Islamic Banking

Islamic banking refers to a system of banking or banking activity that is consistent with the

principles of Islamic law (Sharia) and its practical application through the development of

Islamic economics. Sharia prohibits the payment of fees for the renting of money (Riba, usury)

for specific terms, as well as investing in businesses that provide goods or services considered

contrary to its principles (Haraam, forbidden). While these principles were used as the basis for a

flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic

banks were formed to apply these principles to private or semi-private commercial institutions

within the Muslim community.

History of Islamic banking Classical Islamic banking

During the Islamic Golden Age, early forms of proto-capitalism and free markets were

present in the Caliphate, where an early market economy and an early form of mercantilism were

developed between the 8th-12th centuries, which some refer to as "Islamic capitalism". A

vigorous monetary economy was created on the basis of the expanding levels of circulation of a

stable high-value currency (the dinar) and the integration of monetary areas that were previously

independent.

A number of innovative concepts and techniques were introduced in early Islamic banking,

including bills of exchange, the first forms of partnership (mufawada) such as limited

partnerships (mudaraba), and the earliest forms of capital (al-mal), capital accumulation (nama

al-mal), cheques, promissory notes, trusts (see Waqf), startup companies, transactional accounts,

loaning, ledgers and assignments Organizational enterprises similar to corporations independent

from the state also existed in the medieval Islamic world, while the agency institution was also

introduced. Many of these early capitalist concepts were adopted and further advanced in

medieval Europe from the 13th century onwards.

Riba

The definition of riba in classical Islamic jurisprudence was "surplus value without

counterpart." or "to ensure equivalency in real value" and that "numerical value was immaterial."

During this period, gold and silver currencies were the benchmark

metals that defined the value of all other materials being traded. Applying interest to the

benchmark itself (ex natura sua) made no logical sense as its value remained constant relative to

all other materials: these metals could be added to but not created (from nothing).Applying

interest was acceptable under some circumstances. Currencies that were based on guarantees by

a government to honor the stated value (i.e. fiat currency) or based on other materials such as

paper or base metals were allowed to have interest applied to them. When base metal currencies

were first introduced in the Islamic world, no jurist ever thought that "paying a debt in a higher

number of units of this fiat money was riba" as they were concerned with the real value of

money (determined by weight only) rather than the numerical value. For example, it was

acceptable for a loan of 1000 gold dinars to be paid back as 1050 dinars of equal aggregate

weight (i.e., the value in terms of weight had to be same because all makes of coins did not carry

exactly similar weight).

Al Baraka

About us

With a vision for unrivaled services, dedication to Islamic principles of banking, increasing

network points, and innovative product line, Al Baraka Bank (Pakistan) Limited is committed to

the Banking Industry in Pakistan.

Al Baraka Bank (Pakistan) Limited (ABPL) is the result of a merger between Al Baraka Islamic

Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain and

Emirates Global Islamic Bank (Pakistan). The merged entity commenced operations on

November 1st 2010.

The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an

important role in further growing an industry which has witnessed tremendous growth over the

last 12 years.

With assets in excess of Rs. 85 billion; a workforce of 1400 professionals and a network of 110

branches in 58 cities and towns across Pakistan, Al Baraka Bank (Pakistan) Limited is devoted in

providing customers with a range of Shariah compliant products to suit their banking needs.

Faced with growing challenges in this rapidly developing market, ABPL strongly relies on its

ability to be an effective and efficient market player through renewed focus on superior customer

service, development of Islamic alternatives to conventional financing facilities, and strict

adherence to Shariah rulings and principles.

Al Baraka Bank (Pakistan) Limited, offers a wide array of Islamic financing products such as

Murabaha, Ijarah, Musharakah and Islamic Export Refinance etc., catering to a diverse cross-

section of the economy including the Corporate, SME and Consumer sectors.

Moreover, various Shariah compliant deposit schemes are also available for customers to invest

their funds in, along with a variety of other ancillary services such as online branch banking, Al

Baraka Union Pay Debit Card, SMS banking, InterBank Funds Transfer, E-Statements,

electronic statement of accounts, safe deposit lockers and utility bill payments.

United Bank Limited

About us

United Bank Limited was incorporated in Pakistan with the registered office in Karachi, and the

principal office situated in Islamabad.

