National Bank Of Fujairah Launches New Islamic Unit

National Bank of Fujairah (NBF) has announced that it has begun offering Islamic products with the launch of NBF Islamic, which offers Shariah-compliant financial solutions.

The lender said that it launched the proposition following strong customer demand.

NBF Islamic will initially offer a series of retail banking products but plans are underway to expand the service to support companies and businesses in the UAE, NBF said in a statement.

The bank has also appointed a Shariah supervisory board consisting of four Islamic scholars including Dr. Mohamed Ali Elgari (chairman), Dr. Mohd Daud Bakar, Dr. Muhammad Amin Ali Qattan and Dr Osama Al Dereai.

Sharif Mohd. Rafei, NBF’s head of retail banking, said: “Over the years, we have been witnessing a growing demand for Islamic banking products as we broadened our personal banking footprint beyond our traditional home base of Fujairah.

Islamic banking in the UAE has been growing strongly with many conventional banks now tapping into the sector.

According to a recent report from Ernst and Young, UAE’s Islamic banking assets rose to reach $95 billion in 2013 compared to $83 billion in 2012.

The report showed that the compound annual growth rate (CAGR) for Islamic banking assets in the UAE is expected to be around 17 per cent over the period 2013 to 2018.

Dubai too is aiming to tap into the potential of Islamic finance with plans to become a global hub that will rival other Islamic finance centres like Kuala Lumpur and London.

Last year, Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum issued a decree to establish the Dubai Islamic Economy Development Centre that is expected to aid the emirate’s ambitions.