The Masjid and Charities Account has specially been designed by the IBB to facilitate the banking services for charitable organizations like Masajid and Madrasah or other charities.
The IBB is the only bank that has developed this account for Muslim and also non-Muslim charities who have great concerns about their banking and the deposits to be used for interest-based transactions and/or unethical investment activities in porn, alcohol, tobacco and weapon industries. The charities can put the money safe and secure and also earn Halal profit on the deposits.
The Masjid and Charities Account is based on the Islamic financing principle of Modharaba.
The money is invested in ethical investment activities and the profit is shared between the bank and the charitable organization. The account can be opened with a small amount even only £1 and the profit is calculated and distributed monthly, based on the daily closing balance of the account. There is no limit on the number of times to withdraw the money and also the money can be withdrawn without any prior notice. The account works like a current account as the money can be withdrawn at any time on demand but it also earns a profit like a saving account.
http://www.islamic-bank.com/business-banking/masjid-charities (Accessed: 31/12/09)
103 4.2.2 European Islamic Investment Bank (EIIB)
The EIIB is a fully Shari’ah compliant investment bank based in London the gateway of Islamic finance in the West. The bank was launched in January 2005 and received the authorization from the UK’s statutory body, Financial Services Authority (FSA) in March 2006 and started the business in April 2006. The bank has a mission to achieve the excellence in provision of the best Shari’ah compliant investment banking products and services in the region.
The products at EIIB are designed to meet the financial needs of investment banking.
Through money market and asset management, the EIIB designed special investment financial products in accordance with Shari’ah principles for the customers who have
£100,000 or over portfolio. EIIB have participated at a senior level in syndicated Murabaha, sukuk and structured trade finance transactions. At EIIB investment products include:
Asset management
Syndicate Financing
Property Investment Funds
Leasing Funds
Structured Product Funds
Hedge Funds
Life insurance products through Takaful companies
UK, European, GCC and Global Equity Funds
All these products are investment financing products for which EIIB works together with other Islamic and conventional financial institutions to create sophistically designed and tailored Shari’ah compliant investment products. The EIIB has a vision to structure and distribute Shari’ah compliant investment products directly where feasible and/or through other authorized financial intermediaries and private banks in the UK, Europe, Middle East and Asia.
http://www.eiib.co.uk/html/asset_management.asp (Accessed: 28/01/10)
104 4.2.3 The Gatehouse Bank
The Gatehouse bank is a newly established fully fledged Shari’ah compliant investment bank based in the City of London. The bank was established in May 2007 and received authorization from FSA (Financial Services Authority) in 2008 to work as a fully Shari’ah compliant investment bank in the UK. The Gatehouse bank is subsidiary of a well recognized and worldwide leading investment company based in Kuwait, The Securities House KSCC.
The bank is anticipating exploring the business opportunities throughout Gulf countries, Europe, North America and South-East Asia.
The Gatehouse Bank is not a retail bank; it is an investment bank which provides various carefully selected financial products approved by their SSC, but all for the sake of investment. The financial business of the bank includes the following activities:
Capital Markets and Syndicated Financing: At gatehouse Bank it includes arranging and structuring Sukuks and management of funds and syndicated financing to Islamic banks.
Real Estate: It includes provision of leverage and equity for the investment opportunities in real estate business in compliance with Shari’ah.
Institutional Wealth Management: It involves assets-based funds, structured products and investment in infrastructure, private equity, real estate and commodities etc.
Treasury Business: The bank focuses on maintaining its internal liquidity requirements utilizing the market opportunities and customer’s demands as defined by the Shari’ah board.
Shari’ah Advisory Services: It involves provision of Shari’ah advisory/consultancy services, audit and compliance, research and training to the highly- valued clients;
investors and also other banking and financial institutions operating in Shari’ah compliance.
Placement
The services and products are purely investment structured financial products and assets-based fund management of high net worth clients and other banks.
http://www.gatehousebank.com/en/our-capabilities (Accessed: 28/01/10)
105 4.2. 4 ABC International Bank Plc UK
Arab Banking Corporation has a long successful working history in the banking industry. The ABC was inaugurated in the year 1980 in Manama, the capital of the Kingdom of Bahrain.
Since its inauguration the bank has extended the banking services to many parts of the world and now (in Dec. 2009) the network of branches has expanded to 21 countries of the world, namely in the MENA and GCC, Europe, America and Asia.
ABC Islamic Bank is a subsidiary of the ABC group which is providing Shari’ah compliant banking services in various Mena and GCC countries. ABC started Islamic banking services in 1987 through ABC Investment and Services Co, which later in 1998 was converted into a fully fledged Islamic bank known as ABC Islamic Bank. In the UK, the bank has a registered a name as ‘ABC International Bank Plc’ and based in London. The Islamic banking and Shari’ah compliant financial products are being offered through Islamic Asset Management (IAM) including Al-Buraq Islamic personal finance services. ABC IB provides a range of asset-backed investments and financial services. Assets specialisations include leasing, real estate and commodities at ABC IB Islamic Asset Management. In the following section, a brief description of the financial products has been given.