Report Money and Banking

Dubai Islamic Bank
Mohammad Ali Jinnah University 2

Dubai Islamic Bank
Project
Report

Dubai Islamic Bank
Dubai
Islamic Bank
By;
Syed Owais Ali (SP07-BB-
0135)
M. Moez Siddiqui (SP07-BB-
0124)
M. Laraib (SP07-BB-
0082)
Dubai Islamic Bank
Pawan Kumar (Sp07-BB-

0128)
Shahbaz Nawaz (Sp07-BB-
0150)
Bhawani Shankar (SP07-BB-
0039)
TABLE OF CONTENTS
Overview.........................................................................................................................................6
Introduction.....................................................................................................................................7
History and the Present Strategy ....................................................................................................9
Industry Status as Of Now............................................................................................................12
Major Modes of Islamic Banking and Finance.............................................................................13
Dubai Islamic Bank.......................................................................................................................17
Vision........................................................................................................................................19
Mission......................................................................................................................................19
Value.........................................................................................................................................19
Dubai Islamic Bank Global...........................................................................................................20
Products .......................................................................................................................................23
CURRENT ACCOUNT............................................................................................................23
SAVINGS ACCOUNT.............................................................................................................24
FIXED DEPOSIT.....................................................................................................................25
VISA DEBIT CARD................................................................................................................25
HOME FINANCE.....................................................................................................................27
AUTO FINANCE.....................................................................................................................28
DUBAI LOUNGE.....................................................................................................................28
Services.........................................................................................................................................28
DUBAI ISLAMIC INTERNET BANKING.............................................................................28
PHONE BANKING..................................................................................................................30
Role of Islamic Banks in Economic Development of Country.....................................................33
Dubai Islamic Branches................................................................................................................35
Islamic Banking Global Scenario..................................................................................................36
Current Account............................................................................................................................39
a) Individual or Joint Accounts:...............................................................................................40
b) Minor’s Account :................................................................................................................42
c) Purdah (Veil) observing Ladies:..........................................................................................42
d) Illiterate/Photo Account:.......................................................................................................43
e) Sole Proprietorship Account:...............................................................................................45
f). Partnership Account:............................................................................................................45
g). Limited Liability/Statutory corporations Company Account:.............................................47
Dubai Islamic Bank
References....................................................................................................................................51
Overview
This report will cover the information related to the Islamic
Banking and its overall functions and working procedure. The
main influence of this report is on Dubai Islamic Bank, its
establishment and its role that he played in an economy and all
the related aspects are also a part of this report.
The Dubai Islamic Bank (DIB), established in 1975, was one of the
first Islamic banks in the UAE. The bank offers a range of Islamic
commercial banking as well as investment banking including
advisory and asset management. DIB ranked as the sixth largest
commercial bank and the largest Islamic bank in the UAE in terms
of total assets, which amounted to AED64.4 billion (USD17.5
billion) by the close of 2006.
DIB expanded its branch network from 12 branches in 2002 to 50

branches as of November 2008 throughout the UAE. DIB further
expanded its banking operations into Iran, Pakistan and Sudan.
The bank has a diversified portfolio of subsidiaries operating
across various industries including financial services, shipping
and real estate.
Within its corporate banking activities, DIB places special

emphasis on
contracting and real estate financing. Publicly-listed on the Dubai
Financial Market, DIB completed a rights issue by October 2006
which raised its paid-up capital to AED2.8 billion (USD762.5
million). DIB increased its revenues by 70% to AED4.6 billion
(USD1.2 billion) in 2006 from AED 2.7 billion (USD734.1 million) in

Dubai Islamic Bank
2005. Net profits rose by 47% to AED1.6 billion (USD424.8

million) in 2006 from AED1.0 billion (USD288.9 million) in 2005.
Introduction
Definition
Islamic banking has been defined as banking in consonance with
the ethos and value system of Islam and governed, in addition to
the conventional good governance and risk management rules,
by the principles laid down by Islamic Shariah. Interest free
banking is a narrow concept denoting a number of banking
instruments or operations, which avoid interest. Islamic banking,
the more general term is expected not only to avoid interest-
based transactions, prohibited in the Islamic Shariah, but also to
avoid unethical practices and participate actively in achieving the
goals and objectives of an Islamic economy.
Philosophy of Islamic banking and finance

Islamic Shariah prohibits ‘interest’ but it does not prohibit all
gains on capital. It is only the increase stipulated or sought over
the principal of a loan or debt that is prohibited. Islamic principles
simply require that performance of capital should also be
considered while rewarding the capital. The prohibition of a risk
free return and permission of trading, as enshrined in the Verse
2:275 of the Holy Quran, makes the financial activities in an
Islamic set-up real asset-backed with ability to cause ‘value
addition’.

Dubai Islamic Bank
Islamic banking system is based on risk-sharing, owning and

handling of physical goods, involvement in the process of trading,
leasing and construction contracts using various Islamic modes of
business and finance. As such, Islamic banks deal with asset
management for the purpose of income generation. They will
have to prudently handle the unique risks involved in
management of assets by adherence to the best practices of
corporate governance. Once the banks have stable stream of
Halal income, depositors will also receive stable and Halal
income.
The forms of businesses allowed by Islam at the time the Holy

Quran was revealed included joint ventures based on sharing of
risks & profits and provision of services through trading, both
cash and credit, and leasing activities. In the Verse II:275, Allah
the Almighty resolutely informed that He has permitted trade,
that could be both cash and credit, and prohibited Riba.
Profit has been recognized as ‘reward’ for (use of) capital and
Islam permits gainful deployment of surplus resources for
enhancement of their value. However, alongwith the entitlement
of profit, the liability of risk of loss on capital rests with the capital
itself; no other factor can be made to bear the burden of the risk
of loss. Therefore, financial transactions, in order to be
permissible, should be associated with goods, services or
benefits. While at micro level this feature of Islamic finance leads
to generation of real economic activity and stable growth, at
macro level it can be helpful in creating better discipline in
conduct of fiscal and monetary policies.
Besides trading, Islam allows leasing of assets and getting rentals

against the usufruct taken by the lessee. All such things/assets
corpuses of which are not consumed with their use can be leased
out against fixed rentals. The ownership in leased assets remains
with the lessor who assumes risks and gets rewards of his
ownership.

Dubai Islamic Bank
History and the Present Strategy

Steps for Islamization of banking and financial system of Pakistan
were started in 1977-78. Pakistan was among the three countries
in the world that had been trying to implement interest free
banking at comprehensive/national level. But as it was a
mammoth task, the switchover plan was implemented in phases.
The Islamization measures included the elimination of interest
from the operations of specialized financial institutions including
HBFC, ICP and NIT in July 1979 and that of the commercial banks
during January 1981 to June 1985. The legal framework of
Pakistan's financial and corporate system was amended on June
26, 1980 to permit issuance of a Shariah compliant instrument of
corporate financing named Participation Term Certificate (PTC).
An Ordinance was promulgated to allow the establishment of
Mudaraba companies and floatation of Mudaraba certificates for
raising risk based capital. Amendments were also made in the
Banking Companies Ordinance, 1962 (The BCO, 1962) and
related laws to include provision of bank finance through PLS,
mark-up in prices, leasing and hire purchase.
Separate Interest-free counters started operating in all the

nationalized commercial banks on January 1, 1981 to mobilize
Dubai Islamic Bank
deposits on profit and loss sharing basis. Regarding investment of

these funds, bankers were instructed to provide financial
accommodation for Government commodity operations on the
basis of sale on deferred payment with a mark-up on purchase
price. Export bills were to be accommodated on exchange rate
differential basis. In March, 1981 financing of import and inland
bills and that of the then Rice Export Corporation of Pakistan,
Cotton Export Corporation and the Trading Corporation of
Pakistan were shifted to mark-up basis. Simultaneously,
necessary amendments were made in the related laws permitting
the State Bank to provide finance against Participation Term
Certificates and also extend advances against promissory notes
supported by PTCs and Mudaraba Certificates. From July 1, 1982
banks were allowed to provide finance for meeting the working
capital needs of trade and industry on a selective basis under the
technique of Musharaka.
As from April 1, 1985 all finances to all entities including

individuals began to be made in one of the specified interest-free
modes. From July 1, 1985, all commercial banking in Pak Rupees
was made interest-free. From that date, no bank in Pakistan was
allowed to accept any interest-bearing deposits and all existing
deposits in a bank were treated to be on the basis of profit and
loss sharing. Deposits in current accounts continued to be
accepted but no interest or share in profit or loss was allowed to
these accounts. However, foreign currency deposits in Pakistan
and on-lending of foreign loans continued as before. The State
Bank of Pakistan specified 12 modes of non-interest financing
classified in three broad categories. However, in any particular
case, the mode of financing to be adopted was left to the mutual
option of the banks and their clients.
The procedure adopted by banks in Pakistan since July 1 1985,

based largely on ‘mark-up’ technique with or without ‘buy-back
arrangement’, was, however, declared un-Islamic by the Federal
Shariat Court (FSC) in November 1991. However, appeals were
made in the Shariat Appellate Bench (SAB) of the Supreme Court
of Pakistan. The SAB delivered its judgment on December 23,
1999 rejecting the appeals and directing that laws involving
interest would cease to have effect finally by June 30, 2001. In
the judgment, the Court concluded that the financial system in
vogue had to be subjected to radical changes to bring it into
conformity with the Shariah. It also directed the Government to
Dubai Islamic Bank
set up, within specified time frame, a Commission for

