Emirates Islamic Introduces Groundbreaking Shariah CD Initiative

Emirates Islamic has officially launched the UAE’s inaugural Shariah-compliant Certificate of Deposit (CD) Programme, marking a significant advancement in Islamic banking and financial innovation within the nation.

This newly introduced Islamic CD Programme targets institutional investors, offering a unique opportunity to diversify Islamic money market investments while capitalizing on competitive returns. The programme boasts a total capacity of USD 2 billion and facilitates investments across various currencies and tenors, providing enhanced flexibility for investors.

Moreover, this initiative aligns with Emirates Islamic’s objective to broaden its funding avenues and reinforce its foothold in international financial markets. The bank emphasized that this programme signifies its enduring commitment to crafting innovative Islamic financial offerings and bolstering the UAE’s aspiration to emerge as a global leader in Islamic finance.

Farid AlMulla, CEO of Emirates Islamic, noted that the introduction of the Certificate of Deposit Programme solidifies the bank’s role as a frontrunner in Islamic banking. He highlighted that this undertaking supports the UAE’s ‘We the UAE 2031’ vision, underscoring the bank’s dedication to providing cutting-edge Islamic financial solutions for international investors.

Mohammad Kamran Wajid, Deputy CEO at Emirates Islamic, stated that the new programme aims to enhance liquidity management and deliver tailored financial solutions to clients. He elaborated that it would also assist the bank in attracting a new wave of international investors, consolidating its leadership in Islamic liquidity management as part of the UAE Strategy for Islamic Finance and Halal Industry 2031.

Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, referred to the programme as a milestone in Shariah-compliant liquidity management. He remarked that this product is among the earliest hard currency Islamic CD programmes worldwide, showcasing the bank’s commitment to adapting to evolving market needs through innovation.

Market analysis indicates that the global Certificate of Deposit market is valued at approximately USD 729 billion, projected to grow to nearly USD 1.2 trillion by 2033. Notably, around 46 percent of global CD issuances are denominated in US dollars.

With an increasing appetite for short-term investment tools across global markets and within the GCC region, Emirates Islamic’s pioneering Shariah-compliant CD Programme is anticipated to significantly fortify Islamic capital markets and elevate the UAE’s stature as a premier hub for Islamic finance.