Products and Services Offered by Abu Dhabi Islamic Bank

Running head: FINANCIAL MARKETS AND INSTITUTES
Financial Markets and Institutes
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1FINANCIAL MARKETS AND INSTITUTES
Table of Contents
Introduction......................................................................................................................................2
Products and services offered by ADIB..........................................................................................2
Differentiated banking mechanism than the conventional banks....................................................2
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

2FINANCIAL MARKETS AND INSTITUTES
Introduction
“Abu Dhabi Islamic Bank” established in 20 May 1997 is listed as a Public Joint Stock
Company through “Amiri Decree No. 9 of 1997”. The formal initiation of the commercial
operations of the bank started in 11 November 1998. These operations of the bank are discerned
with “paid-up capital of one billion dirhams” and further segregated into one “hundred million
shares”. The value of the individual shares of the company is observed with the shares quoted as
per “Abu Dhabi Securities Market” (Adib.ae, 2018).
Products and services offered by ADIB
The corporate banking services of the company is seen to offer different Islamic Banking
solutions such as Murabaha, Istisnaa, Ijara, the drawings covered by Islamic regulations and
different types of other Sharia compliant products (Adib.ae, 2018). The corporate banking
solutions also includes diversified private sector base of “Trading, Transportation, real estate and
target market of the bank”. The wealth management experts of the bank include insightful
decisions for the savings and decisions on select asset classes based on diverse investment
themes such as “oil, gold and group of equities”. The bank offers capital protection plan and
recommendations to the investors of different time horizons (Adib.ae, 2018).
Differentiated banking mechanism than the conventional banks
Type of
Loan
Islamic Process Conventional Bank Process
Car
Finance
This process of ADIB is seen to follow
Islamic financing structure which requires
the intermediaries to buy the property with
free and clear title as per Murabaha
mechanism. In case an individual applies
for an auto loan under this process, the loan
will be non-interest bearing in nature
which is considered to be free from any
riba (or excess). The bank will buy the
The important difference in the
conventional loan process is seen in
terms of the contract structure.
Murabaha is recognized as a sale
contract, the conventional loan
process on the other hand is based
on interest based lending agreement
and transaction (Majd Bakir,
2014). The conventional process of