Transformation of the financial system and two Task Forces to
plan and implement the process of the transformation.
The Commission for Transformation of Financial System (CTFS)

was constituted in January 2000 in the State Bank of Pakistan
under the Chairmanship of Mr. I.A. Hanfi, former Governor State
Bank of Pakistan. A Task Force was set up in the Ministry of
Finance to suggest the ways to eliminate interest from
Government financial transactions. Another Task Force was set
up in the Ministry of Law to suggest amendments in legal
framework to implement the Court’s Judgment. The CTFS
constituted a Committee for Development of Financial
Instruments and Standardized Documents in the State Bank to
prepare model agreements and financial instruments for new
system.
The CTFS in its Report identified a number of prior actions, which

were needed to be taken to prepare the ground for
transformation of the financial system. It also identified major
Shariah compliant modes of financing, their essentials, draft
seminal law captioned ‘Islamization of Financial Transactions
Ordinance, 2001’, model agreements for major modes of
financing, and guidelines for conversion of products and services
of banks and financial institutions. The Commission also dealt
with major products of banks and financial institutions, both for
assets and liabilities side, like letters of credit or guarantee, bills
of exchange, term finance certificates (TFCs), State Bank's
Refinance Schemes, Credit Cards, Inter-bank transactions,
underwriting, foreign currency forward cover and various kinds of
bank accounts. The Commission observed that for Islamic
banking all deposits, except current accounts, would be accepted
on Mudaraba principle. Current accounts would not carry any
return and the banks would be at liberty to levy service charge as
fee for their handling. The Commission also approved the concept
of Daily Product and Weightage System for distribution of profit
among various kinds of liabilities/deposits. The Report also
contained recommendations for forestalling willful default and
safeguarding interest of the banks, depositors and the clients.
According to the Commission, prior/preparatory works for

introduction of Shariah compliant financial system briefly
included creating legal infrastructure conducive for working of
Dubai Islamic Bank
Islamic financial system, launching a massive education and

training program for bankers and their clients and an effective
campaign through media for the general public to create
awareness about the Islamic financial system.
Industry Status as Of Now

State Bank of Pakistan has got an encouraging response to its
new strategy for promoting Islamic banking in parallel with
conventional banking. The move is market based, over a dozen of
the institutions have come into the market and many more are
planning to enter. As a whole there are 100 Islamic Banking
Branches operating in all major cities of Pakistan.

Dubai Islamic Bank
As of June, 2006, Meezan Bank, Albaraka Bank, Bank Islami

Pakistan and Dubai Islamic Bank, pakistan are operating with 32,
9, 3 and one branch respectively in 12 cities in Pakistan as full
fledged Islamic banks. In addition to it, many banks including
MCB, HBL, Bank of Khyber, Bank Alfalah, Habib Bank AG Zurich,
Bank Al Habib, Soneri Bank, Standard Chartered Bank, Prime
bank, Metropolitan Bank and Askari bank are running a large
number of dedicated Islamic Banking Branches (IBB) in various
cities like Karachi, Islamabad, Lahore, Peshawar, Quetta,
Hyderabad, Faisalabad, Sialkot Bannu, Gujranwala and Multan.
These banks are planning to offer Islamic banking products in
other big cities during the year 2006. Some of the banks who are
operating Islamic banking branches are planning to offer Islamic
banking products through their existing conventional branches by
using hub & spoke arrangement. It will increase the outreach of
Islamic banking products in other cities as well.
The share of their deposits and total assets in deposits and assets
of the banking system as a whole stood at 2 per cent and 2.27
per cent respectively as on June 17, 2006. Government of
Pakistan issued sovereign Ijarah Sukuk in 2005 worth US$ 600
million that carried a fixed rate of 2.20 % over 6 months LIBOR in
the form of rentals. WAPDA, a public sector corporation, also
issued Ijarah Sukuk of Rs. 8 billion carrying rental @6 months
KIBOR plus 35 bps of ten Mangla Dam hydel power generating
units.
Major Modes of Islamic Banking

and Finance
Following are the main modes of Islamic banking and finance:
Murabaha
Dubai Islamic Bank
Literally it means a sale on mutually agreed profit. Technically, it

is a contract of sale in which the seller declares his cost and
profit. The parties negotiate on the margin or the rate of profit
on the cost. Islamic banks have adopted this as a mode of
financing. As a financing technique, it involves a request by the
client to the bank to purchase certain goods for him. The bank
does that for a definite profit over the cost, which is stipulated in
advance.
Ijarah
Ijarah is a contract of a known and proposed usufruct against a
specified and lawful return or consideration for the service or
return for the benefit proposed to be taken, or for the effort or
work proposed to be expended. In other words, Ijarah or leasing
is the transfer of usufruct for a consideration which is rent in case
of hiring of assets or things and wage in case of hiring of persons.
Ijarah-wal-Iqtina′
A contract under which an Islamic bank provides equipment,
building or other assets to the client against an agreed rental
together with a unilateral undertaking by the bank or the client
that at the end of the lease period, the ownership in the asset
would be transferred to the lessee. The undertaking or the
promise does not become an integral part of the lease contract to
make it conditional. The rentals as well as the purchase price are
fixed in such manner that the bank gets back its principal sum
alongwith with profit over the period of lease.
Musawamah
Musawamah is a general and regular kind of sale in which price of
the commodity to be traded is bargained between seller and the
buyer without any reference to the price paid or cost incurred by
the former. Thus, it is different from Murabaha in respect of
pricing formula. Unlike Murabaha, seller in Musawamah is not
obliged to reveal his cost. Both the parties negotiate on the
price. All other conditions relevant to Murabaha are valid for
Musawamah as well. Musawamah can be used where the seller is
not in a position to ascertain precisely the costs of commodities
that he is offering to sell.

Dubai Islamic Bank
Istisna′ a
It is a contractual agreement for manufacturing goods and
commodities, allowing cash payment in advance and future
delivery or a future payment and future delivery. Istisna’a can be
used for providing the facility of financing the manufacture or
construction of houses, plants, projects and building of bridges,
roads and highways.
Bai′ Muajjal
Literally it means a credit sale. Technically, it is a financing
technique adopted by Islamic banks that takes the form of
Murabaha Muajjal. It is a contract in which the bank earns a
profit margin on his purchase price and allows the buyer to pay
the price of the commodity at a future date in a lump sum or in
installments. In case of Murabaha-Muajjal, it has to expressly
mention cost of the commodity and the margin of profit is
mutually agreed. The price fixed for the commodity in such a
transaction can be the same as the spot price or higher or lower
than the spot price.
Mudarabah
A form of partnership where one party provides the funds while
the other provides expertise and management. The latter is
referred to as the Mudarib. Any profits accrued are shared
between the two parties on a pre-agreed basis, while loss is
borne only by the provider of the capital.
Musharakah
Musharakah means a relationship established under a contract by
the mutual consent of the parties for sharing of profits and losses
in the joint business. It is an agreement under which the Islamic
bank provides funds, which are mixed with the funds of the
business enterprise and others. All providers of capital are
entitled to participate in management, but not necessarily
required to do so. The profit is distributed among the partners in
pre-agreed ratios, while the loss is borne by each partner strictly
in proportion to respective capital contributions.
Dubai Islamic Bank
Bai′ Salam
Salam means a contract in which advance payment is made for
goods to be delivered later on. The seller undertakes to supply
some specific goods to the buyer at a future date in exchange of
an advance price fully paid at the time of contract. It is necessary
that the quality of the commodity intended to be purchased is
fully specified leaving no ambiguity leading to dispute. The
objects of this sale are the general goods and cannot be gold,
silver or currencies. Barring this, Bai′ Salam covers almost
everything, which is capable of being definitely described as to
quantity, quality and workmanship.

