Corporate Account is a non-checking, non-profit-bearing account which allows clients to hold, receive, and remit funds. It is also the account through which funds to support financing, foreign exchange, and other products will be routed, and is intended to provide clients with a simple and flexible solution to their operating account needs.
Corporate Accounts will be opened only for duly onboarded clients of the Bank. All clients will follow the standard digital onboarding procedure and eligible clients will be presented the Corporate Account Terms & Conditions along with the other terms and conditions to be signed digitally to complete the onboarding process. Opening of the first corporate account is seamlessly integrated into the onboarding process and whether a client is offered the Corporate Account product is determined automatically by the system based on the jurisdiction in which the client entity is registered.
At launch, the Corporate Account will be offered in USD. Over time, however, support for other currencies other than AED will be added, to facilitate a broader range of trade and other financing, cash management, and foreign exchange transactions.
The Corporate Account is based on the Islamic principle of Qard Hassan (benevolent loan) where clients will be placing funds as a loan from the clients to the Bank. As it is a loan, the clients will not be entitled to receive any amount in excess of their deposited funds. Otherwise, it will be Riba (or interest) which is prohibited under Shari’ah principles.
The Bank will be entitled to deploy the funds placed in a Corporate Account in Shari’ah-compliant activities for the Bank’s own benefit but at the Bank’s own risk. The Bank will guarantee the funds in Corporate Accounts and shall return them on demand in full to the client irrespective of the results of the Bank’s financing or investment activities.
Download the necessary documents to learn more about Shari’ah-compliant terms.
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Qard can be defined as a contract through which a lender (in this case the client) transfers the ownership of a fungible wealth, such as money, to a borrower (in this case the Bank) on the condition that the latter should return the same either on demand or at a specified time. However, Qard Hassan is a loan that is provided without charging any interest (i.e., without any stipulated increase to the loan amount) or gaining any return/benefit from it (whether monetary or in kind).
Transfers are defined as the transfer of funds between accounts held in the bank, whether between accounts held by a client or from one client to another. Payments are defined as outbound and inbound payments sent and received via SWIFT.
The Transfers and Payments product is based on the Shari’ah contract of Ujrah (payment of service fee in exchange for services rendered). The bank will charge clients a fee for certain services that it performs on behalf of the client, which in this case is only outbound Payments, since Transfers and inbound Payments are free of charge.
Ujrah is a permissible amount of fee charged by a service provider to the client for services that it performs for the client. Such a fee may be imposed on the client provided that the services do not contravene Shari’ah principles.
Download the necessary documents to learn more about Shari’ah-compliance terms.
Al Khaleej Bank Limited is a Prudential Category 1 Islamic Financial Institution registered with Abu Dhabi Global Market (ADGM) and regulated by the Financial Services Regulatory Authority (FSRA) of ADGM. The Bank offers Shari’ah compliant regulated activities (but not managing Profit-Sharing Investment Account) and has regulatory permissions for Accepting Deposits, Advising on Investments or Credit and Providing Credit