UBL has assets of over Rs.1 trillion and a solid track record of over fifty years - in addition, the

bank operates 1281 branches all over Pakistan including 22 Islamic banking branches, and 1

branch in Karachi export processing zone and 18 branches outside Pakistan.

The banks ordinary shares are listed on all three stock exchanges in Pakistan and its global

Depositary Receipts (GDRs) are on the list of the UK Listing Authority and the London Stock

Exchange Professional Securities Market. These GDRs are also eligible for trading on the

international Order Book System of the London Stock Exchange.

Join us in a world class journey and let us serve you better, because at UBL You come first

Basic Banking Account

Basic Banking Account will be a current account. It’s a current account or no profit and

no loss account

Non Islamic Element

The interest factors are a non-Islamic in this account. These account money are used is

interest base business

Convert In To Islamic Account

This account convert in to Islamic if Funds received are on the basis of Qardh and are

used only in Shariah compliant business. 

Saving Account

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

This account convert in to Islamic if Funds are received on the basis of Mudaraba and are 

used only in Shariah compliant business.

UBL UniZar Foreign Currency Savings Account

UBL UniZar Foreign Currency Savings Account is ideal for those customers and

individuals who wish to maintain a secure foreign currency transactional account which also

provides a return. It is available in 5 leading currencies: US Dollar, British Pound, Euro, Saudi

Riyal and UAE Dirham.

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

This account convert in to Islamic if Funds are received on the basis of Mudaraba and

are used only in Shariah compliant business.

UBL UniZar Foreign Currency Current Account

UBL UniZar Foreign Currency Current Account is ideal for those customers and

individuals who wish to maintain a secure foreign currency transactional account. It is available

in 5 leading currencies: US Dollar, British Pound, Euro, Saudi Riyal and UAE Dirham.

Non Islamic Element

That currency involved in interest base business

Convert In To Islamic Account

This account convert in to Islamic if Funds are received on the basis of Qardh and are

used only in Shariah compliant business.

Business Account

To us reliability means unmatched accessibility, convenience and freedom.Access your

account from over 1300 online branches in over more than 400 cities all across Pakistan for

unlimited online transactions. With UBL Business Partner, your account moves with you.

Wherever you go, we will follow. Enjoy total convenience at any online branc

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

If Business Account base on a Mudarabah based and Investment Account providing the

necessary tools to individuals and corporate customers to transact their entire business activities.

Then that account is convert in Islamic way

UBL Profit certificate of deposit COD

Now you can earn a higher income on your surplus cash by investing it in Certificate of

Deposit which helps you earn extra income with your hard earned money, while providing

absolute trust and security.

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

If Profit certificate of deposit COD base on a Mudarabah and are used only in Shariah

compliant business based then it’s convert in to Islamic way

UBL First is a savings account

UBL First is a savings account opened on behalf of a child in the name of the father or

mother or a court-appointed guardian and the minor.

UBL First is designed especially for children and aims at becoming every child's first bank

account, helping inculcate a savings habit. It is tailored to meet a child's future financial needs in

a planned and convenient manner.

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

Minor Saving Account is designed specifically for junior/children under the age of 18

years if accordance the rules of Mudarabah and  Funds are received on the basis of Mudarabah

and are used only in Shariah compliant business. then it’s convert in to Islamic way

UBL Address Home Loan Facility

With a maximum financing limit of 70% you can easily buy a house or apartment that

best fits your requirements. So go ahead and start the search for your dream home because with

easy and affordable installments you need not think of renting a house when you've got UBL

Address.

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

If UBL Address Home Loan Facility base on a Shirkat-ul-Milk (Musharaka) Agreement

and it’s signed between you customer and the Bank., then Bank and customer will become

joint owners (partners) in the Musharakah property. When customer

have purchased all units of Bank, customer become the sole owner with a free and clear title to

your home.

UBL Drive

UBL Drive is a unique auto financing product which offers you features, options and

flexibility unmatched by any other bank, because at UBL, you come first. Both fixed and floating

rates are offered to our customers.

