Abu Dhabi Islamic Bank - Ghina Savings Program

Home | About ADIB | Branches & ATMs Locator | Contact Us | عربي

Ghina is an investment account similar to the various Mudharaba based- investment accounts of ADIB; it is identical to the Saving Account, which is based also on Mudharaba; but Ghina account holders would have the right to enter in a draw on some cash prizes, which raised some questions about its permissibility. These concerns were raised to ADIB's Shari'a Executive Committee that approved this program in its below Resolution, which is in line with the 23rd conference of Al Baraka' resolution number 23/2/b about prizes to the various investment accounts.

Resolutions of Al Baraka's 23rd conference 23/2

"b- it is permissible for the bank to give prizes to the investment accounts' holders, as the balances of these accounts are owned by the accounts' holders and the bank is their Mudarib in return for a share of the profits, providing that giving such prizes will not lead to guaranteeing the capital of the Mudharaba or any part of it in case of any loss, as such guarantee of the capital by the Mudarib is not permissible by Shari'a. Also, those prizes must be paid from the funds of the bank, and not from the profits of the investment accounts, as the Mudarib has no right to donate from the funds of the Mudharaba"

This Fatwa is in line with the conditions, which are set forth by ADIB's Shari'a Executive Committee in its following Resolution number (2-2009/2/32):

"The detailed program is permissible by Shari'a, as it is applied to it the normal Saving Account's Terms and Conditions, a part of which is the methodology of profit calculation and distribution, so whatever is paid to the Saving Account shall be paid to this account. Also, the prizes shall be paid - on draw basis - from the shareholders' share in the profit. Moreover, the entrance of the customer in this draw is not a condition in the contract of opening the account (the Mudharaba Contract), therefore, it is not an obligatory commitment by the bank, so, it is left to its sole discretion and whatever the bank might find appropriate."

The ADIB Ghina prizes are awarded at ADIB's discretion and derived specifically from the shareholders' profit

Copyright @ 2009 Abu Dhabi Islamic Bank