We have Shari’ah compliant solutions that cater for your every need. Islamic banking is available to anyone who wants to bank differently, not only for members of the Muslim community who wish to operate financially in line with Shari’ah Law
Shari’ah compliant accounts
Learn more about our Shari’ah-compliant products
Absa’s Islamic Banking is advised and guided by the independent Shari’ah Supervisory Board, a panel of experts in Shari’ah Law and its application in economics.
Here’s what you need to know
Islamic banking is open to all members of the public including non-Muslims.
Islamic banking is an alternative to conventional banking that is available to anyone who seeks a different approach to financial services, not only for members of the Muslim community who wish to operate financially in line with Shari’ah Law.
Profit is calculated on the average daily balance.
Capitalisation takes place on the 31 December of every year and the payment takes place on 25 January each year.
The money you deposit into your Islamic savings account and Islamic TargetSave account is then invested in Shari’ah compliant financing and investments. The profits generated from these investments are shared with you. We aim to ensure that our profit rates are market competitive.
More about Shari'ah Compliant Banking
- Conventional banks can sell Shari’ah-compliant products because Islamic law does not require that the seller of the product be Muslim or that its other services also be Islamic. It does require that the product or service be in compliance with Shari’ah guidelines.
- Absa Islamic banking has not only developed Shari’ah compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking independent Shari’ah Supervisory Board comprising of eminent scholars in the field of Islamic banking:
- Sheikh Tauha Karaan
- Mufti Ashraf Qureishi
- Dr Yunoos Osman
- Dr Aznan bin Hasan
Absa Islamic banking has not only developed Shari’ah-compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking Shari’ah Supervisory Board, comprising of eminent scholars in the field of Islamic banking. The scholars are not employees of Absa Islamic banking and are independent.
Simply, riba is also interest. “Any loan that derives benefit”. It could be understood by the following example: If person A lends person B R10 000 and requires B to pay him R11 000 after four months, the additional R1000 is interest and impermissible.
Note: Riba is a fundamental prohibition in terms of Islamic law.
Your Absa Islamic banking debit card can be used for transactions in SA and internationally wherever you see the Visa / Visa Electron or Maestro / MasterCard logos are displayed. The logo on your Debit Card will guide you on where your card may be used e.g. at retailers that accept MasterCard.
Islamic banking is relatively new in South Africa, but we have been making great efforts and have already received significant international recognition. We won the 2006 Shari’ah Deal of the Year for South Africa and the 2007 award for the best Islamic Offering from a Conventional Bank. Absa Islamic Banking has also achieved the award for the Best Islamic Bank in Africa for the year ending 2007 & 2008 and in 2009, 2010, 2011, 2012, 2013 and 2014 Islamic Banking won Best Islamic Bank in SA. Global Finance magazine analysts also awarded us the Best Islamic Bank in Africa and the Middle East (non GCC for 2009, 2010 and 2011).
Voted Best Islamic Window in 2015 at Banker Africa awards.
No overdraft facility is available.
Interest is not charged on the account. However administrative fees for items such as returned cheques will be charged.
Specialised banking solutions
Absa is dedicated to bringing you a product offering that is compliant with Shari’ah Law. You can now apply online for one of our Shari’ah compliant accounts.
Shari’ah-compliant foreign bank notes and cash passports
Absa’s a great travel companion! We make it simple to send money abroad and exchange foreign currency.
Here are some services you get
Shari’ah-compliant saving and investing
Every person would like to be financially independent and this aspiration is within reach if you follow basic principles and stick to your plans.
Once you have established your financial goals, you can select a suitable means of achieving them.
A Shari’ah-compliant Will
Islamic Law requires that the estate of a Muslim should be distributed according to the Islamic Law of Succession, the detail of which can be found in the Qur’aan in chapter four.
It is a religious obligation for all Muslims living in South Africa to have a Will that conforms to Islamic Law, as the estate of anyone passing away without a valid Will is handled according to the South African Intestate Succession Laws, which contradict Shari'ah.