Non Islamic Element

The interest factors are a non-Islamic in this account

Convert In To Islamic Account

If UBL Drive Loan Facility base on a Ijarah Agreement and it’s signed between you

customer and the Bank. Ijarah means 'to give something on rent’. It is a Shariah compliant

alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The

Lessor (Bank) allows the Lessee (You) to use the vehicle owned by the Lessor in return for a

monthly rent.

Comparison of Product

Al Baraka product comperes with UBL Bank

UBL Bank Al Baraka Bank

Basic Banking Account

Funds received are on the basis of Qardh and

are used only in Shariah compliant business.

Al Baraka Basic Banking Account

The ABPL Basic Banking Account is based on

the Islamic principle of Qarz, whereby the

customer is the lender and the bank is the

borrower. Customer funds are invested with

utmost care in halal business ventures only,

and are payable, on demand, with neither any

addition and/or penalty. BankIslami's Islami

foreign currency account is based on the

Islamic principle of Qarz (loan) whereby you

are the lender and the Bank is the borrower.

These funds are invested in halal business

Savings Account

Funds are received on the basis of Mudaraba

and are used only in Shariah compliant

business.

With a minimum of only PKR 100000 the

rupee saving account can be opened under

musharakah agreement. The profit earned is

calculated every month. And if the client

maintains a monthly balance of PKR 10000 the

client is eligible for the profits the will be

disbursed every month

Business Account

If Business Account base on a Mudarabah

based and Investment Account providing the

necessary tools to individuals and corporate

customers to transact their entire business

activities. Then that account is convert in

Islamic way

ventures only so that you are 100% sure that

your funds are managed in a Shariah compliant

manner. The funds are payable to you on

demand as and when required with neither any

addition nor penalty.

Al Baraka Savings Account

Al Baraka saving account is based on the

Islamic concept of Mudarabah. Under this

arrangement the customer is Rab-ul-Maal

(Investor) and the bank is Mudarib (Fund

Manager). Customer deposit is invested in

profitable business ventures which are legal

and Shariah compliant. The profit/loss is

shared on a pre determined ratios. As Fund

Manager, the bank is entitled to a part of the

profit, whereas profit distribution amongst the

depositors and shareholders is made according

to the weightages assigned to their investment

at the beginning of each month.

Al Baraka Business Plus

Al Baraka Business Plus is based on the

Islamic concept of Mudarabah. Under this

arrangement the customer is Rab-ul-Maal

(Investor) and the bank is Mudarib (Fund

Manager). Customer deposit is invested in

profitable business ventures which are legal

and Shariah compliant. The profit/loss is

shared on a pre determined ratios. As Fund

Manager, the bank is entitled to a part of the

UBL First Is A Savings Account

Minor Saving Account is designed specifically

for junior/children under the age of 18 years if

accordance the rules of Mudarabah and  Funds

are received on the basis of Mudarabah and are

used only in Shariah compliant business. then

it’s convert in to Islamic way

UBL Address Home Loan Facility

If UBL Address Home Loan Facility base on a

Shirkat-ul-Milk (Musharaka) Agreement and

it’s signed between you customer and the

Bank., then Bank and customer will become

joint owners (partners) in the Musharakah

property. When customer have purchased all

units of Bank, customer become the sole owner

with a free and clear title to your home.

UBL Drive

If UBL Drive Loan Facility base on a

Ijarah Agreement and it’s signed between you

customer and the Bank. Ijarah means 'to give

profit, whereas profit distribution amongst the

depositors and shareholders is made according

to the weightages assigned to their investment

at the beginning of each month

Tifl-Young Savers Account

Al Baraka Tifl- Young Savers Account is

offered on the basis of Mudarabah principles of

Islamic Banking. Mudarabah is a special kind

of partnership where one partner gives money

to another for investing in Shariah compliant

avenues. The investment comes from the first

partner who is called Rabb-ul-mal (Customer),

while the management and work is an

exclusive responsibility of the other, who is

called Mudarib (Bank).

ABPL Auto Ijarah

Al Baraka Islamic Auto Finance is one of the

most distinctive Shariah compliant products

offered by Al Baraka Bank (Pakistan) Limited

something on rent’. It is a Shariah compliant

alternative to Conventional leasing where Bank

acts as a Lessor and you act as a Lessee. The

Lessor (Bank) allows the Lessee (You) to use

the vehicle owned by the Lessor in return for a

monthly rent.