MUSCAT, 10 March 2013 – Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched an innovative Shari’a compliant current account which has evoked good response.
Meethaq current account is based on the fundamental Islamic principle of Qard (interest free loan) whereby the customer is the lender and the bank is the borrower. Qard (interest free loan) is a contract whereby the principal amount deposited by customers is guaranteed to be repaid by the bank on demand.
Meethaq current account has been developed to provide safety for customer funds by utilising the funds only in Shari’a compliant activities. The current account is ideal for customers who have day-to-day transaction needs and require unlimited access to their account to meet personal or business expenses. The funds are payable on demand without any addition or penalty.
Sulaiman Al Harthy, Group General Manager - Islamic Banking, said: “Meethaq is proud to take the lead in launching a suite of banking products which combine traditional values with modernity. Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which will protect customers and complement the Islamic banking industry. The Meethaq strategy is to attract customers through innovative Shari’a based products and services. The operations are managed by an experienced team, separate from conventional banking.”
Bank Muscat is the first commercial bank in Oman to receive CBO’s approval and begin independent Islamic banking window operations as per the requirements of Islamic banking regulatory framework of CBO. The bank has invested in staff, systems and controls to ensure the service is delivered in a professional, segregated and fully Shari’a compliant manner. Meethaq delivers products and services to meet all financial needs of customers by ensuring true Partnership, Transparency and Trust.
Every Meethaq product goes through the process of Shari’a compliance certification by the Shari’a Supervisory Board and the current account has been created in line with the guidelines of the Central Bank of Oman. The benefits of Meethaq current account include cheque book facility, free monthly statement, free international recognised debit card, 24-hour phone banking, mobile and internet banking.
As the pioneer of Islamic banking in Oman, Meethaq stands out for its independent Shari’a Supervisory Board, separate capital allocation from shareholders’ money, unique risk management tools, complete fund segregation, separate books of account, core banking system which supports Islamic banking operations, stand-alone Islamic banking branches and proper profit distribution mechanism among investment account holders/depositors. The adoption of AAOIFI standards (Accounting & Auditing Organisation for Islamic Financial Institutions) distinguishes Meethaq Islamic banking practices in terms of standardisation of products and services.