Meezan Bank, the first and largest Islamic Commercial Bank, has entered into an agreement with Mashreq Bank PSC, UAE, under which 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 commercialized and made available to clients globally across Mashreq’s network. The product is approved by the Shariah divisions of both Banks. Speaking at the occasion, Mr. 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.”
Mr. Faisal Lalani, Head of Financial Institutions Division at Mashreq Bank, said: ‘I sincerely thank Mr. Ariful Islam for enabling the development and finalization 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 has always been one of our valued correspondent banks and it gives us immense pleasure to be the first bank to sign up for this innovative product which is a one of a kind sweep arrangement”, said Abdullah Ahmed, SEVP & Group Head of Treasury & Financial Institutions at Meezan Bank. “We are thankful to Meezan Bank for having faith in us and giving us an opportunity to service them. Mashreq Bank is one of the most innovative and leading provider of Islamic Treasury and Capital Markets solutions to Islamic Institutions. We look forward to doing more for Islamic banks in Pakistan.” said Fawad Taufique, Director Islamic Treasury and Capital Markets Mashreq.