Emirates Islamic Bank, a leading Islamic financial institution in the UAE, has launched a four-year Wakala investment option for customers, with an expected profit rate of 2.57 per cent per annum.

Available on investment amounts ranging from Dh100,000 to Dh5 million ($27,222 to $1.36 million), Emirates Islamic’s latest product closely follows the launch of the three-year special Ramadan Wakala, that was introduced earlier this year.

The four-year Wakala investment option differs from conventional Wakala investments, with the profits being paid out on an annual basis to customers.

According to Sharia, a Wakala is a contract between the customer and the bank, where the bank as the agent has the responsibility to perform a certain task (such as invest in Sharia-compliant goods and/ or financial assets) on behalf of the customer usually for payment of a fee or a commission.

While the amount invested will be for a period of four years, the profits will be paid annually to the customers, said the UAE bank.

“As a responsible bank focused on community-related initiatives, Emirates Islamic is encouraging its customers to take advantage of such products and develop a culture of saving,” remarked Faisal Aqil, the deputy CEO for Consumer Wealth Management.

“To this end, we are launching a variety of Sharia-compliant savings products, which we are confident will inspire greater saving trends among customers,” he stated.-TradeArabia News Service