Investment Account Essay

What is the meaning of Al-Awfar? Al-Awfar means â€Å"prosperous investment†. 3. What is the difference between Al-Awfar Savings Account and Investment Account-i and the normal Bank Islam Savings Account-i and General Investment Account-i (GIA)? Al-Awfar Savings and Investment Account-i is a rewarding account that offers a host of additional features, which include expected Mudharabah returns on savings and investments (if any). This is in addition to the opportunity to receive cash prizes from the bank through a quarterly prize draw. 4. Is Al-Awfar Saving and Investment Account-i a form of gambling? NO. Al-Awfar Savings and Investment Account-i is free from any elements of gambling. 5. Is Al-Awfar Savings and Investment Account-i Shariah-compliant? YES. The Shariah Supervisory Council of Bank Islam approved this product in its 102nd meeting dated 7th April 2008 (30 Rabiulawal 1429H). 6. Are prize draws allowed according to the Shariah Law? YES. Prize draws are permitted if there is no elements of riba (usury), gharar (uncertainty) and maysir (gambling). 7. What is the basis on the permissibility of draw in Islam? 1. Al-Quran, in Surah Ali ‘Imran verse 44 This is a part of the news of the Ghaib (unseen, i. e. the news of the past nations of which you have no knowledge) which We inspire you with (O Muhammad ). You were not with them, when they cast lots with their pens as to which of them should be charged with the care of Maryam (Mary); nor were you with them when they disputed. . Is the draw performed in a manner that is transparent to the public? YES. There is an external independent draw committee who will observe the draw process. 9. What is the difference between Al-Awfar Savings and Investment Account-I and other competitors’ product? Al-Awfar Saving and Investment Account-i is the first product of its kind introduced by an Islamic bank, which meets all Shariah requirements. 10. Where does Bank Islam invest the funds deposited by customers? Bank Islam invests the fund in Shariah-compliant investments pproved by the bank’s Shariah Supervisory Council. 11. Can the cash prizes received be used for Ibadah purposes, e. g. performing the Hajj and Umrah or given away as Zakat and Sadaqah? YES. The cash prizes come from a Halal source. Upon receiving the cash prize, the customer is free to use it for any purpose 12. Are the cash prizes taken from the profit earned through Al-Awfar Savings and Investment Account-i? NO. The cash prizes are provided by the Bank and are not specifically derived from profits of Al-Awfar Savin gs and Investment Account-i.