Emirates Islamic Introduces UAE's Inaugural Shariah-compliant CD Initiative

Post by : Bianca Suleiman

In a transformative move for Islamic banking in the UAE, Emirates Islamic has unveiled the country’s first Shariah-compliant Certificate of Deposit (CD) Programme, signaling a pivotal advancement in financial innovation.

Targeted primarily at institutional investors, this groundbreaking Islamic CD Programme provides a unique avenue for diversifying money market investments while securing attractive returns. With a total value of USD 2 billion, the programme offers flexibility through multiple currencies and investment tenors.

The initiative also aligns with Emirates Islamic’s goals to broaden its funding sources and enhance its footprint in the global financial arena. This launch underscores the bank's enduring commitment to fostering inventive Islamic financial instruments and contributing to the UAE’s aspiration of becoming a global Islamic finance hub.

Farid AlMulla, CEO of Emirates Islamic, articulated that the introduction of this Certificate of Deposit Programme serves to reinforce the bank’s leadership in the Islamic banking sector. It dovetails with the UAE’s ‘We the UAE 2031’ vision, reflecting the bank’s commitment to delivering cutting-edge Islamic financial solutions for international investors.

Mohammad Kamran Wajid, Deputy CEO at Emirates Islamic, emphasized that this new programme is poised to enhance liquidity management while offering tailored financial solutions to clients. He noted that this initiative will draw new international investors, bolstering the bank’s authority in Islamic liquidity management, in accordance with the UAE Strategy for Islamic Finance and Halal Industry 2031.

Ebrahim Qayed, Head of Treasury and Markets, characterized this programme as a significant milestone in Shariah-compliant liquidity management. He pointed out that it ranks among the first Islamic CD initiatives in hard currencies globally, reflecting the bank's dedication to innovating in response to evolving market needs.

Market analysis reveals that the global Certificate of Deposit sector currently holds a valuation of approximately USD 729 billion, projected to escalate to nearly USD 1.2 trillion by 2033. Approximately 46% of global CD issuances are in US dollars.

As demand for short-term investment tools grows within the global marketplace and the GCC region, Emirates Islamic’s Shariah-compliant CD Programme is set to enhance Islamic capital markets and solidify the UAE’s status as a preeminent centre for Islamic finance.