Have a look at UAE financial sector especially the Islamic banking in UAE which is quite stable and looks strong in front of its competitors. It’s all because of the presence of international investors who are engaging and taking the services of Dubai banks. There no match of the revenue is a small state is generating like you will be surprised to know that the actual exports of UAE are almost equal to the total budget of the India and Pakistan. What does it mean? It means that this not only a matter of stability but the overall financial growth of the region. We see every year thousands of hundreds of visitors come to Dubai to taste the lifestyle in this region. Now they are actually financial supporters of the state.
As you all know that the banking sector is the most important sector in UAE and almost half of the total economy of UAE is based on it. With the addition of Islamic banking in UAE, the economy gets reboots with a strong speed a few years ago.
The past situation of the economy like in 70’s was completely based on the traditional mode of communication. One has to wait for many days even for just a simple transaction. But today the banking sector in Dubai is quite professional and up to the international standards. At the same time involvement of Islamic banks in UAE have contributed a lot.
What is the point of conflict between commercial and Islamic banking?
One is working in a conventional way with a motive to get profit as much as possible. There is a term of interest rate that is the main tool of this system. You can earn a lot by using this tool. For each service that will be provided by a lender will actually cost a customer with a fixed amount of interest rate which is against the basics of Islamic banks in UAE. Nothing to be delivered without taking some portion of interest rate. For example, credit card services are one of the most relative examples of conventional banking. The lender will catch you first by providing a lot of attractive and amazing perks in the form of cash back discount offers, overdraft balance facility, and many other priority services. And then charge you with a heavy interest rate which is an alarming situation for a jobholder especially.
Following services are quite popular through conventional banking:
- Credit card services
- Online banking facility
- Investment schemes
- Wealth management
- Home loan services
Heading to our main topic, now we will discuss the Islamic account system. The vast majority of expatriates are interested in having an Islamic account, a number of Islamic banks are serving in Dubai. The main difference that makes a distinction for Islamic banks in its interest-free system. Yes, what I’m saying is 100% based on truth. I know it is really hard to believe but the reality is same as what I’m saying. Islamic banks in UAE are working completely according to sharia complaint law and never ever come out of the limits.
Among all Mashreq Bank is one of the best options for Islamic banking services.
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