The objectives of the distribution of wealth in Islam
If we consider the injunctions of the Holy Quran, it would appear that the system for the distribution of wealth laid down by Islam envisages three objects: a) The establishment of a practicable system of economy: The first object of the distribution of wealth is that it would be the means of establishing in the world a system of economy which is natural and practicable, and which, without using any compulsion or force, allows every individual to function in a normal way according to his ability, his aptitude, his own choice and liking, so that his activities may be more fruitful, healthy and useful. And this cannot be secured without a healthy relationship between the employer and the employee, and without the proper utilization of the natural force of supply and demand. That is why Islam does admit these factors. A comprehensive indication of this principle is to be found in the following verse: The condition of "proper utilization" has been assumed because it is possible to make an improper use of forces, and it has been the case under Capitalism. Islam has struck at the very root of such an improper use and has thus eradicated the unbridled exploitation of private property. ''We have distributed their livelihood among them in worldly life, and have raised some above others in the matter of social degrees, so that some of them may utilize the services of others in their work." (43:32) b) Enabling every one to get what is rightfully due to him: The second object of the Islamic system of the distribution of wealth is to enable everyone to get what is rightfully his. But, in Islam, the concept and criteria of this right is somewhat different from what it is in other systems of economy. Under materialistic economic systems, there is only one way of acquiring the right to ''wealth'', and that is a direct participation in the process of production. In other words, only those factors that have taken a direct part in producing wealth are supposed to be entitled to a share in "wealth", and no one else. On the contrary, the basic principle of Islam in this respect is that "wealth" is, in principle the property, of Allah Himself and He alone can lay down the rules as to how it is to be used. So according to the Islamic point of view, not only those who have directly participated in the production of wealth but those to whom Allah has made it obligatory upon others to help, are the legitimate sharers in wealth. Hence, the poor, the helpless, the needy, the paupers and the destitutes - they too have a right to wealth. For Allah has made it obligatory on all those producers of wealth among whom wealth is in the first place distributed that they should pass on to them some part of their wealth. And the Holy Quran makes it quite explicit that in doing so they would not be obliging the poor and the needy in any way, but only discharging their obligation, for the poor and the needy are entitled to a share in wealth as a matter of right. Says the Holy Quran:
"In their wealth there is a known right for those who ask for it and those who have need for it.” (70:24-25) In certain verses, this right has been defined as the right of Allah. For example: “And pay what is rightfully due to Him on the day of harvesting." (6:142) The word "right" in these two verses makes it clear that participation in the process of production is not the only source of the right to ''wealth'', and that the needy and the poor have as good a right to "wealth" as its primary owners. Thus Islam proposes to distribute wealth in such a manner that all those who have taken a part in production should receive the reward for their contribution to the production of wealth, and then all those too should receive their share that Allah has given a right to "wealth". c) Eradicating the concentration of wealth: The third object of the distribution of wealth, which Islam considers to be very important, is that wealth, instead of becoming concentrated in a few hands, should be allowed to circulate in the society as widely as possible, so that the distinction between the rich and the poor should be narrowed down as far as is natural and practicable. The attitude of Islam in this respect is that it has not permitted any individual or group to have a monopoly over the primary sources of wealth, but has given every member of the society an equal right to derive benefit from them. Mines, forests, un-owned barren lands, hunting and fishing, wild grass, rivers, seas, spoils of war etc., all these are primary sources of wealth. With respect to them, every individual is entitled to make use of them according to his abilities and his labor without anyone being allowed to have any kind of monopoly over them. "So that this wealth should not become confined only to the rich amongst you”. (59:7) Beyond this, wherever human intervention is needed for the production of wealth and a man produces some kind of wealth by deploying his resources and labor, Islam gives due consideration to the resources and labor thus deployed, and recognizes man's right of property in the wealth produced. Every one shall get his share according to the labor and resources invested by him. Says the Holy Quran: “We have distributed their livelihood among them in worldly life, and have raised some above others in the matter of social degrees, so that some of them may utilize the services of others in their work". (43:32) But, in spite of this difference among social degrees or ranks certain injunctions have been laid down in order to keep this distinction within such limits as are
necessary for the establishment of a practicable system of economy, so that wealth should not become concentrated in a few hands. Of these three objects of the distribution of wealth, the first distinguishes Islamic economy from Socialism, the third from Capitalism, and the second from both at the same time.
