The Dubai Islamic Bank Finance Essay

Dubai Islamic Bank was established in 1975 and in the date of today it is one of the larger banks of Dubai and the country UAE. At the start of 2008, the bank, i.e. Dubai Islamic Bank had 48 branches in the country, and about 100 ATMs. At the end of 2008, DIB had 54 branches, and it is expected that it will open 10 another branches more to have a total of 64 branches by the end of the year 2009. During 2005-2006, the bank went through a significant regrinding effort and now it is so simple to see distinctly their distinctive yellow and green logos. The Bank also has branches in Pakistan. The bank is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank has a reputation as a leader and innovator to maintain the decorum, flexibility and easily approachable of its products and services. In a very short span of time the bank has created good services and products that are setting records for the rest of the sector. (Dub10) The bank is given another name called Al Islami. The bank has a unique feature of being first Islamic bank, a bank that has Islamic values and the technology of the modern banking. The bank has established itself as the leader in the field recognized as one of the most and reputed banks of the country. The bank has set a certain standard rather than the other Islamic banks and that is the reason of its global and international fame. The banking and the finance is included in one of the fastest growing sectors that has more than 300 institutions. The bank is also renowned for its consumer relationship or the customer relationship as it remains true to the customer and rather provides the best opportunity and system of banking and finance to the customer and that may be included as the another point of its global and international fame. (Abo101) Different customers are granted their freedom manipulating the resources and works to be done in the limit for the best profit of both. The bank thinks that the customers are the one that make the goodwill of the bank in the market so rather they fulfill all the needs give proper and comprehensive solutions to the customer and thus meet the financial needs of the customer. He bank has the motto to firstly keep the customers happy in all the regards they can and that is the place they just simply develop a good reputation in the market. (Abo101)

credit risks that the bank faces

So now we come to the risk factor that the bank faces. The risk factor is the credit risk. When it comes to an international global bank the biggest risk that the bank faces is of the credit that is how to get the credit of the customers and for this purpose they plan different strategies.

