Competition in the crowded credit-card market will heat up with a new Sharia-compliant card from Abu Dhabi Islamic Bank (Adib).
Adib's cardholders will be allowed to opt for the new Islamic credit card or hold both.
"There is a clear need in the market for an alternative to the conventional credit card, a card that meets Sharia rules and regulations and we are optimistic the new card will go down well because it allows deferred payments," said Abdul Aziz Al Mehairi, acting chief executive.
"The aim of such a card is not merely profit but service and our pricing and charges will be our unique selling point."
Muslims and non-Muslims are eligible for the card, which allows customers to carry the balance forward and pay in monthly installments.
Prior to this card, Adib's as well as other cards offered by Islamic institutions, were charge cards, forcing customers to settle the full outstanding balance on their monthly statement.
"Interest is forbidden in Islam, therefore there was a compelling need for a product that would comply with Sharia while offering the benefits of a conventional credit card," said Al Mehairi, noting that Adib developed the card after years of research by bankers and Islamic scholars.
The cardholder is also covered by Takaful (Islamic insurance) that includes travel and accident insurance and a purchase protection programme for all purchases made using the card.
The new Islamic credit card comes in three types: classic, gold and platinum. Adib has some 5,000 cardholders.
Gulf News