Dubai Islamic Bank
Dubai Islamic Bank

Dubai Islamic Bank has the unique distinction of being the world’s
first fully-fledged Islamic bank, a pioneering institution that has
combined the best of traditional Islamic values with the
technology and innovation that characterise the best of modern
banking. Since its formation in 1975, Dubai Islamic Bank has
established itself as the undisputed leader in its field, setting the
standards for others to follow as the trend towards Islamic
banking gathers momentum in the Arab world and
internationally.
Islamic banking and finance is now one of the world’s fastest-

growing economic sectors that comprise more than 400
institutions with assets under management in excess of US$ 1
trillion (US$1,000 billion).
In this context, the role of Dubai Islamic Bank is even more

impressive. Yet, the bank remains true to its roots as a customer-
centered organisation where close personal service and
understanding form the basis of all its relationships. Tradition and
heritage join with a commitment to flexibility, innovation and
modernity, so that customers of every nature are provided with
comprehensive solutions to all their financial needs.
Dubai Islamic Bank has the unique distinction of being the world’s
first fully-fledged Islamic bank, a pioneering institution that has
combined the best of traditional Islamic values with the
technology and innovation that characterise the best of modern
banking. Since its formation in 1975, Dubai Islamic Bank has
established itself as the undisputed leader in its field, setting the
standards for others to follow as the trend towards Islamic
banking gathers momentum in the Arab world and
internationally.
Islamic banking and finance is now one of the world’s fastest-

growing economic sectors that comprise more than 400
institutions with assets under management in excess of US$ 1
trillion (US$1,000 billion).
In this context, the role of Dubai Islamic Bank is even more

impressive. Yet, the bank remains true to its roots as a customer-
Dubai Islamic Bank
centered organisation where close personal service and

understanding form the basis of all its relationships. Tradition and
heritage join with a commitment to flexibility, innovation and
modernity, so that customers of every nature are provided with
comprehensive solutions to all their financial needs.
The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank

Pakistan Limited(DIBPL), the license for the establishment of its
operations in Pakistan on Saturday, November 26, 2005. Since
then, DIBPL has undertaken major initiatives to expand its branch
network across the country. Under its consumer banking division,
the bank is offering state-of-the-art Sharia compliant products
that effectively compete with those being offered in the market
by conventional banks. This is not the Bank’s only strength
though. It also has expertise in providing Retail, Private, Small
and Medium Enterprises, Corporate, Investment Banking and
Advisory services.
The Bank has launched Pakistan's first Islamic Visa Debit Card
and introduced financial products covering Home Financing, Auto
Financing, and Depository products.
DIBPL has also introduced Priority Banking and Internet Banking,

both of which are being recognized as benchmark products in
their respective categories. Besides regular banking services, the
Bank is committed to bringing foreign investment to the country.
DIBPL's corporate wing has actively pursued foreign investors and
convinced world renowned giants from the GCC to be part of
Pakistan's economy.
DIBPL is a Public Limited company. Its total worth is Rs. 5.1 billion
which will gradually increase to Rs. 6 billion. DIBPL is 100%
owned by Dubai Islamic Bank PJSC (Public Joint Stock Company)
and its nominated shareholders. The parent company is a listed
company in Dubai.

Dubai Islamic Bank
Vision
Dubai Islamic Bank Pakistan Limited ('DIBPL') will be the leading
provider of world class banking – the Islamic way by being the
first choice of our customers and our employees.
Mission
Innovation, Talent and technology.
Value
Trust Listening Innovation Social Responsibility Fun

Dubai Islamic Bank
Dubai Islamic Bank Global

Thirty years ago, Dubai Islamic Bank ('DIB') created history by
becoming the world's first Islamic Bank. Today, Islamic banking
has become one of the fastest growing economic sectors with
over 300 financial institutions, with assets estimated at over US
$300 billion providing Islamic financial services.
Despite huge growth in the sector DIB continues to be the

industry pioneer and undisputed market leader to date. Since its
inception, DIB has evolved from a retail bank to a fully fledged
bank catering to almost all the requirements of its customers in
providing Sharia-compliant solutions to major local and
international companies. It has constantly upgraded its services
to private individuals, who remain a highly valuable element of
DIB's customer base.
By combining the best traditional Islamic values with high-

standard technology and innovation, DIB is committed to not only
fully comply with the principles of Shari’a in all its financial
dealings but to also facilitate its customers who venture into the
world of Islamic banking in such a befitting way that they would
feel reaping the best rewards of both the worlds.
For its outstanding performance and contribution to Islamic

financing, DIB received the Best Islamic Bank in the Middle East
Award (2006) by both Euromoney's Islamic Finance Weekly and
Gulf Wealth Forum. DIB has also been awarded the Bank of the
year (UAE) at the 2006 Banker Awards.
DIB has not only been at the forefront of innovation but has
excelled every step of he way. With the launch of Al Islami
Internet Banking, DIB has re-affirmed its commitment to promote
and develop Islamic banking in line with the requirements of the
modern age. For these efforts, DIB received the Golden Trophy at
the UAE Web Awards in 2006. DIB is also the first to offer a
mobile SMS messaging service in both Arabic and English.
Moreover, DIB became the first bank in the Middle East to
introduce Internet Protocol (IP) for its Visa card operations.
Dubai Islamic Bank
With path-breaking vision and bold strategies, DIB aims to

enhance its status as a world leader committed to the goal of
providing "World Class Banking." a)Sukuk Powerhouse of the
World Sukuk is a hallmark of DIB’s product innovation
capabilities. The development of Sukuk (Islamic bonds) has
earned DIB several awards including Banker Middle East Industry
Award for Best Bank and Best Product Innovation (2006).
DIB is honoured to have successfully led to manage the world's

first airline Sukuk for the Emirates Group. This seven year Sukuk
Al Mushtaraka valued at US $550 managed to attract investors’
participation from Europe and the Far East.
Based on its outstanding performance DIB has been awarded the

largest Sukuk issue in the history of Islamic Banking world over
for general funding and expansion needs of Dubai and Jebel Ali
Ports. The US $2.8 billion issue is being lead-managed by DIB and
is part of a large financing package being arranged at a time
when the ports' operator is bidding to become one of the world's
largest. The 2-year bullet tenor Sukuk is also the first convertible
Sukuk ever to be issued.
This deal earned DIB the Governor's Award for Most Innovative
Product (Sukuk) at the Kuala Lumpur Islamic Finance Forum
2006. The Sukuk was also dubbed the Middle East Debt Capital
Markets' Deal of the Year by Euromoney International
FinancialReview.
DIB has also co-managed Pakistan's first Sovereign Islamic Sukuk

issue. This US $600 million received a tremendous response from
the investors and consolidated the status of DIB as an Islamic
Sukuk powerhouse.
Dr Ashfaque Hasan Khan, Economic Advisor to the Ministry of

Finance in Pakistan, has particularly acknowledged the bank's
participation and significant contribution to the success of the
transaction.
The credit rating assigned to DIB by Standard and Poor's is 'A'

long-term and 'A1' short-term for the year 2006. The DIB has also
been assigned an A1/Prime 1 ranking by Moody's. The DIB aims
to maintain the same high standards set for product development
Dubai Islamic Bank
in the coming years. b)Ensuring Sharia Compliance To adhere

to traditional Islamic values and ethics, the DIB relies on the
expertise of scholars of high repute with extensive experience in
law, economics and banking systems.
The members of DIB's Fatwa & Sharia Supervision Board

specialize in law and finance as prescribed by Islamic code. The
Board is appointed by the DIB's General Assembly and ranks
above the Board of Directors.
The DIB's board supervises the development and creation of

innovative Sharia-compliant investment and financing products
and services to ensure that all the transactions are free from riba
(interest) and all other Shari’a repugnancies. Thorough
professionalism and a stringent compliance to rules have made
DIB the pioneering organization to practice Islamic finance in its
true letter and spirit.
DIB also contributes to Islamic Banking and Finance seminars,

