KARACHI - Meezan Bank entered into an agreement with Mashreq Bank PSC, UAE ,where  Meezan Bank will earn Shariah-compliant profit on its US dollar clearing account balance held with Mashreq Bank. The innovative arrangement utilises a Shariah-compliant principle of Wakala.

Aimed at facilitating the growing market of Islamic financial institutions, this innovative product was initially developed to cater to Meezan Bank’s requirement of earning Shariah-compliant profits on its US dollar clearing account.

This product was developed and launched by Mashreq Bank in a record time and was later commercialised and made available to clients globally across Mashreq’s network. The product is approved by the Shariah divisions of both Banks.

Speaking to the occasion, Ariful Islam, Chief Operating Officer of Meezan Bank, commented: “The US Dollar Islamic arrangement with Mashreq Bank will prove to be a significant positive development in our attempts to provide the best clearing arrangements to our clients worldwide while ensuring that our ultimate objective of Shariah-compliance is achieved at the same time.”

Faisal Lalani, Head of Financial Institutions Division at Mashreq Bank, said: ‘I sincerely thank Ariful Islam for enabling the development and finalisation of this product. Mashreq Bank has benefited greatly by incorporating this product into our list of product offerings, which we will now propose to our other clients as well”.

Mashreq Bank is one of UAE’s leading and highest performing banks in the region. The Bank operates with 12 overseas offices in nine countries, including Europe, US, Asia and Africa.