Islamic Banking – Al Masraf

Fully Shari’ah
Compliant Financial Solutions

Islamic Banking Services

About Islami Banking

Islamic Banking, enlightened with the guidance of Islamic Sharia principles, emerged as an alternate financial system that neither gave nor took interest, thereby introducing a fair system of social justice and equality, while satisfying the financial needs of people and retaining high standards of ethics, transparency and a sense of responsibility.


About Al Masraf Al Islami Banking

Al Masraf Islamic Banking aims at providing customers with fully Shari’ah compliant financial solutions with flexibility of choice and maximum suitability of banking channels.

Al Masraf Al Islami Vision to become an innovative and preferred Islamic Banking Financial Partner for all Islamic banking products and services in the region.

Al Masraf Al Islami Mission

  • Become first choice in Islamic Banking for the customers with best-in-class Sharia’s products and services
  • Become first choice to attract, develop and retain high profile employees in Islamic Banking Industry
  • Benefit our investors with sustainable Return on Investment (ROI) and continuous success.
  • Contribute to our society through active participation in the regional economic development through our Islamic Banking unique initiatives.

Our Sharia Supervisory Board

Proff. Jasem Ali Al Shamsi

Chairman of The Committee

Dr. Ali Hussain Ali Al Junaidi

Committee Member


2nd Quarter 2021
Average balance between AED 1 - AED 999,999
Average balance AED 1m to AED 10m

Islamic Banking Educations and FAQ's

The main sources of Islamic shari’a (law) are the principles and teachings of Holy Quran and the practices and teachings (Sunna & Hadith) of Holy Prophet Mohammed (PBUH).
Islamic banking is a fast growing phenomenon in the global financial markets. There has always been a demand among Muslims for financial products and services that conform to the Shari’a (Islamic law). Based on this demand, a number of banks all over the world have started offering products and services that are in compliance with Shari’a.
Rather than choosing for interest as a way of generating wealth, Islamic banking is unique in the way that it supports individuals as well as businesses build tangible and appreciating assets for themselves. This not only leads to prosperity founded on a solid economic base, but also inspires the spirit of entrepreneurship amongst its customers. Islamic banks are based on the unique concept of profit and loss sharing with the customers by way of various Sharia-compliant financing and investment implements.
The main difference between Islamic and conventional is that Islamic banks prohibit interest. Unlike conventional banks, Islamic banks disallow lending money to money but rather promote trade (buy and sell) transactions and partnerships. In Islamic banking, wealth can be generated through legitimate trade and investment. Any gain related to this trading is shared between the person providing the capital and the person providing the expertise.
Al Masraf is a customer-driven financial institution and the reason we provide Islamic products is to serve a genuine financial need amongst our clients. This is again demand driven and a full spectrum of products will be offered to our valued clients.
At Al Masraf, we constantly strive to provide financial solutions that meet the requirements of our customers. Al Masraf offers Islamic banking products/services which combine our financial expertise with your enduring values. Following are the products offered for consumer and corporate segments:
  • Accounts: Current accounts, savings accounts, Short Term Investment Account, Mudarab Term Investment Account and Wakala Investment Account.
  • Personal Banking: Auto Murabaha, Home Finance, Credit Card, Personal Finance and Goods finance.
  • Corporate Banking: Working capital finance, Goods Finance, Fixed assets finance and Equipment finance.
  • Trade Finance: Financing Products, non finance products and Gurarantees.


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. 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.


Ijara 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, Ijara 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 wa iqtina

A contract under which an Islamic bank finances 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 along with profit over the period of lease.


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. A manufacturer or builder aggresses to produce


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 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.

Bai al-Salam

This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be effected unless the goods are in existence at the time of the bargain. But this type of sale forms an exception to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this type of sale are mainly tangible things but exclude gold or silver as these are regarded as monetary values. Barring these, bai salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic banks. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market. This kind of sale (Salam) also used nowadays as a mode of financing that is also called ‘Parallel Salam’.