conferences, exhibitions, workshops and studies such as those on
Islamic Retail Banking to disseminate information and educate
the masses on Islamic banking. c)More Than a Bank DIB takes
pride in its efforts to expand the scope of Islamic funding by
focusing on financing capital intensive sectors such as power,
airlines, transportation, telecommunication, and real estate
through common Ijara (leasing) facilities at both the local and
regional levels. DIB has been financing landmark properties
across the UAE such as the Jumeirah Beach Residence and the
Dubai International Airport.
Deyaar, a 100% subsidiary and real estate arm of DIB, is the

largest and most successful real estate company headquartered
in Dubai. Deyaar acquires, develops, rents and manages real
estate throughout the GCC. Working with both large and small
investors, Deyaar takes pride in building homes and not houses.
Tamweel, another flagship subsidiary of DIB, is the leading home

finance service provider in the UAE. It is the only UAE based
company offering Islamic home financing. The company has
financed property worth over Dirham 7 billion and was recently
converted to a Public Joint Stock Company with overwhelming
demand subscriptions exceeding the required amount by 485
times.
Dubai Islamic Bank
Products
 Current Account
 Savings Account
 Fixed Deposit
 VISA Debit Card
 Home Finance
 Auto Finance
 Priority Banking
CURRENT ACCOUNT
Based on the Wadi’a contract, the Current Account offers users

safe keeping of their cash deposits against the Bank’s guarantee
to provide the depositor his funds on demand. However, the
depositor permits DIBPL to use or invest his money in its Sharia
compliant investments and the Bank bears all risks related to the
use or investment of those funds. Hence, the Current Account is
neither entitled to investment profit nor does it bear any risk.

Dubai Islamic Bank
The Current Account is offered in the following currencies:

o Pak Rupees
o US Dollar
o UK Pound
o EURO
o Japanese Yen
The Current Account can be opened with as low as PKR 1000. In
case of Foreign Currency Account, the Bank shall determine the
minimum level from time to time.
SAVINGS ACCOUNT
More flexible. More convenient. More innovative. The Dubai

Islamic Savings Account is truly all you'll ever need. It is an all-in-
one account designed to meet all your financial needs. Round the
clock, convenient access to your funds, Halal profits and World
Class service!
By providing your funds through the Dubai Islamic Savings
Account you authorize the Bank (Investment Manager) to invest
your funds on the basis of unrestricted Mudaraba contract
according to the principles of Sharia. Profits earned are shared on
the basis of investment proportion.
The Savings Account is offered in:

o Pak Rupees
o US Dollar
o UK Pound
o EURO
o Japanese Yen
The Savings Account can be opened with as low as PKR 1,000. In
case of Foreign Currency Account, the Bank shall determine the
minimum level from time to time. The Savings Account entitles its
holder to a share of the Mudarba pools profit as long as its
deposits remain above the minimum balance requirements for
the account.

Dubai Islamic Bank
FIXED DEPOSIT
Looking for investments with an excellent mix of short and long

term goals? One that offers the potential to earn high returns the
Islamic way? Well, look no further, our Dubai Islamic products are
the wise financial decision you need to make.
By investing in the Dubai Islamic Fixed Deposit Account the

Account Holder (fund provider) authorizes the Bank (Investment
Manager) to invest his funds on the basis of unrestricted
Mudaraba contract under the principles of Sharia. The Bank
invests these deposits in its common pool with other deposits and
the shareholders’ equity. The net profit on the common pool is
distributed amongst the shareholders and depositors, taking into
consideration the tenor, amount of the deposit and profit
payment frequency for the account.
At Present the Account Holders have the option of investing in

Pak Rupees Only.
The following table lists the various investment options available
to the customer:
Tenors Monthly profit payment Quarterly profit payment Profit at maturity
1 Month NA NA Available
1 year Available Available Available
2 years Available Available Available
VISA DEBIT CARD
Introducing The First Islamic Visa Debit Card in Pakistan Globally

Accepted Shari'a Complaint Card
Open an account with us and get your Visa Debit Card to start
enjoying the following benefits!
Dubai Islamic Bank
Global Acceptance
The DIBPL Visa Debit Card is linked with the global Visa network
allowing you to access your account from over 24 million
merchants and one million ATMs around the globe. You also have
the flexibility of using this card at all 1Link and MNET ATMs in
Pakistan giving you instant access to your bank account any time
of the day or night.
Convenience
Using your Visa Debit Card is quicker than visiting a bank, safer
than carrying cash and easier than writing cheques. With your
card, you have your bank account in your pocket.
Unlimited number of Supplementary Cards
You can have an unlimited number of Supplementary Cards

issued against Visa Debit Card and have the freedom of giving
supplementary cards to as many people as you wish. Your daily
account and transaction limits will be shared between all cards
that have been issued against your bank account.
ATM Cash Withdrawal
Your Visa Debit Card allows you to withdraw up to Rs. 50,000 per
day at any ATM across Pakistan. You can also withdraw the
equivalent amount in foreign currency at an international ATM
wherever the PLUS sign is displayed.
Funds Transfer across Accounts
You can use your Visa Debit Card to transfer funds across
accounts. You daily limit for this transaction is set at Rs. 300,000.
Balance Inquiry
Your Visa Debit Card can be used to check your account balances
an unlimited number of times at any ATM in Pakistan or at over 1
million ATMs around the world!

Dubai Islamic Bank
Mini Statement
You can check your account balance through a mini statement at

DIBPL ATMs. This will give you details of the last 5 transactions
carried out on your card.
Global Customer Assistance Services
DIBPL Visa Debit Card users can receive global assistance 24

hours a day, 7 days a week from VISA Global Customer
Assistance Services (GCAS) while traveling overseas. This service
can be used for lost/stolen card reporting or any other urgent
queries. Please click here to see an updated list of GCAS
numbers.
Zero Loss Liability
If your card is lost/stolen, immediately call us at Dubai Islamic

Phone Banking on 111-786-DIB (342) to report the loss/theft.
Once you have reported the lost/theft to the bank, we will bear
the financial liability for any transactions conducted on your card
after your call.
HOME FINANCE
Dubai Islamic Home Finance is the key to your dream home and
we are eager to put this key in your hands. Using the Musharaka
cum Ijara model, the Bank enters into a partnership with you and
helps you in fulfilling your dream of owning a home quickly,
conveniently and in a fully Shariah compliant manner. Whether
you want to buy, renovate or simply transform your present
home finance of any other bank, DIBPL’s would be the best
Shariah compliant alternative.
Currently Dubai Islamic Home Finance is offering three product

variants:
o Home Purchase.
o Purchase of undivided share (Home Renovation).
o Purchase of undivided share of property at other bank
(Balance Transfer).
Dubai Islamic Bank
AUTO FINANCE
It's time you drove your car with pleasure and peace of mind!
Dubai Islamic Auto Finance offers a world class auto finance

facility that enables you to get a car quickly, conveniently and in
a fully Sharia compliant manner. Using Musharaka cum Ijara
model to finance your car, steer yourself towards peace of mind
and fulfillment of your desire.
DUBAI LOUNGE
We welcome you to our Dubai Lounge – Priority Banking, where a

world of luxury, convenience and financial innovation awaits you.
Here bring you an array of specialized products & services to
fulfill all your financial needs.
Our special investment products and financial advisory service

ensure that you are not left dissatisfied.
Enjoy the pleasure of Priority Banking with 100% Sharia

compliant banking facilities.
Services
 Internet Banking
 Phone Banking
 Lockers
 Schedule of Charges
DUBAI ISLAMIC INTERNET BANKING

Dubai Islamic Bank
No more waiting in queues. No worrying about bank timings

either, because now, DIBPL brings banking services to your
doorstep. Free yourself from every hassle with our new Internet
banking facility. At DIBPL, we make sure you spend less time
banking and more time enjoying life! Enjoy instant access to your
account funds, from anywhere in the world and at anytime of the
day.
Features
Account Related
• View your balance summary. Know where things stand with

a glance at the figures!
• View your Account Statements. You can view them online,
download them or email to your account.
• View status of Processed and Pending Cheques.
• Open new accounts.
• Open Fixed Deposit Accounts.
• Order new ATM/Visa Debit Card.
• Block your Visa Debit Card.
Fund Transfers and Payments
• Transfer funds between your accounts with DIBPL.

• Transfer funds to another DIBPL customer.
• Foreign Currency Transfer.
Demand Drafts and Cheques
• Have Pay Orders and Demand Drafts made.

• Order Cheque Books.
• Block Cheques that you have issued.
Request opening of new Accounts.
• Request for new Visa Debit Card.

