DIB, Dnata offer Islamic finance travel funding
THE Dubai Islamic Bank (DIB) has signed an agreement with Dnata to provide Ijara Islamic finance to fund customers’ travel expenses.
The agreement reflects the bank’s commitment to meeting its customer’s needs through a range of innovative Islamic products.
Under the terms of the agreement, DIB will offer finance packages to purchase airline tickets and travel packages from Dnata. The funds would be repaid in instalments over a period that can vary from 6 to 24 months, with a competitive margin.
Saad Abdul Razak, DIB’s deputy chief executive officer, said: “Dubai Islamic Bank is considered one of the foremost banks in the provision of creative services and solutions that go hand in hand with Islamic Shari’a law and satisfy the needs of the bank’s customers. The bank has also recently launched various initiatives that contribute greatly to its position as the leading Islamic bank.”
Rashid Al Noori, Dnata’s senior vice-president, said: “We are proud to partner with Dubai Islamic Bank and we hope that this relationship will evolve. The financial packages offered will benefit our customers, many of whom will have special needs that require a particular Islamic finance solution. This innovative scheme applies to all Dnata Agencies’ travel products and services and we will be promoting this scheme throughout our extensive network of over 50 outlets in the UAE”
Ijara Islamic finance is considered one of the most recent creative Islamic banking services that were launched by the bank in the local market. The service is based on Islamic Shari’a compliant investment to finance the service sectors like education, health, travel, and wedding ceremonies.
The DIB launched its Ijara services at the beginning of last year, and the bank is currently working on providing alternative financing for education, healthcare, travel and tourism. In offering its Ijara services, the bank establishes links with service providers in specialised fields – such as airlines, travel agencies, educational institutions and hospitals – to add to its approved list.