An Islamic bank refers to one that offers services designed by taking the Islamic and Shariah principles in regard. Being an Islamic country itself, you will find many Islamic banks in the UAE offering state-of-the-art, Sharia-compliant services.
Let’s explore the top five Islamic banks in the UAE that you can go to for your banking needs. Also, we’ll learn some basics along the way.
- What is Islamic Banking
- Emirates Islamic Bank
- Dubai Islamic Bank
- Abu Dhabi Islamic Bank
- Sharjah Islamic Bank
- Ajman Bank
- FAQs
What is Islamic Banking?
Islamic Banking is a system based on Islamic law (Shariah) principles continued from early Islamic times. It focuses on sharing risks and does not allow financing with fixed, pre-determined interest.
Commercial banks are interest-based and put all the pressure on the borrower. However, Islamic banking in the UAE believes in sharing profits and risks in the business instead of becoming creditors.
For example, in Islamic banking, the borrower, the depositor and the bank all three share the risks and rewards. Another feature of Islamic banking in the UAE is the prohibition of interest, which is strictly forbidden in Islam.
Difference Between Conventional and Islamic Banks
The primary difference between conventional and Islamic banks lies in the principles and policies they operate on. Islamic banks follow Shariah law, which prohibits charging interest (usury), excessive uncertainty (gharar) and funding items or activities like pork, alcohol and gambling.
In contrast, conventional banks operate on an interest-based system. In conventional banking, money is treated as a commodity, and interest is earned through loans and deposits.
Islamic bank products are based on Shariah-approved contracts, such as:
- Murabaha (cost-plus sale)
- Mudarabah (profit-sharing)
- Investment Wakala (agency)
- Ijarah (leasing)
They all line with Islamic principles as guided by Allah’s teachings.
The Islamic Banks in UAE – Top Five
The following Islamic Banks in the UAE are certified by the Central Bank of UAE (CBUAE). These Islamic banks offer all the services that a other banks for expats in the UAE do. However, they are designed with Shariah principles in regard.
1. Emirates Islamic Bank
The first on our list is the Emirates Islamic Bank in the UAE. Established in 2004 with over 35 branches, this bank is a part of the Emirates NBD group. It offers innovative services and Shariah-compliant financial solutions that suit your lifestyle needs.
Whether you are an individual entrepreneur or a full-fledged corporate business, Emirates Islamic Bank is the right choice. It provides the highest-quality solutions with the highest Shariah standards.
Headquarters Address
16th Executive Building, 2nd floor, Dubai Healthcare City, Dubai
Contact
+971-600-59-9995
2. Dubai Islamic Bank
Dubai Islamic Bank was established in 2006 and is one of the leading banks in the UAE. It has over 500 branches all over the country and has around 5 million customers. All the financial solutions and services offered by DIB are regulated by the principles of Islam.
These services are also reviewed and approved by the Shariah Advisory Board. The bank ensures that all investments you make are in Shariah-compliant companies and carries out yearly Shariah audits.
Headquarters Address
Al Maktoum Street, Port Saeed, Deira, Dubai
Contact
+971-4-609-2222
3. Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank stands among the leading Islamic banks in the UAE and is the 4th largest Islamic bank by global assets worldwide. Established in 1997, the bank has its headquarters in Abu Dhabi, serving as the first Islamic bank in the emirate.
The bank offers comprehensive banking solutions for individuals, corporations, and high-net-worth clients. With an extensive network of 62 branches and 379 ATMs, ADIB ensures accessible services across the nation.
Unlike traditional banking, the ADIB also provides other services. These include brokerage, real estate and property management, payment solutions, and insurance services that are all Shariah-compliant.
Headquarters Address
Sheikh Rashid Bin Saeed Street (Old Airport Road) opposite Millennium Al Rawdah Hotel, Abu Dhabi
Contact
+971-600-54-3216
4. Sharjah Islamic Bank
Established in 1975, the Sharjah Islamic Bank was converted from a conventional bank to an Islamic one, officially in 2006. It has become the largest bank in Sharjah and the first bank ever in the world to transition from conventional to Islamic.
The bank offers a wide range of Sharia-compliant retail, corporate, and investment products and services to its valued customers. It has an extensive network across the UAE, offering innovative, flexible and Shariah-compliant services suiting your needs and preferences.
Headquarters Address
Sharjah Islamic Bank Tower, Al Khan, Sharjah
Contact
+971-6-599-9999
5. Ajman Bank
Established in 2007, the Ajman Bank is the first and largest Islamic bank in Ajman. It offers a wide range of responsible banking and financial services in the UAE. All these services are Sharia-compliant, catering to individuals, businesses and government institutions to support their growth and economic progress.
The Internal Sharia Supervision Committee (ISSC) is responsible for ensuring all the bank services and activities comply with the Shariah standards. The committee at Ajman Bank reports to the General Assembly, presenting an annual report after it is approved by the UAE Central Bank’s Higher Sharia Authority.
The ISSC consists of respected Sharia scholars with deep expertise in Islamic jurisprudence (Fiqh-al-Muamalaat), law, economics, banking and financial systems. Hence, the bank offers solutions of the highest quality and according to the highest Islamic jurisprudence.
Headquarters Address
Al Ettehad Street, Next to Etisalat Building, Mushairef, Ajman
Contact
+971-600-55-5522
FAQs
According to the Central Bank of UAE, there are eight fully-fledged Islamic banks in the UAE, with branches all across the country. However, conventional banks are gradually diverting their market and offering Islamic banking solutions to their customers.
Emirates Islamic provides a wide range of Sharia-compliant products and services and corporate banking needs. It is supported by a network of 40 branches and 221 ATMs/CDMs throughout the UAE.
This article will help you find the best Islamic bank in the country and choose the one that suits your needs and preferences. Moreover, if you need more help with your finances, learn how to get a bank account in the UAE and a visa card.