• Apply for Fixed Deposit Accounts.
• Issue standing instructions.
• View Consumer Finance payment history and next
installment due date.
Customer Services

Dubai Islamic Bank
• Change PIN
• Lodge Complaints and View the status of your complaint.
• Set personal daily and monthly online transaction limits.
• View Internet Banking Session summary and Internet
Banking Account Activity.
• Personalized home page and internal pages.
Payee List
• Add a new payee.

• List all funds transferred or received from a particular payee.
PHONE BANKING
DIBPL has setup a state-of-the art 24/7 Phone Banking Unit where
we do our best to provide quality services and financial solutions
for our esteemed customers. Our highly trained Phone Banking
Officers are available 24/7 to assist and provide you the following
services:
• Account Queries.
• Balance Inquiry.
• Address & Contact Number Change.
• ATM Visa Debit Card Activation.
• Card Cancellation.
• Damaged Card Replacement.
• Lost / Stolen Card Replacement.
• Name Correction (ATM / Debit Card).
• Personal Data Correction.
• ATM PIN Regeneration.
• Statement Generation.
• General Information about.
o Account opening information (current, savings & fixed
deposit accounts).
o Auto Financing.
o Home Financing.
o SME.
LOCKERS

Dubai Islamic Bank
DIBPL is pleased to offer locker services to its customers. Our

customers can lease a locker for the safekeeping of their
valuables for complete peace of mind. For further information,
customers are requested to contact us at 111-786-DIB (342).
Sizes The following Locker sizes are being offered at DIBPL:
Dimensions (Height x Width x

Size
Depth)
8 inches x 7 ½ inches x 20
Small
inches
Medium 8 inches x 15 inches x 20 inches
15 ½ inches x 15 inches x 20
Large
inches
Cost Customers are required to pay a security deposit of Rs.

2,000 at the time of locker issuance. This security deposit is
refundable once the customer discontinues the service. The
yearly rentals with respect to the size of the lockers are as
follows:
Size Rental (Per Year)

Small Rs. 2,500
Medium Rs. 3,500
Large Rs. 5,000
Timings You can access your lockers during our banking hours:
Days Timings
Monday to Thursday 9:00am to 5:00pm

9:00am -12:30 pm, 3:00pm till
Friday
5:00pm
Saturday 9:00 am to 1:30pm
Locker Insurance All lockers at DIBPL are insured as follows:
Size Limit Per Locker
Small Rs. 500,000

Medium Rs. 1,000,000
Large Rs. 1,500,000
Dubai Islamic Bank
Who is Eligible
• Lockers will only be provided to account holders of DIBPL.

• Locker will be available to individual account holders only
and will not be available for companies whether public or
private, sole proprietorship, trusts, clubs and other
organizations.
• The locker customer should meet the minimum average
balance requirement of Rs. 250,000 or above in his/her
account for acquiring a locker. No locker will be leased to a
customer maintaining an average account balance of less
than Rs. 250,000.
• A maximum of 4 people will be allowed to operate the
locker; one of these operators must be an account holder.
However, anyone can operate the locker independently.
• Minors would not be allowed to co-operate the locker.
• Locker lease facility will be made available on first come first
served basis.
• Preference would be given to those account holders who
maintain an account with the “locker branch”. However
DIBPL Ltd would make every effort to accommodate all
customers regardless of their home branch.

Dubai Islamic Bank
Role of Islamic Banks in

Economic Development of
Country
Islamic banks, while functioning within the framework of Shariah,
can perform a crucial task of resource mobilization, their efficient
allocation on the basis of both Sharing (Musharaka and
Mudaraba) and non-PLS (trading & leasing) based categories of
modes and strengthening the payments systems to contribute
significantly to economic growth and development. Sharing
modes can be used for short, medium and long-term project
financing, import financing, pre-shipment export financing,
working capital financing and financing of all single transactions.
In order to ensure maximum role of Islamic finance in
development of the economy it would be necessary to create an
environment that could induce financiers to earmark more funds
for Musharakah/Mudarabah based financing of productive units,
particularly of small enterprises.
The non-PLS techniques, as acceptable in the Islamic Shariah, not

only complement the PLS modes, but also provide flexibility of
choice to meet the needs of different sectors and economic
agents in the society on the basis of their risk profile. Trade-
based techniques like Murabaha with lesser risk and better
liquidity options have several advantages vis-à-vis other
techniques but may not be as fruitful in reducing income
inequalities and generation of capital goods as participatory
techniques. Ijarah related financing that would require Islamic
banks to purchase and maintain the assets and afterwards
dispose of them according to Shariah rules, require the banks to
engage in activities beyond financial intermediation and can be
very much conducive to the formation of fixed assets and
medium and long-term investments.
Salam has a vast potential in financing the productive activities in

crucial sectors, particularly agriculture, agro-based industries and
the rural economy as a whole. It provides incentive to enhance
production as the seller would spare no effort in producing, at
least the quantity needed for settlement of the loan taken by him
as advance price of the goods. Salam can also lead to creating a
Dubai Islamic Bank
stable commodities market especially the seasonal commodities

and therefore to stability of their prices. It would enable savers to
direct their savings to investment outlets without waiting, for
instance, until the harvesting time of agricultural products or the
time when they actually need industrial goods and without being
forced to spend their savings on consumption.
On the basis of the above it can be said that supply and demand
of capital would continue in an interest-free scenario with
additional benefit of greater supply of risk-based capital
alongwith more efficient allocation of resources and active role of
banks and financial institutions as required in asset based Islamic
theory of finance. Islamic banks can not only survive without
interest but also could be helpful in achieving the objective of
development with distributive justice by increasing the supply of
risk capital in the economy, facilitating capital formation, and
growth of fixed assets and real sector business activities.
Banks might engage in fund and portfolio management through a

number of asset management and leasing & trading companies.
Such companies/entities can exist in the economy on their own or
can be an integral part of some big companies or subsidiaries, as
in the case of Universal Banking in Europe. They can manage
Investors Schemes to mobilize resources on Mudarabah basis and
to some extent on agency basis, and use the funds so collected
on Murabaha, leasing or equity participation basis. Subsidiaries
can be created for specific sectors/operations, which would enter
into genuine trade and leasing transactions. Low-risk ‘Funds’
based on short-term Murabaha and leasing operations of the
banks in both local as well as foreign currencies would be best
suited for risk-averse savers who cannot afford possible losses in
PLS based investments. Under equity based Funds, banks can
offer a type of equity exposure through specified investment
accounts where they may identify possible investment
opportunities from existing or new business clients and invite
account-holder to subscribe. Instead of sharing in the bank’s
profit, the investors would share the profits of the enterprise in
which funds are placed with the bank taking a management fee
for its work. Banks can also offer open-ended Multiple Equity
Funds to be invested in stocks.
Small and medium enterprises (SME) sector has a great potential

for expanding production capacity and self-employment
opportunities in the country. Enhancing the role of financial
Dubai Islamic Bank
sector in development of SME sub-sector could mitigate the

serious problems of unemployment and low level of exports. The
banks may introduce ‘SME Financing Funds’ with various
geographical locations. The corporate sector and the commercial
banks may set up a network of such Funds under the aegis of
SECP by establishing institutions under syndicate arrangements
or otherwise.
Dubai Islamic Branches

Karachi, 9th March, 2009: Mr. Khalid A. Kamda, Chairman of the
Board of Directors DIB Pakistan chaired the Board Meeting of DIB
Pakistan Limited to review the bank’s performance and formulate
framework for future operations and expansion in Pakistan. The
meeting was attended by Fahad Bin Fahad, Vice Chairman DIB
Pakistan; Junaid Ahmed Chief International Head DIB; Saad
Zaman, Deputy CEO DIB Capital; M. A. Mannan, CEO DIB Pakistan
and other directors of the board.
Mr. Khaled Al Kamda, Chairman, Board of Directors, Dubai Islamic

Bank said "One of the key strengths of our consumer banking
business has been our mortgage and auto product performance -
DIBPL has been the number 1 issuer of consumer products. Our
prudent and innovative credit and risk management policies have
led to a quality asset portfolio and have resulted in sustained
business growth despite turbulent economic conditions. 8 new
branches were opened and customer base has grown to over
40,000. The corporate and investment banking business
exceeded its targets and this performance has been recognized
in the form of prestigious awards like "Sovereign Deal of the
Year" and "Pakistan deal of the Year" by Islamic Finance News for
the consortium-led deal of Pakistan Domestic Sukuk Company."
Addressing the occasion, CEO DIB Pakistan, M. A. Mannan said:

