Maldives’ first Islamic bank opens for business

The first Islamic bank in the Maldives opened today, promising Shariah-compliant banking services. President Mohamed Nasheed attended the opening ceremony this morning.

In an interview with Haveeru, CEO of Maldives Islamic Bank (MIB) Harith Harun said the bank entered the market with capital of Rf150 million (US$12 million), and would operate current, savings and term deposit accounts structured so as to avoid the payment of interest.

Harun told Haveeru the bank would also provide credit facilities to businesses and individuals under Murabahah (sale), Ijarah (lease) or Musharakah (equity participation), as well as trade finance, remittance and ancillary services.

Minimum initial deposit for a savings account would be Rf1000 or US$100, Harun said, Rf2500 or US$250 for a current account, and Rf5000 or US$500 for companies.

Harun told Haveeru that there was a strong demand for Islamic banking services in the Maldives. However he said the bank also faced issues with laws preventing foreign ownership of land, and would be unable to provide home-financing until the law was rectified. A 15 percent tax on the transfer of properly was also “disadvantageous”, he told Haveeru.

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9 thoughts on “Maldives’ first Islamic bank opens for business”

  1. Islamic banking? Really?

    All banks, including the national one, has got savings accounts. And interests are accumulated.
    For loans, interests are charged.

    One guru told me that, so much as touching a laari on earnings by interest, is equal to copulating with ones mother. As per Islamic Shariah. And that is the lowest of the 71, punishable offences for even thinking of interest.

    So nationally, do we care about Islamic? No.

    Maldives do NOT want islamic here. We want commercial banks. Currently we are having problems handling those as well, due to lack of proper monitoring systems. As far are islamic idiots go, we dont have educated people enough to run/monitor any mechanisms. Unless you count Fareed, Sheikhs, Ali Rameez, who knows nothing of anything of value to a society.

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  2. All thank goes to Allah, this is our dream! we as muslims are waiting for this day, Maldives is a 100% muslim coutry, and we will some how make BML also free from interest!

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  3. Ismail..u better protest,demonstrate,whateva.About it...But I dont think u guys or may be gays have the guts to do that?? so better keep expressing yourselves in Social networking sites ,inernet , facebook..cox thats all you people so far have been doing..no guts to go out and say "hey..Shut THE f*** up!! we dont want islamic bank ..We dont want islamic idiots " so just "PRESS" it.. thank you..

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  4. I really welcome the Islamic Banking concept in the Maldives. Despite what Ismail says, alot of Maldivians (and not just the 'wahhabis') want an Islamic Banking system in the maldives.

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  5. It has come to a position where, it is 'fardu kifayah' for the Government of Maldives to set an Islamic bank in Maldives. The launching of Maldives Islamic Bank has facilitated the increasing need of corporate and individuals to obtain funding according to Shariah principles. Please note that, the prevailing conditions and affairs of the Ummah in Maldives and the need to remove them from the shackles of riba has begin. Congratulation to the Government of Maldives, Maldives Islamic Bank and people of Maldives.

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  6. Salaam
    Mr.Ismail! it seems that you dont know how the Islamic banking system works. It provides loans and saving account facilities but that does not mean it accumulates interest. You are right that even a single laari earned from interest is haraam. Islamic Banking have a unique structure designed to avoid interest. For example if you open a saving account in islamic bank they would use your money to trade and they would give you a part from the profit instead of interest on savings. So thats permitted. You better learn about Islamic banking.
    May almighty Allah guide you
    salaam

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