History of Islamic Banking
"Seek the other world by means of what Allah has bestowed upon you" (28:77) The Holy Quran "We must work our destiny in our own way and present to the works an economic system based on true Islamic concept of equality of manhood and social justice"Quaid's concept of Islamic Banking [Opening Ceremony of The State Bank of Pakistan on July 1, 1948] "Establish Islamic banking as banking of choice to facilitate implementation of an equitable economic system, providing a strong foundation for establishing a fari and just society for mankind"Vision, Meezan Bank Limited 1947 The inception of Pakistan as the first Islamic Republic created in the name of Islam. 1980 CII presents report on the elimination of Interest genuinely considered to be the first major comprehensive work in the world undertaken on Islamic banking and finance. 1985 Commercial banks transformed their nomenclature stating all Rupee Saving Accounts as interest-free. However, foreign currency deposits in Pakistan and foreign loans continued as before. 1991 Procedure adopted by banks in 1985 was declared un-Islamic by the Federal Shariat Court (FSC). The Government and some banks/DFIs made appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan.
1997 Al-Meezan Investment Bank is established with a mandate to pursue Islamic Banking. Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. 1999 The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appeals and directs all laws on interest banking to cease. The government sets up a high level commission, task forces and committees to institute and promote Islamic banking on parallel basis with conventional system. 2001 The Shariah Supervisory Board is established at Al-Meezan Investment Bank led by Justice (Retd.) Muhammad Taqi Usmani as chairman. State Bank of Pakistan sets criteria for establishment of Islamic commercial banks in private sector and subsidiaries and stand-alone branches by existing commercial banks to conduct Islamic banking in the country. 2002 Meezan Bank acquires the Pakistan operations of Societe Generale and concurrently Al Meezan Investment Bank converts itself into a full fledged Islamic commercial bank. The first Islamic banking license is issued to the Bank and it is renamed Meezan Bank. President General Pervez Musharraf inaugurates the new Islamic Commercial Bank at a formal ceremony in Karachi. 2003 Meezan Bank establishes itself as the pioneer of Islamic Banking in Pakistan and quickly establishes branches in all major cities of the country. A wide range of products are developed and launched consolidating the Bank’s position as the premier Islamic Bank of the country Al Meezan Investment Management Limited (AMIM), the asset management arm of Meezan Bank, introduces Meezan Islamic Fund (MIF), the country’s first open-end Islamic Mutual Fund. 2004 The State Bank establishes a dedicated Islamic Banking Department (IBD) by merging the Islamic Economics Division of the Research Department with the Islamic Banking Division of the Banking Policy Department. A Shariah Board has been appointed to regulate and approve guidelines for the emerging Islamic Banking industry. The Government of Pakistan awards the mandate for debut of international Sukuk (Bond) offering for USD 500 million. The offering is a success and establishes a benchmark for Pakistan. Meezan Bank acts as the Shariah Structuring Advisor for this historic transaction. 2005 Meezan Bank becomes the first customer of Islamic Insurance (Takaful) by signing the first Memorandum of Understanding MoU with Pak-Kuwait Takaful
Meezan Bank is clearly positioned as the leading Islamic Bank in the country. 2007 Meezan Bank opens up its 100th branch.Company Limited (PKTCL).1 billion in December 2008 compared to Rs. A world renowned Shariah Supervisory Board and a highly qualified and experienced in house Shariah Advisor are fundamental aspects of the Bank's core USP.Meezan continues its leadership position in the industry by more than doubling it branch network to a total of 62 branches in 21 cities. 2006 A number of new dedicated Islamic Banks. 2008 With 166 Branches (including 35 sub-branches) in 40 cities across Pakistan. The members of the Board are:
Justice (Retd. 271. 185 billion in December 2008 compared to Rs. The foundations of a strong Shariah underpinning at Meezan Bank were laid from the beginning. Abdul Sattar Abu Ghuddah
. Total assetsof Islamic banking reached Rs. 137. becomes the first Islamic bank to introduce 8 am to 8 pm banking at selected branches in Karachi.6 billion in December 2007. serving on the boards of many Islamic banks operating in different countries. clearly establishing itself as the largest Islamic Bank of the country. Market share in the overall banking increased to five per cent at end December 2008 compared with four per cent at end December 2007. commence operations in Pakistan.