“DIBPL is running profitable operations in Pakistan since the last
quarter of 2008, and this positive trend is expected to continue
for the year 2009. DIBPL achieved 58% growth in deposits and
Dubai Islamic Bank
59% in financing during 2008. We closed the year at an asset

base of over Rs. 30 billion, deposits of over Rs. 25 billion and a
network of 25 strategically placed branches. We are confident
that DIBPL will achieve greater milestones during the coming
year.”
The board meeting was followed by a stakeholder reception

attended by Shaukat Tareen, Advisor to PM on Finance; Saleem
Raza Governor SBP; Pervaiz Said, Director Islamic Banking and
Advisor to Governor SBP and other distinguished guests from the
banking and financial sector, various local and multinational
companies and academia.
Islamic Banking Global Scenario

Over the last three decades Islamic banking and finance has
developed into a full-fledged system and discipline reportedly
growing at the rate of 15 percent per annum. Today, Islamic
financial institutions, in one form or the other, are working in
about 75 countries of the world. Besides individual financial
institutions operating in many countries, efforts have been
underway to implement Islamic banking on a country wide and
comprehensive basis in a number of countries. The instruments
used by them, both on assets and liabilities sides, have
developed significantly and therefore, they are also participating
in the money and capital market transactions. In Malaysia,
Bahrain, Pakistan and a few other countries of the Gulf, Islamic
banks and financial institutions are working as a system parallel
with the conventional system.
Bahrain with the largest concentration of Islamic financial

institutions in the Middle East region, is hosting about 30 Islamic
financial institutions dealing in diversified activities including
commercial banking, investment banking, offshore banking and
funds management. It pursues a dual banking system, where
Islamic banks operate in the environment in which Bahrain
Monetary Agency (BMA) affords equal opportunities and
treatment for Islamic banks as for conventional banks. Bahrain
also hosts the Liquidity Management Centre (LMC), the
International Islamic Financial Market (IIFM) and the General
Dubai Islamic Bank
Council for Islamic Banks and Financial Institutions (GCIBFI) to

coordinate the operations of Islamic banks in the world. To
provide appropriate regulatory set up, the BMA has introduced a
comprehensive prudential and reporting framework that is
industry-specific to the concept of Islamic banking and finance.
Further, the BMA has pioneered a range of innovations designed
to broaden the depth of Islamic financial markets and to provide
Islamic institutions with wider opportunities to manage their
liquidity.
Another country that has a visible existence of Islamic banking at

comprehensive level is Malaysia where both conventional and
Islamic banking systems are working in a competitive
environment. The share of Islamic banking operations in Malaysia
has grown from a nil in 1983 to above 8 percent of total financial
system in 2003. They have a plan to enhance this share to 20
percent by the year 2010. Bank Negara Malaysia (BNM) has
announced to issue new Islamic Bank licences to foreign players.
The Financial Sector Master plan maps out the liberalisation of
Malaysia's banking and insurance industry in three phases during
the next decade. It lists incentives to develop the Islamic financial
sector and enlarge its market share to 20 percent, from under 10
percent now. A dedicated high court has been set up to handle
Islamic banking and finance cases. However, there are some
conceptual differences in interpretation and Shariah position of
various contracts like sale and purchase of debt instruments and
grant of gifts on savings and financial papers.
In Sudan, a system of Islamic banking and finance is in operation

at national level. Like other Islamic banks around the world the
banks in Sudan have been relying in the past on Murabaha
financing. However, the share of Musharaka and Mudaraba
operations is on increase and presently constitutes about 40
percent of total bank financing. Although the Islamic financial
system has taken a good start in Sudan, significant problems still
remain to be addressed. Like Sudan, Iran also switched over to
Usury Free Banking at national level in March 1984.
Owing to the growing amount of capital availability with Islamic

banks, the refining of Islamic financing techniques and the huge
requirement of infrastructure development in Muslim countries
there has been a large number of project finance deals in the
recent past particularly in the Middle East region. Islamic banks
Dubai Islamic Bank
now participate in a wide financing domain stretching from

simple Shariah-compliant retail products to highly complex
structured finance and large-scale project lending. These
projects, inter alia, include power stations, water plants, roads,
bridges and other infrastructure projects. Bahrain is the leading
centre for Islamic finance in the Middle East region. The
establishment of the Prudential Information and Regulatory
Framework for Islamic Banks (PIRI) by the BMA in conjunction
with AAOIFI has gone a long way towards establishing a legal and
regulatory framework to meet the specific risks inherent in
Islamic financing structures.
The BMA has signed MoU with the London Metal Exchange (LME)
to pool assets to develop and promote Shariah compliant
tradable instruments for Islamic banking industry. The
arrangement is seen as a major boost for industry’s integration in
the global financial system and should set the pace for
commodity-trading environment in Bahrain. BMA has also
finalized draft guidelines for issuance of Islamic bonds and
securities from Bahrain. In May 03, the Liquidity Management
Centre (LMC) launched its debut US$ 250 million Sukuk on behalf
of the Government of Bahrain.
National Commercial Bank (NCB) of Saudi Arabia has introduced

an Advance Card that has all the benefits of a regular credit card.
The card does not have a credit line and instead has a prepaid
line. As such, it does not incur any interest. Added benefits are
purchase protection, travel accident insurance, etc and no
interest, no extra fees with no conditions, the card is fully Shariah
compliant. It is more secure than cash, easy to load up and has
worldwide acceptance. This prepaid card facility is especially
attractive to women, youth, self employed and small
establishment employees who sometimes do not meet the strict
requirements of a regular credit card facility. Saudi Government
has also endorsed an Islamic-based law to regulate the kingdom's
lucrative Takaful sector and opened it for foreign investors.
In Britain, the Financial Services Authority has issued Islamic

banking license to the Islamic Bank of Britain, which has been
sponsored by Gulf and UK investors. The United States of America
has appointed Dr. Mahmoud El Gamal, an eminent
economist/expert on Islamic banking to advise the US Treasury
and Government departments on Islamic finance in June 2004.
Dubai Islamic Bank
Both US and Britain have over two dozens of Islamic financial

institutions each for providing Riba free financing facilities to their
Muslim communities.
Current Account
The Current Account is offered in Pak Rupees, USD, GBP, EUR, JPY
and any other approved currency by the central Bank/Policy of
the Bank. However, the minimum initial deposit requirement shall
vary for each of the above categories as determined by the bank
from time to time. However, the minimum initial deposit (opening
deposit) requirement shall vary for each of the above categories
of the currencies.
2. Subject to availability of sufficient balance and, in case

of foreign currency, the regulatory restrictions, the depositor
Dubai Islamic Bank
is free, at any time, to withdraw from its Current Account

any amount.
3. There is no minimum amount restriction for
withdrawing money at the counter or using cheques or
making subsequent deposits.
4. The depositor is entitled to certain privileges as per
the product policy.
5. The statement of account can be generated
monthly/quarterly/semi-annually and annually.. However,
duplicate statements may be provided, if the depositor so
requests subject to applicable fees.
6. All persons (individuals, corporate entities, firms,
societies, clubs, government originations, statutory bodies /
corporations, public and private institutions, etc.) are,
subject to the terms and conditions, eligible to open the
Current Account)
7. The Bank is not obliged to pay any profit on such
accounts. Likewise the customer may not bear any loss.
8. The Bank can open following types of Current
Accounts.
a) Individual or Joint Account

b) Minor’s Account
c) Purdah Observing Ladies Account
d) Illiterate/Photo Account.
e) Sole Proprietorship Account
f) Partnership Account
g) Limited Liability Company Account.
h) Association, Society, Educational
Institutes, Club Account
i) Trust Account
j) Executors and Administrators
Account.
k) Agent’s Account.
a) Individual or Joint Accounts:
Current account can be opened for individuals provided the

customer satisfies the conditions for account opening (mentioned
in requirements of AOF). The name and address of Next of Kin will
be noted in relevant column of AOF so that the Bank may
communicate in case of no operation in the account for a period
of five years.

