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Mudaraba Rates

Dated: October 2019

Mudaraba

Mudaraba Pool Anticipated Profit Rate

Account Type Anticipated Profit Rate
(AED)
Anticipated Profit Rate
(USD)
Anticipated Profit Rate
(EUR)
Anticipated Profit Rate
(GBP)
Savings Account 0.50% 0.50% 0.00% 0.00%
Dual Account   -   -
5,000 to 49,999 0.25% 0.25% - -
50,000 to 149,999 0.50% 0.50% - -
150,000 & above 0.70% 0.50% - -
Savings Plus Account 0.50% 0.50% - -
Deposit Slab in AED Anticipated Profit Rate p.a.
5,000 – 99,999 1.00%
100,000 – 499,999 1.25%
500,000- 999,999 1.50%
1,000,000 – 4,999,999 1.65%
5,000,000 – 9,999,999 1.65%
10 Mio+ 1.70%
Deposit Slab in USD Anticipated Profit Rate p.a.
1,500 -29,999 1.00%
30,000 – 149,999 1.05%
150,000- 274,999 1.15%
275,000 –1,499,999 1.40%
1,500,000 – 2,999,999 1.55%
3 Mio + 1.55%
Mudaraba

Mudaraba Investment Deposit

Tenors Declared Profit Rate
(AED)
Declared Profit Rate
(USD)
Declared Profit Rate
(EUR)
Declared Profit Rate
(GBP)
1 M 1.75% 1.60% 0.00% 0.00%
3 M 2.10% 1.95% 0.00% 0.00%
6 M 2.20% 2.05% 0.00% 0.00%
9 M 2.30% 2.15% 0.00% 0.00%
12 M 2.35% 2.20% 0.00% 0.00%
Profit Payout – Monthly
3 M 2.00% 1.85% 0.00% 0.00%
6 M 2.10% 1.95% 0.00% 0.00%
9 M 2.20% 2.05% 0.00% 0.00%
12 M 2.25% 2.10% 0.00% 0.00%
Profit Payout - Quarterly
6 M 2.15% 2.00% 0.00% 0.00%
9 M 2.25% 2.10% 0.00% 0.00%
12 M 2.30% 2.15% 0.00% 0.00%

Profit sharing ratio for Mudaraba products

Mudarib profit share: 90% | Rab-Al-Mal profit share: 10%

Investment weightings

Tenor based weighting averages for:

  • Mudaraba Deposits
  • Short term investment accounts

Weightings for shareholders fund will be 10%

Product Tenure AED USD GBP EUR Others
Savings Not applicable 15% 15% 15% 15% 15%
Dual Account Not applicable 15% 15% 15% 15% 15%
Savings plus Not applicable 15% 15% 15% 15% 15%
Mudaraba Deposits and short term investment accounts 1 month 15% 15% 15% 15% 15%
2 months 15% 15% 15% 15% 15%
3 months 20% 15% 15% 15% 15%
4 months 20% 15% 15% 15% 15%
5 months 20% 15% 15% 15% 15%
6 months 25% 15% 15% 15% 15%
9 months 25% 15% 15% 15% 15%
12 months 35% 15% 15% 15% 15%
2 years 50% 15% 15% 15% 15%
3 years 50% 15% 15% 15% 15%
Mudaraba

MUDARABA-BASED DEPOSIT – PROFIT CALCULATION

Profit to Rab-al-Mal(customer/depositor) = BWA x MGR x PSR x N/365

Where;

BWA: The weighted average of cumulative daily balance for the month.

BWA = Cumulative daily balance x applicable weightage

MGR: MGR: The annual gross rate of return for Mudaraba-based funds.

MGR = (Global pool gross profit x Mudaraba funds' proportion) / Mudaraba funds’ BWA x 365/N

PSR: The prevailing profit sharing ratio of Rab-al-Mal.

N: Number of days in the month (profit period).

Note:

  • Global pool gross profit = Global pool total applicable income - Attributable expenses & allowances
  • Mudaraba funds’ proportion = Mudaraba funds’ BWA / Global pool total funds x 100

Illustration:

Prevailing PSR Rab-al-Mal 10% : Mudarib 90%
Applicable weightage 100%
Date of balance opening 01/09/2018
Date of balance ending (month end) 30/09/2018
N 30 days
Cumulative daily balance for the month AED 10,000
BWA AED 10,000
MGR 5%
Profit to Rab-al-Mal = AED 10,000 x 5% x 10% x 30/365
= AED 4.11

(Numbers are for illustration purpose only)

Account balance requirements:

  • Minimum monthly average balance: AED 3000
  • Minimum balance to participate in Mudaraba Pool for profit: AED 5000
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