Abu Dhabi Islamic Bank and First Gulf Bank Research Paper

Abu Dhabi Islamic Bank and First Gulf Bank - Research Paper Example The banks in UAE generally belong to two types and they are national and foreign. In the present situation there are around 46 operating banks in UAE among which 21 national banks. The banks are listed either on the Abu Dhabi Securities market or that of Dubai Financial market. Another important feature is rapid spread of Islamic banking with a range of sharia compliant product introduced in the market. The Islamic finance deals like Ijara transactions are highly common in property purchasing deals. Investment is huge with attractions of potential investors (UAE banking sector Report, 2007, p.1). The paper will deal with five common products of two banks operating in UAE. One is the First Gulf Bank (FGB) which is a conventional bank with its branches in some Asian countries and Abu Dhabi Islamic Bank (ADIB) which centers on with the strict principles of Sharia law and operates nationally. Finally after discussion a comparative analysis will be made. Abu Dhabi Islamic Bank (ADIB) Abu Dhabi Islamic Bank (ADIB) set its journey on 20th May 1997 in the form of a Public Joint Stock Company following the Emri decree 9 of 1997. The commercial operations of the bank started on November 11,1988 with the formal inauguration by His Highness Sheikh Abdullah Bin Zayed Al Nahyan, on 18th April 1999.The banks holds a vision to be one of the top tier global Islamic financial services group (5% Cashback with ADIB Covered Cards this summer, 2012). ADIB in the year 2010 introduced a new brand identity as its symbol of new promise. The bank has executed extensive research in the identification of ways which would be suiting the personal needs of customers. The bank delivers unique solution guided by the timeless rule and principles of Sharia. The bank also resides on the principle of banking as it should be. The employees of the bank are working 24*7 in order to implement the rules but also the execution of the powerful promises and offerings which the bank provides. The financing process of the bank is simplified and equipped with the latest e-ADIB Internet Banking which is highly safer and convenient in its use. The bank caters a large number of financial products and also launched some new products and services which lead to the ultimate satisfaction of the clients. Now the focus will be on the products of the ADIB bank with their detailed information and their mechanism (Corporate Banking, 2012). Deposits One of the primary goals of the customers within a banking interaction is that of deposits as keeping cash aside for the future is highly essential in hedging the uncertainties of the future. The deposits option in the ADIB bank helps the customers in making their money work and channelize in the way they want. The 24 hours ATM network service also provides instant access to the funds of the customers (Business Banking, 2012). The corporate banking offers a huge range of Sharia compliant Islamic banking solutions includes a large range of Sharia complain t Banking solutions including Murabaha, Istisnaa, Ijara, Islamic covered drawings and other Shari’a compliant products. The corporate banking highly caters on the expansion as well as innovation of tailor made pure Islamic banking solutions to the clients. The Corporate Banking client profile is segmented into government and public sector entities, financial institutions and a diversified private sector base of Trading, Contracting, Real Estate, Energy, Transportation, Manufacturing and other industries within the bank’s target market. Specific screening criteria have been developed to ensure origination of risk in these segments is in accordance with