MANAMA, 4 September — Shamil Bank announced the launch of two pioneering Shariah compliant retail banking products in a statement issued at a press conference held here yesterday.
Shamil Bank is introducing the first Shariah compliant consumer finance product in Bahrain branded as Tamweel Al-Shamil (Shamil Finance), which will cater specifically to consumers’ liquidity requirements.
The other product, Al-Ruban Islamic credit card, is also a first-of-its-kind to be launched by any Islamic bank.
Al-Ruban which means in Arabic "Ship’s Captain" is named after its pioneering disposition in the Islamic banking industry. The card will be made available to bank’s clients by the end of September. It will offer to its users, the same convenience, power and flexibility that of a conventional credit card while being fully Shariah compliant, the statement said.
The launch of the two products is a fulfillment of Shamil Bank’s commitment to progress through innovative product development in the field of Islamic banking. The addition of the two new products in the bank’s product line is expected to give a significant impetus to its retail banking business in Bahrain and in the region.
Commenting on the advantages of Tamweel Al-Shamil, the bank’s Chief Executive Dr. Said Sa’ad Al-Martan said that "the new product is fully Shariah compliant and is designed on ‘Tawarruq’ concept which is an established Islamic financing structure in Saudi Arabia, to help the consumers in obtaining liquidity for their specific requirements."
"With the introduction of Tamweel Al-Shamil (Tawarruq), consumers who want to avoid Riba, will have the option of no longer seeking conventional forms of financing. Tamweel Al-Shamil will take care of consumers’ pressing financial needs like medical treatment, education, marriage and other emergencies," said Commercial Banking Group head, Khalid Shaheen. He further highlighted that "Tamweel Al-Shamil is designed to meet specific needs currently not being catered for by other structures such as Morabaha and Ijara. The bank has taken special care in keeping a clear distinction between Tamweel Al-Shamil and other existing forms of finance." The statement also mentioned of Al-Ruban (MasterCard) as an Islamic alternative to the conventional credit card. The card which is Shariah compliant will cost lower to the cardholders, compared to the conventional credit cards. Development of this innovative Islamic banking product is being praised by banking professionals as a landmark achievement in the field of Islamic banking and finance, the statement said. Al-Ruban Islamic card will allow its holders to conduct all transactions comparable to conventional credit cards. Al-Ruban will be welcomed at more than 12 million locations in 247 countries and territories. It will also provide customers with an immediate access to 250,000 ATMs through the MasterCard ATM network. Cardholders will also have the convenience of repayment in installment.
"The development and launch of these two products is a result of many months of hard work," said Dr. Al-Martan. "We are extremely thankful to Bahrain Monetary Agency’s continued encouragement and support through the product development phase and for their final approval for the product launches," he said.