Dubai Islamic Bank Pakistan
Dubai Islamic Bank has a unique quality of being the world’s first Islamic bank, a start institution that has combined the best of traditional Islamic values with the technology and innovation that characterize the best of modern banking.
Dubai Islamic Bank Pakistan Limited (DIBPL), commenced operations in 2006. DIBPL has undertaken major action to expand its branch network across the country. Banking Pk is offering state-of-the-art Shari compliant products that effectively compete with those being offered in the market by conventional banks.
While civil teachers and Islamic modernists see Islamic Banking as a modern fact or “created from” pastors like Mohammed Naveen insist it is “as old as the religion itself with its principles primarily derived from the Quran”. An early market economy and an early form of competition, sometimes called Islamic capitalism, was developed between the eighth and twelfth centuries. The monetary economy of the period was based on the widely circulated currency the gold dinar, and it tied together regions that were previously economically independent.
History of Islamic Banking
Islamic banking refers to a system of banking that complies with Islamic law. The basic principles that control Islamic banking are mutual risk and profit-sharing between parties, the assurance of fairness for all, and that transactions are based on basic business activity or asset.
These principles are supported by Islamic banking’s core values whereby activities that cultivate enterprise, trade and commerce and bring societal development or benefit is encouraged. Activities that involve interest action and risky trading are illegal.
Through the use of various Islamic finance concepts such as profit sharing, partnership, financial institutions have a great deal of flexibility, creativity, and choice in the creation of Islamic finance products. Furthermore, by emphasizing the need for transactions to be supported by honest trade or business-related activities, Islamic banking sets a higher standard for investments and promotes greater liability and risk relief.
Islamic finance has grown extremely since its was first shown in the 1970s. Current global Islamic banking assets and assets under management have reached USD750 billion and is expected to hit USD1 trillion by 2010.
There are over 300 Islamic financial institutions worldwide across 75 countries. According to the Asian Banker Research Group, the world’s 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing average growth of 15-20% annually.
Types of Islamic lending
One of the leaders of Islamic banking, Mohammad Najatuallah Siddiqui, suggested a two-tier mudarabah model as the basis of a riba-free banking. Banking Pk would act as the capital partner in mudarabah accounts with the depositor on one side and the entrepreneur on the other side. This model would be improved by a number of fixed-return models mark-up leasing cash advances for the purchase of agricultural produce (salam) and cash advances for the manufacture of assets etc.
In practice, the fixed-return models, in particular Murabaha model, were Banking Pk’s favorites, as they bear results most similar to the interest-based finance models. Assets managed under these products far exceed those in “profit-loss-sharing modes” such as mudarabah and musharakah.
Vision, Mission & values of Islamic Bank
The Vision of Bank Islamic is to be recognized as the leading Authentic Islamic Bank.
The Mission of Bank Islamic is to create value for our stakeholders by offering Authentic, Sharia Compliant, and technologically advanced products and services. We understand ourselves through:
- Understanding our client’s needs
- Commitment to excellence
- Fast, efficient and seamless delivery of the solution. As a growing institution, the foundation for our performance lies in our human capital and Bank Islamic remains committed to becoming an employer of choice, attracting and developing talent in a clear and performance-driven culture.
Our Core Values:
Bank Islamic is strongly committed towards its core values of:
- Product authenticity
- Customer focus