Post by : Bianca
Haleem
Emirates Islamic has officially introduced the UAE's first Shariah-compliant Certificate of Deposit (CD) Programme, marking a significant event in the nation's Islamic banking landscape. This initiative is recognized as one of the pioneering programmes in the global Islamic finance arena.
Designed primarily for institutional investors, the new CD Programme aims to offer competitive returns while adhering to Shariah regulations. This move will also assist Emirates Islamic in diversifying its funding avenues and enhancing its footprint in international finance.
The overall size of the programme has been established at USD 2 billion, offering varied investment opportunities across multiple tenors and currencies to enable investors to manage liquidity effectively and diversify their assets.
Farid AlMulla, CEO of Emirates Islamic, expressed that the launch signifies the bank's dedication to financial innovation and aligns with the UAE's aspiration to establish itself as a premier Islamic finance hub under the “We the UAE 2031” initiative.
Mohammad Kamran Wajid, Deputy CEO at Emirates Islamic, noted that the new CDs serve as an added liquidity management tool for clients and investors, helping the bank broaden its product offerings, draw in international investors, and solidify its standing in Islamic liquidity management in accordance with the UAE Strategy for Islamic Finance and Halal Industry 2031.
Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, characterized the programme as a significant advancement in Shariah-compliant liquidity management, emphasizing the bank's commitment to innovation and adapting to the evolving requirements of global financial markets.
Market assessments suggest that the global Certificate of Deposit market is valued at almost USD 729 billion, projected to expand to approximately USD 1.2 trillion by 2033. Currently, around 46 percent of global CD issuances are in US dollars.
There has been a growing demand for short-term investment instruments across the GCC region. Experts believe that Emirates Islamic's new programme will bolster the development of Islamic capital markets, reinforcing the UAE's status as a leading Islamic finance hub globally.
English