Dubai Islamic Bank
The AOF contains a provision for the customers to indicate the

authority of each party to operate the account and the effect of
the death of any of the account holders will have upon the
account. Requisite portion of the AOF will be signed by all the
joint account holders and required mode of operation viz.
‘either/all’ will be marked. When the balance of a joint account is
payable to either party or survivor, the Specimen Signature Card
should bear note in red ink to reflect the arrangement.
In the event of any of the joint account holders becoming

insolvent, all operations in the joint account will be monitored
carefully and advice to the solvent account holders to close this
account and open a new account and operate accordingly.
In the event of death of any joint account holder, the survivor or

survivors shall be requested to close the old account and open a
new account in the name(s) of the survivor(s).
Documentation Required: In addition to the Banking Service

Agreement and Account Opening Form
a) Attested Photocopy of computerized

national identity card (CNIC) or passport
(along with original for verification purpose)
of the individual to be taken.
b) Incase CNIC does not contain a

photograph then any other documents such
as NICOP/Driving License/Job
Card/Passport/Pakistan Origin Card
(Annexure ACT-M) that contains a
photograph to be taken. Incase no other
photo ID is available then the account holder
should be requested to provide two recent
Passport size Photographs duly attested at
the back by the same person who has
attested the CNIC of the account holder.
c) In case of Salaried Person, attested

copy of Service Card, or any other acceptable
evidence of Service, including but not limited
to a certificate of employer.
Dubai Islamic Bank
d) In case of self employed, visiting card or

any other proof should be obtained.
e) In case of an illiterate person, a

passport size photograph in addition to the
thumb impression (right and left thumbs)
on the specimen signature card.
b) Minor’s Account :
An account in the name of minor can be opened by his/her parent

or guardian. The title of account shall be in the following form:
Mohammad Faheem (Minor)/Mohammad Nadeem(Guardian)
The date of birth shall be recorded on AOF supported by

evidence, such as attested copy of Birth certificates/School
Certificate.
Care should be exercised in the operation of Minor Accounts.

Withdrawal should not be allowed more than the available credit
balance in the account Banks will not provide any type of
financing in Minor Accounts. As incase of debit balance ,the Bank
cannot resort any legal action against the minor in respect of any
Limit that may arise in the account which is not repaid. Third
party cheques are not to be collected in minor’s account.
Special instruction will be noted on AOF and signature card that

‘Guardian will operate the account until the minor attains
majority’ (Annexure ACT-Q). However, when the minor attains
majority a new account will be operated either in the name of the
‘major’ or as a ‘Joint account with Guardian’ to be introduced by
the Guardian or another account holder of the branch.
Documentation Required:
a) Attested Photocopy of CNIC or passport
(along with original) of the Guardian.
b) Attested Form ‘B’ or Birth/School Certificate
of the Minor.
c) Purdah (Veil) observing Ladies:

Dubai Islamic Bank
Account of Purdah (Veil) Observing Ladies who are also illiterate

will not be opened under any circumstances. Account of Purdah
Observing Ladies who can read and write, may be opened only
after having an introduction of respectable customer, it is
suggested that such ladies may be requested to open account
with a literate male who operate upon the account or such a lady
may issue a duly executed Power of Attorney to open and
operate the account. Purdah observing ladies who wish to open
an account may be handled (upon request) by female staff and
the account should be opened after verification by the female
staff.

a) Attested Photocopy of Computerized
National Identity card (CNIC) or Passport (along
with original for verification purpose)) of the
individual to be taken.
b) Incase CNIC does not contain a photograph
then any other documents such as Driving
License/Passport/Pakistan Origin Card that
contains a photograph to be taken. (Annexure
ACT-M)
c) In case of Salaried Ladies, attested copy of
Service Card, or any other acceptable evidence of
Service, including but not limited to a certificate of
employer.
d) In case of self employed, visiting card or
any other proof should be obtained.
d) Illiterate/Photo Account:
Photo account holder(s) have been categorized into the following:
a) Persons who are illiterate.(Use Thumb

Impression as signatures)
b) Persons who sign in any vernacular language
(Annexure ACT-K) i.e. Gujrati, Arabic etc.
c) Persons who can sign in English but whose
signature is shaky which cannot be verified from
Specimen Signature held.

Dubai Islamic Bank
In case of Illiterate account, the Right and Left Hand Thumbs

(RLHT) impression will be recorded on the AOF and the Specimen
Signature Card before the opening of the account. The RLHT will
be attested by the Account Opening Officer on AOF and Signature
Card. A notation in red ink will be made on the Signature Card
‘RLHT’ (Annexure ACT-B) to be put by the customer at the time of
operation in presence of a bank officer who will attest. On the
customer’s photographs, his/her account number and his/her
name will be written which will also be attested by the Account
Opening Officer under Bank’s stamp.
In an Illiterate/Photo account, the branch asks the customer to

provide photographs which will be attached with AOF & Signature
Card. In addition customer will be asked to sign a letter duly
amended to cater to the inclusion of those who are literate but
sign in the vernacular or have shaky signature. The cheque book
issued to such customers i.e., each leaf of the cheque book will
carry the notation “Photo Account” which will be applied by a
rubber stamp.(Annexure ACT-J). The cheque drawn by such
person(s) will only be en-cashed at bank’s counter upon physical
presence of the account holder him/herself. Cheques bearing
notation “Photo Account” presented by third party or in clearing
will not be honoured / accepted.

a) Attested Photocopy of Computerized National

Identity card (CNIC) or Passport (along with original) of
the individual to be taken.
b) Incase CNIC does not contain a photograph then
any other documents such as Driving
License/Passport/Pakistan Origin Card/Job Card that
contains a photograph to be taken. Incase no other
photo ID is available then the account holder should be
requested to provide her two recent Passport size
Photographs duly attested at the back by the same
person who has attested the CNIC of the account
holder.
c) In case of Salaried Person, attested copy of
Service Card, or any other acceptable evidence of
Service, including but not limited to a certificate of
employer.
Dubai Islamic Bank
d) In case of self employed, visiting card or any

other proof should be obtained.
e) Two passport size photograph of the account
holder besides taking his right and left thumb
impressions on the specimen.
e) Sole Proprietorship Account:
The account to be opened in the name of the business. The

owner has to make a request for opening of account on his/her
business letter head with rubber stamp of the business. In case
owner gives power to operate account to a third person such
instruction should also be given on the letter head of business
and identification documents of authorized signatory should also
be attached.
In case of death of the Proprietor, all operations in the account

shall be stopped and mandatee should not be allowed to operate
the account thereafter as the authority letter by the deceased
Proprietor shall stand lapsed forthwith and the procedure of
deceased account with be applicable.

a) Attested Photocopy of Computerized National

Identity Card (CNIC) or Passport (along with original to
original seen) and affixed the original seen stamp on
photo copy of the Proprietor.
b) Attested Photocopy of National Tax Number
(NTN) along with the original.
c) Request for opening of account on Business
Letter Head with rubber stamp of the business.
d) Declaration of Proprietorship (Annexure ACT-O)
f). Partnership Account:
An original certified/attested true copy of the Partnership Deed

should be obtained on stamp paper (as per law).The Partnership
Deed should be carefully reviewed emphasizing on the following :

Dubai Islamic Bank
a) The Deed allows opening of account with any

bank.
b) The extent and authority of each of the partners
to operate the bank account.
c) The status of the partnership, should any of the
partners withdraw from the partnership either as a
result of retirement, death or bankruptcy the
partnership shall stand dissolved.
d) The partnership is not restricted to a certain
period.
e) Number of directors with their specimen
signatures.
f) Witness.
g) The deed may be Registered or Unregistered.
The signing authorities of the account holding partners stated on

the AOF/Signature Card should be according to the Partnership
Deed. In case of death of a partner, the account should be
marked as “deceased” and the relevant procedure should be
applied. The surviving partners will be asked to close the existing
account upon submission of the death certificate, fresh accounts,
documents and mandates will be obtained in respect of new
account opened. If the deceased partner was authorized to
operate on the account singly, the balance shall be paid to the
heirs/surviving partners as per Court Order.

a) Attested Photocopies of the CNIC and/or

passports of all Partners.
b) Attested True Copy/Notarized (by the Notry
Public) of Partnership Deed duly singed by all the
partners of the firm.
c) Attested Photocopy of the Registration
Certificate with Registrar of Firms. In case the
partnership is unregistered, this fact should be clearly
mentioned on the account opening firm.
d) Authority letter signed by all the partners, in
original, on company’s letter head, in favor of the Bank
authorizing the person to open & operate account in
the firm.

