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What is Standard Chartered Saadiq?

Inspired by the Arabic word for ‘truthful’, Saadiq is our global Islamic banking network spanning across Asia, Africa, and the Middle East, combining deep Shariah expertise with strong business acumen.

Why bank with Standard Chartered Saadiq?

We put your beliefs and values first by offering Shariah compliant financial solutions with outstanding benefits, world-class customer service and relationship management.

Accounts & Deposits

Saadiq Current Account is based on the concept of ‘Qard’, giving you convenience for everyday banking.

  • Unlimited transactions.
  • Open account in major currencies (AED, USD, GBP & EUR).
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See a better future with a higher rate of saving.

  • Earn up to 0.60% p.a. profit rate*, calculated on your average monthly balance. Open an account with as little as AED 3,000.
  • Accepted all over the world. Enjoy 24/7 access to your funds for ATM withdrawals, online shopping or at merchant outlets. (Only available with AED account) *
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Saadiq Savings Account is based on the concept of ‘Mudaraba’, giving you attractive returns on your savings.

  • Accepted all over the world, enjoy 24/7 access to you funds for ATM withdrawals, online shopping or at merchant outlets. * Terms and conditions apply
  • The profits are calculated on the average monthly balance maintained in your account, which means the more you save, the higher profits you can earn.
Ae saadiq savings account x

With Saadiq Term Account, earn competitive returns which complements your beliefs.

  • Choose from a minimum tenure of 1 month to a maximum of 12 months.
  • Minimum deposit of AED 25,000 or equivalent in Foreign Currency.
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Islamic solutions that match your aspirations

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Use our interactive map display to find the nearest ATM or branch.

Islamic banking is a system of conducting banking activities in line with the principles of Shariah while avoiding all the prohibited activities such as Interest/Riba, Gharar* (uncertainty), dealing in prohibited businesses (e.g. alcohol, gambling), etc.

‘Interest free banking’ is one of the key principles of Islamic banking. It allows you to avoid interest-based transactions, but in addition, also avoid unethical and socially unacceptable practices prohibited under Shariah law, including: unfair trade practices, hoarding, speculation, etc.

Therefore, Islamic banking transactions are based on ‘tangible assets and real services’ as opposed to ‘conventional money lending’.

* Gharar: The uncertainty that is present in the basic elements of an agreement (i.e. wording of the agreement, subject matter, etc.)

The teachings of Islam are meant for both Muslims and non-Muslims. Universal values like honesty, justice, avoiding fraud, etc., form the basic principles of Islamic banking. Therefore, Islamic banking is for everyone irrespective of what religion they follow.

Shariah means a “Way” or “Path”. In Islam, Shariah means guidance and laws given by the Holy Quran and the Hadith/Sunnah of the Holy Prophet (Peace Be Upon Him). It also includes juristic interpretations of Islamic scholars. Islamic Shariah is derived from the following four sources:

1. The Holy Quran

2. The Sunnah of the Holy Prophet (Peace Be Upon Him)

3. Ijma’ (consensus of the Mujtahideen – ‘Independent Jurists’)

4. Qiyas (Analogy)

Riba” means excess, increase or addition. As per Hadith of the Holy Prophet (Peace Be Upon Him), “Every loan that derives a benefit (to the lender) is Riba”. Therefore, interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it has the same meaning as that of Riba.

This is not the case. Islamic banks accept deposits from customers on profit and loss sharing or on the basis of “Qard”. These funds are used in Shariah compliant modes of finance, trade or investment. The income generated by these Shariah compliant modes are then distributed among the depositors as profit.

CONVENTIONAL BANKING

  1. Money is a commodity as well as a medium of exchange. Therefore, it can be sold at a price higher than its face value and it can also be rented out.
  2. Profit is earned by charging interest on capital. ‘Time value’ is the basis for charging interest on money/capital.
  3. Interest is charged even in case the organisation suffers losses by using the bank’s funds. Therefore, it is not based on profit and loss sharing.
  4. While disbursing cash finance, running finance or working capital finance, no agreement for exchange of goods and services is made.
  5. Conventional banks use money as  a commodity which leads to inflation.

ISLAMIC BANKING

  1. Money is not a commodity. It is only used as a medium of exchange. Therefore, it cannot be sold at a price higher than its face value or rented out.
  2. Profit is earned through trade of goods or charging for providing services.
  3. Islamic banks may operate on the basis of profit and loss sharing. If the business has suffered losses, the bank will share these losses based on the mode of finance used (e.g. Mudarabah and Musharakah).
  4. The execution of agreements for the exchange of services is a must while disbursing funds under  Murabaha, Salam and Istisna contracts
  5. Islamic banking tends to create link with the real sectors of the economic system by using trade  related activities. Since money is linked with real assets, it contributes directly to economic development.

Mudarabah is an arrangement in which a person (called Rab-ul-Mal) participates with his money and another person (called Mudarib) participates with his efforts. The parties agree, at the beginning, on a profit sharing ratio between them.

Musharakah is a partnership contract. The profits are shared as per agreed ratios between partners and losses are borne in proportion to their respective capital contributions.

Diminishing Musharakah (DM) is a form of co-ownership in which two or more persons share the joint ownership of a tangible asset (e.g. house) in an agreed proportion. It is agreed that one of the co-owners will purchase, in periodic instalments, the share of the other co-owner until the ownership of that tangible asset is completely transferred to the purchasing co-owner. Furthermore, along with the purchase of share, the (purchasing) co-owner will also make periodic payments for the usage of other co-owner’s share in the asset.

Musawamah is the general sale of goods whereby the seller is not obliged to disclose to the buyer the cost of goods sold.

Salam is a sale transaction in which the seller agrees to supply specific goods to the buyer at a future date against an advance payment which is fully paid at spot. The basic purpose of Salam is to meet he needs of the small farmers for the production of agricultural products.

Istisna is a sale transaction where a commodity is transacted before it comes into existence. In Istisna, the buyer is given an order to manufacture a specific commodity. Following are necessary conditions for Istisna:

– Price is fixed with the consent of parties.

– The specification of the commodity to be manufactured must be agreed between parties.

Ijarah is a type of rental contract whereby the owner of an asset (e.g. house), transfers the right to use to another person for an agreed period and price.

Wakalah is an agency contract in which one person appoints another person as his agent to perform a certain task on his behalf on agreed terms and conditions, usually against a certain fee. A contract of Wakalah can take place only in respect of such acts which the principal is competent to perform himself, provided such act can be performed by the agent.

Kafalah is a contract in which a third party becomes surety i.e. provides guarantee for the payment of debt on behalf of the debtor. It is a pledge given by a third party to a creditor to the effect that if the debtor defaults in payment of the debt, it will be paid by said third party as Kafeel or guarantor.

Qard is a loan contract between two parties where borrower is required to repay only the sum borrowed. It is not allowed for lender to charge any compensation under a qard/loan contract.

Disclaimer

Investment Products:

The content of this webpage does not constitute an offer, recommendation or solicitation of an offer to enter into a transaction or adopt any hedging, trading or investment strategy. It has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person. You should seek advice from a licensed or an exempt financial adviser on the suitability of the product for you, taking into account these factors before making a commitment to purchase or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether this product is suitable for you. You are fully responsible for your investment decision, including whether the product or service described here is suitable for you. The investment products mentioned are not principal-protected and you may lose all or part of your original investment amount. SCB will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of the information in this website.

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