Post by : Badri Ariffin

Emirates Islamic has made a significant advancement by launching the UAE’s first Shariah-compliant Certificate of Deposit (CD) Programme, representing a pivotal moment for Islamic banking innovation within the nation.

Designed specifically for institutional investors, this groundbreaking Islamic CD Programme offers a unique opportunity to diversify within the Islamic money market, all while benefiting from competitive returns. With a total valuation of USD 2 billion, it provides investment options in various currencies and time periods, greatly enhancing flexibility for investors.

This initiative aligns with Emirates Islamic’s strategy to broaden its funding avenues and solidify its footprint in international financial landscapes. The bank articulated that this programme underscores its enduring dedication to crafting innovative Islamic financial solutions, further supporting the UAE's ambition to emerge as a global Islamic finance hub.

Farid AlMulla, the Chief Executive Officer of Emirates Islamic, stated that the establishment of the Certificate of Deposit Programme solidifies the bank’s role as a frontrunner in Islamic banking. He emphasized that this initiative resonates with the UAE’s ‘We the UAE 2031’ vision, showcasing the bank’s endeavor to deliver sophisticated Islamic financial options to international stakeholders.

Mohammad Kamran Wajid, Deputy Chief Executive Officer at Emirates Islamic, noted that this new programme will enhance liquidity management while offering tailored financial solutions to clients. He explained that the initiative aims to attract a broader base of international investors, reinforcing the bank's stature in Islamic liquidity management as part of the UAE Strategy for Islamic Finance and Halal Industry 2031.

According to Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, the programme is a milestone in Shariah-compliant liquidity management. He highlighted that this offering stands among the first hard currency Islamic CD programmes worldwide, demonstrating the bank’s commitment to addressing evolving market demands through innovative solutions.

Market statistics reveal that the global Certificate of Deposit sector is valued at approximately USD 729 billion, with predictions indicating it could reach nearly USD 1.2 trillion by 2033. Notably, about 46 percent of global CD issuances are in US dollars.

Given the rising demand for short-term investment instruments in global markets and throughout the GCC region, Emirates Islamic’s new Shariah-compliant CD Programme is poised to significantly enhance Islamic capital markets and elevate the UAE’s status as a hub for Islamic finance.

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