how does the bank overcome the risk

The bank overcomes the problem by creating different credit cards which thus have an attractive and genuine policy that can influence people and they can thus invest in the bank. The bank has been always active in creating partnerships and alliances at local and international level. The bank has a strategy, which started with the establishment of DIB Pakistan Limited, a wholly newly owned subsidiary of the bank. DIB opened its first representative office in Turkey to improve its access to that market. The facts convey that the bank has too achieved 60 per cent of its stake in Al Khartoum Bank and is also among the parent banks of Emirates and Sudan Bank (ESB). The steps that are taken by the bank have been set as the mark of bankâA¢”šA¬A¢”žA¢s ambitious plans to remove its operations into regional and international markets as part of its overall strategic plan. The bank has also shown its maturity by being appointed to assist in giving specialist financial solutions for big and important developmental projects in the country, one of which led to the world record US$1 billion Islamic bond issue. The issue was arranged for the Government to increase funding for the second phase of the expansion of Dubai International Airport. The bank has always been helping the country in financial conditions and always managed to provide finance for all the big projects of the country. Thus the bank always puts forward some innovative and helpful ideas that could help the country for the future prospects so not only the bank is involved in giving or just put forward the ideas it just goes on to implement them in the proper and sophisticated way. Dubai Islamic Bank (DIB) said, it has recently launched Al Islami Infinite Credit Card, an invitation-only card available exclusively to ultra-high-net-worth clients of the bank. The handcrafted card, has a unique feature of diamond and illustrated with genuine gold calligraphy, gives and provides you lots of privileges, including international concierge services, airport lounge access, travel insurance, purchase protection and many more things. "Tailored to meet the distinct needs of ultra high net worth clients, the Al Islami Infinite Credit Card is a lifestyle statement. (2009) It gives card members access to an international concierge service, available 24 hours a day, seven days a week, to fulfill any requirement," a company statement said. Card members can too have a look at the best tickets available for any high-profile sporting, any match that has been conducting in the country or any celebrity is performing live or cultural event at reasonable prices. Al Islami Infinite Credit Card holders have a wide range of other benefits, which thus includes full multi-trip travel insurance, back up at any place whether it is a road side or a shopping mall as well as it provides discount over a variety of products and services. The members also have access of the card over several international as well as the national airports which thus facilitate the customer in every possible way. Thus the bank has the overview of how to develop to facilitate the customers in different and attractive ways. While the company provides several facilities to the customers, it gives the customer the extended warranties to the cardholders on their purchases, and rather giving special purchase options too to the customer. Al Islami Infinite Credit Card also helps in providing many emergency services like the emergency medical coverage or the card replacement or card renovation within the warranty period, thus providing full facilities to the customers and meeting the needs and demands of the customer in every possible way. "The Al Islami Infinite Credit Card is the perfect complement to our recently launched Wajaha proposition, and offers our ultra high net worth clients access to an exclusive world of benefits," said Dr Adnan Chilwan, Chief of Retail and Business Banking."We have developed this card to cater to the unique lifestyle requirements of our exclusive customers, and are confident that it will be appreciated statement about the privileged few who will carry it," he added. The bank announces the launch of the credit cards in association with visa, an offer that can account for several advantages for the customer at every place and at any time The credit card members can thus have a revolving credit facility without facing any interest amount and rather they are just required to give only and only 10 per cent of the monthly usage besides the monthly subscription fee. What a fantastic facility is provided to the customers. Wasim Saifi, Executive Vice President, Head of Retail and Business Banking, Dubai Islamic Bank, said: âA¢”šA¬A…“Al Islami Credit Cards offer all the convenient advantages of today's credit cards, while remaining true to the value of Sharia and the principles of Riba-free Islamic banking that Dubai Islamic Bank proudly represents." "The new cards will create a difference to the value proposition that is currently available in the market will be convenient for a wide range of customers. The cards also seek to deliver the message that DIB is continually developing its products and services to suit the needs of its customers," he added. Speaking about the features of the card, he said: "The cards are available in a choice of Platinum, Gold Premium, in addition to Gold and Classic. Al Islami Credit Card has no joining fee. It is free from 'Riba' or interest, and free from the non-Islamic charges like late payment fees or over limit fees." "Card holders can benefit from cash withdrawals of up to 100 per cent of the card limit through any of the over one million ATMs and financial institutions worldwide. The card is also accepted at over 35 million outlets worldwide," he added. Thus taking an overview of the card we can thus say that the credit card is designed to meet out the needs of the customers and facilitate the customers in every possible way. It thus fulfill the financial needs of the customer with the modern convenience of being accepted the card at every place and provides a lot of other privileges too. The bank also assures that the card is free from any kind of interest and other interest charges or the fees. The other privileges that the bank provides are thus lined below- Easy to earn. Easy to spend. A loyal program for all the members of the credit card that the card provides you huge benefits and comfort. And thus profits you in every possible small way. You can earn WalaâA¢”šA¬A¢”žA¢a Dirhams that is some points on the card every time you spend with the card or share some of the money of the card. While you have gained some points on the card you can take surprise gifts from the bank and rather if you keep increasing the points on the card you can get big gift vouchers from the bank. The second profit thus includes the traveling profits. The bank just provides you different kinds of discounts on various items or things which include the tickets and thus the traveling advantage also includes free accessibility of the card over several airports. To keep the point cut short, we can thus say that we can book airline tickets from the card having a look over the discount also. The card also provides the road side assistance and always provides help at any place. With the card in your hand you can assist your card at any place in case of emergency and the card can thus be use for vehicle registration, driving license and thus many more profits can be gained from the card. The card also provides you discount at the shopping place and we can thus go to any shop when we have the card as we know that the card is with us and the card is accessible at any place over any time. Rather the benefit of the card is that you can keep protected the card from the theft for a period of 60 days from the date of purchase. The card also helps you in accidents and travel insurance, rather we can say that we do not have to worry now while traveling and can travel with complete peace of mind and get utmost benefit from the card in any case of emergency like lose of our things, flight delays, emergency medical cover, etc. the card too helps in making easy payments any provides you many different ways to repay, we can thus make a point that paying the bill from the card is just simple, easy and now the most convenient way. The bank provides the money transfer, account transfer, by cheque, the ATM or rather the phone or the internet whichever way you like to do. The card also provides the 24 hour electronic banking services that means that the transactions can be done anywhere, anytime and at any place through the electronic banking services which thus include the online banking, mobile banking and phone banking which is available every time that is 24 hours a day. The different features of the card thus include the point that pay minimum amount each month and have the accessibility over whole of the month. It also includes global acceptability of the card with the facility of 80% cash withdrawal limit from the ATM of the branches respectively. The bank too provides different types of cards to meet out the demands and needs of the customers. The cards are thus lined below- 1) Classic Al Islami Charge Card âA¢”šA¬" the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low intro rates, Annual Fee: 200 Dhs and the Airlines Card. 2) Classic Personal Credit Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features thus include Low Intro Rates, Annual Fee: AED 75 monthly fee and the Airlines Card. 3) Gold Al Islami Charge Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, Annual Fee: 300 Dhs and the Airlines Card. 4) Gold Personal Credit Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, Annual Fee: AED 150 monthly fee and the Airlines Card. 5) Gold Premium Personal Credit Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, Annual Fee: AED 300 monthly fee and the Airlines Card. 6) Platinum Al Islami Charge Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, Annual Fee: 1,000 Dhs, the Airlines Card and the Platinum Card 7) Platinum Personal Credit Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, Annual Fee: AED 500 monthly fee, Airlines Card and the Platinum Card 8) VIP Platinum Al Islami Charge Card - the card has been issued by the Dubai Islamic Bank. The card is the VISA. The features of the card thus include Low Intro Rates, No Annual Fee and the Airlines Card. (Dub101)

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