Dubai Islamic Bank
e) Request for opening firm’s account to be taken

on Business Letter Head signed by all the partners
under rubber stamp.
g). Limited Liability/Statutory corporations Company

Account:
A limited liability company may open an account with the Bank

only if it is authorized to do so by a resolution of the Board of
Directors of the company. The Account Opening Form for such
entities is attached as Annexure? The AOF provides for the
submission of the true extract of the Board of Directors resolution
regarding opening/operation of the account with the Bank

a) Certified copies of the resolution of the Board of
Directors authorizing; (i) the opening of the account in
the name of such Company; and (ii) authorizing the
named Authorized Signatory or Signatories to open and
operate the account on behalf of the
Company/Corporation.
a) Certified True Copy/Notarized copy of

Memorandum and Articles of Association.
b) Certified True Copy/Notarized copy of Certificate
of Incorporation.
c) Certified True Copy/Notarized copy of Certificate
of Commencement of Business
d) Attested Photocopy of CNIC and/or passports of
all directors.
e) List of Directors on Form 29 issued by the
Registrar Joint Stock Company.
f) Account Opening Letter on original company
letter head signed by the authorized directors along
with stamps.
g) Copy of Trade License
h) Letter of commencement of Business
h). Association, Club, and Educational Institutions &

Society Account:

Dubai Islamic Bank
An Association/Committee/Society/ Educational Institutions or

Club may open an account with the Bank if so authorized to do so
by its governing body. Certified copy of resolution passed by
Board of Directors for opening account specifying the names of
person authorized to open and operate on the company’s
account.

a) Certified True Copy/Notarized copies of

Certification of Registration.
b) Certified True Copy/Notarized copies of By-
laws/Rules & Regulations.
c) Resolution of the Governing Body/Executive
Committee for opening of account authorizing the
person to operate the account and attested copy of
CNIC of the authorized persons).
d) . An undertaking by the Governing Body/Executive
Committee (or its equivalent) on behalf of the concerned
institution/entity undertaking to inform the Bank of any
changes in the status of the persons authorized to operate
the account.
i). Trust Accounts:
For opening a Trust Account, a Certified True Copy of the Trust

Deed will be retained along with account documentation. It must
be noted that the trustees do not have any authority to delegate
their function to anyone else unless so stated in the trust deed.
Unless otherwise stated in the Trust Deed, all Trustees must sign
all instructions on the account.
Documentation Required In addition to the Banking Service
a) Certified True Copy/Notarized/attested

Photocopy of the Certificate of Registration
b) Attested Photocopy of CNIC of all the trustees.
c) Certified True Copy/Notarized copy of the
‘Instrument of Trust’

Dubai Islamic Bank
d) Duly executed Account Mandate authorizing the

named Authorized Signatory or Signatories to operate
the account on behalf of the Trust.
j). Executors & Administrators Accounts:
Accounts of Executors and Administrators shall not be opened

without prior permission of the COD./HO The AOF shall be signed
by all the Executors or Administrators to whom Probate or Letter
of Administration has been granted. No Power of Attorney or
authority letter given by the Executors or Administrators to third
parties to operate on the account shall be accepted by the Bank.
No transfer of funds from the account of the Estate to the
personal accounts of the Executors or Administrators shall be
allowed. Withdrawal should not be allowed more than the
available credit balance in the account.
Documentation Required In addition to the Banking Service
a) Attested Photocopy of CNIC and / or passports of

the Executors/Administrators
b) Certified Copy of the Letter of Administration or
Probate
c) Signature Card duly signed
d) ATM/Debit Card Application form duly filled and
signed.
K) Government Account
For opening a Government account following documents required

in addition to the banking service agreement and account
opening form.
Banks shall ensure that government accounts are not opened in

the personal names of the Govt. Officials. Any such account,
which is to be operated by an officer of the
Federal/Provincial/Local Government in his/her official capacity,
shall be opened by an officer of the Federal/Provincial /Local
Government in his/her official capacity, shall be opened only on
production of a especial resolution/authority from the concerned
administrative department duly endorsed by the Ministry of
Finance or By concerned Ministry of the Provincial or federal
Government.
Dubai Islamic Bank
a- By-Laws/ Rules and regulations required, Gazette Required.

b- Government Notification name of members of authority (List
of Member)
c- List of member of executive/management committee required
d- Resolution of opening of account & its operations signed by
the authorised members
e- Copies of CNIC of persons authorized to operate on the
account.
k). Agent’s Accounts:
An Account opened by Constituted Attorney shall be opened on

production of duly registered Power of Attorney received under a
covering letter signed by the Principal. The Original Power of
Attorney will be reviewed by the Manager and a copy thereof
attested by Oath Commissioner will be compared by the
Operations Manager and notation made ‘compared with original’
(Annexure J). A stamp bearing bank’s name shall be affixed on
original with the notation “Attested copy retained” (Annexure
ACT-J) signed by the Branch/Operations Manager.
The original will be returned to the Agent and its attested copy
placed along with AOF. Important clauses of the Power of
Attorney shall be scrutinized by the Operations Manager
especially with regard to the opening operations of account
powers.
Withdrawal should not be allowed more than the available credit

balance in the account. It shall be checked that the Power of
Attorney is not conditional on happening of an eventuality. It shall
be verified that the Agent/Manager has specific power to
draw/endorse/accept bills or to delegate his powers to third party.
It shall be insisted that the Power of Attorney is properly
witnessed and registered with Registrar.
Documentation Required
a) Certified True Copy/Notarized copy of the Power
of Attorney
b) Attested Photocopy of CNIC and/or passport of the
Agent and principal

Dubai Islamic Bank
References
http://www.alislami.ae/en/index.htm
http://www.dibpak.com/
Mr. Tayyab Ali (Employee of Dubai Islamic Bank)

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Dubai Islamic Bank

Mohammad Ali Jinnah University 2

Mohammad Ali Jinnah University 3

Pawan Kumar (Sp07-BB-

DIB expanded its branch network from 12 branches in 2002 to 50

Within its corporate banking activities, DIB places special

Mohammad Ali Jinnah University 6

2005. Net profits rose by 47% to AED1.6 billion (USD424.8

Philosophy of Islamic banking and finance

Mohammad Ali Jinnah University 7

Islamic banking system is based on risk-sharing, owning and

The forms of businesses allowed by Islam at the time the Holy

Besides trading, Islam allows leasing of assets and getting rentals

Mohammad Ali Jinnah University 8

History and the Present Strategy

Separate Interest-free counters started operating in all the

deposits on profit and loss sharing basis. Regarding investment of

As from April 1, 1985 all finances to all entities including

The procedure adopted by banks in Pakistan since July 1 1985,

set up, within specified time frame, a Commission for

The Commission for Transformation of Financial System (CTFS)

The CTFS in its Report identified a number of prior actions, which

According to the Commission, prior/preparatory works for

Islamic financial system, launching a massive education and

Industry Status as Of Now

Mohammad Ali Jinnah University 12

As of June, 2006, Meezan Bank, Albaraka Bank, Bank Islami

Major Modes of Islamic Banking

Literally it means a sale on mutually agreed profit. Technically, it

Mohammad Ali Jinnah University 14

Mohammad Ali Jinnah University 16

Dubai Islamic Bank

Islamic banking and finance is now one of the world’s fastest-

In this context, the role of Dubai Islamic Bank is even more

Islamic banking and finance is now one of the world’s fastest-

In this context, the role of Dubai Islamic Bank is even more

centered organisation where close personal service and

The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank

DIBPL has also introduced Priority Banking and Internet Banking,

Mohammad Ali Jinnah University 18

Mohammad Ali Jinnah University 19

Dubai Islamic Bank Global

Despite huge growth in the sector DIB continues to be the

By combining the best traditional Islamic values with high-

For its outstanding performance and contribution to Islamic

With path-breaking vision and bold strategies, DIB aims to

DIB is honoured to have successfully led to manage the world's

Based on its outstanding performance DIB has been awarded the

DIB has also co-managed Pakistan's first Sovereign Islamic Sukuk

Dr Ashfaque Hasan Khan, Economic Advisor to the Ministry of

The credit rating assigned to DIB by Standard and Poor's is 'A'

in the coming years. b)Ensuring Sharia Compliance To adhere

The members of DIB's Fatwa & Sharia Supervision Board

The DIB's board supervises the development and creation of

DIB also contributes to Islamic Banking and Finance seminars,

Deyaar, a 100% subsidiary and real estate arm of DIB, is the

Tamweel, another flagship subsidiary of DIB, is the leading home

 VISA Debit Card

Based on the Wadi’a contract, the Current Account offers users

Mohammad Ali Jinnah University 23

The Current Account is offered in the following currencies:

More flexible. More convenient. More innovative. The Dubai

The Savings Account is offered in: