Khaleeji Commercial Bank (KHCB), a Bahrain-based Islamic retail bank, has announced the launch of an investment account based on the Sharia principle of Mudharabah.

The Call Mudharabah Account combines the flexibility and convenience of a current account with the concept of profit sharing of the Mudharabah Investment Account, reported the Gulf Daily News, our sister publication.

In the Islamic principle of Mudharabah, the investor forges a partnership with the bank by entrusting funds with the bank, after which the bank provides its expertise in investing the capital to earn profits, which will be shared by the partners on a pre-determined ratio within a given period.

Thus, a Call Mudharabah Account allows an account holder to utilise it like a regular current account, perform banking transactions such as withdrawals and deposits, and at the same time receive an expected profit on a quarterly basis, it stated.

KHCB chief executive Khalil Al Meer said: "This initiative springs from our commitment to consistently providing new and innovative products with exceptional benefits, and improving our services for our valued customers everyday."

The Call Mudharabah Account is open to companies as well as individuals who are residents of Bahrain and the GCC for a minimum BD10,000 ($2721) deposit.

Linked to a current account, one can make a host of transactions such as redemptions and increments, withdrawals and debits, as well as use ATM facilities and acquire 24-hour online access on the KHCB e-banking system.

"In response to the growing demand for Islamic banking services in the region, we constantly strive to bring new experiences within the category, and continuously innovate and diversify into new Islamic banking products and services," stated Al Meer.

"It complies with our strategy to offer appropriate schemes to customers who require Sharia-compliant services, and is an important step towards our goal of becoming a leading domestic and regional Islamic bank," he added.-TradeArabia News Service