Shariah Supervisory Board
The letter and spirit of Islamic Banking rest upon absolute adherence to the Shariah.The financing and investment portfolio of local Islamic banks reached Rs. namely Emirates Global Islamic Bank and Dawood Islamic Bank. The signing of this MoU has ushered Pakistan into a new era of Islamic Insurance (Takaful).) Muhammad Taqi Usmani (Chairman) Dr.2 billion in December 2007. Two new dedicated Islamic Banks start operations in Pakistan. The primary role of this board is to maintain and further strengthen this commitment and to ensure strict Shariah compliance in all the Bank's operations. Work starts on the construction of Meezan Bank’s new Head Office building. The members of the Shariah Supervisory Board of Meezan Bank are Internationally-renowned scholars. namely Bank Islami and Dubai Islamic Bank. 205. Meezan Bank.
Justice (Retd. Board. Justice (Retd. Bahrain Member Board. which is one of the biggest events in Islamic Finance Industry. Jeddah. (an organ of IDB). Born in Pakistan.) Muhammad Taqi Usmani (Chairman)
Justice (Retd. Ishaq Dr. Muhammad Imran Ashraf Usmani (Advisor)
Justice (Retd. His Highness Sheikh Mohammad Bin Rashid Al Maktoum (Dubai Crown Prince and UAE Minister of Defense) presented a special award to Justice (Retd. Bahrain Monetary Agency. Prior to these. Saudi Arabia Vice President. Council AAOIFI.• •
Sheikh Essam M. New York. Karachi) as well as an active contributor of articles in leading Pakistani newspapers. First Islamic Investment Bank. USA Chairman. He is also the Editor of the magazine Albalagh (a weekly publication of Jamia Darul Uloom. he completed the Takhassus course. Jeddah. In March 2004. UK Member. Supreme Court of Pakistan from 1982 to 2002. Sri Lanka Chairman.
Other positions currently held:
• • • • • • • • • • • • • Permanent Member International Islamic Fiqh Academy.) Muhammad Taqi Usmani is a renowned figure in the field of Shariah. Dublin. teaching various subjects on Islam for 39 years.) Muhammad Taqi Usmani graduated from Punjab University. Board. Darul Uloom Karachi. Saudi Arabia Member. particularly in Islamic Finance. Board Islamic House of Britain plc. Bahrain Chairman. Pakistan Chairman. Pakistan. Islamic Fiqh Academy of Rabita-al-Alam-e-Islami. Saudi Arabia
. Board. Islamic Corporation for Development of the Private Sector.) Muhammad Taqi Usmani in recognition of his lifetime service and achievement in Islamic Finance at the occasion of International Islamic Finance Forum. Dubai. Center for Islamic Economics Pakistan Chairman. UAE Chairman. Makkah. Pakistan. Pakistan in 1970 and also holds an LLB from Karachi University. He currently holds advisory positions in a number of financial institutions practicing Islamic Banking and Finance. Board Abu Dhabi Islamic Bank. Bahrain Member and Former Chairman. He has served as a Judge in the Shariat Appellate Bench. Amana Investments Limited. European Council of Fatwa and Research. which is the specialization course of Islamic Fiqh and Fatwa (Islamic Jurisprudence) from Jamia Darul Uloom Karachi.) Muhammad Taqi Usmani has vast experience in Islamic Shariah. Ireland Chairman. Board Dow Jones Islamic Market Index.
Karachi. Abdul Sattar teaches Fiqh. Currently he is involved in conducting training sessions for Meezan
. He has also completed the specialization course in Islamic Jurisprudence from Jamia Darul Uloom. Bahrain Discover Islam. Aqeeda and Tafseer courses in Bahrain. Montreal. Bahrain Member Supervisory Board. in Islamic Finance and is a graduated as a scholar from Jamia Darul Uloom. He holds position of Director in a number of Business and Educational institutions. Bahrain Zawaya Property Development. of Saudi Arabia. Dow Jones Islamic Market Indexes. First Islamic Investment Bank. Canada. USA
Dr. Bahrain Middle East Traders. Saudi American Bank. Kuwait. Muhammad Imran Ashraf Usmani (Advisor)
Dr. Bahrain. Chairman. Ishaq graduated in Political Science from McGill University. Dr. USA Member Board. Saudi Arabia
Sheikh Essam M. UBS. Bahrain
Dr. Islamic studies and Arabic in Riyadh and has done a valuable task of research and compiling information for the Fiqh-Encyclopedia in the Ministry of ‘Awqaf’ and Islamic Affairs. Switzerland Member Board Guidance Financial Group. Bahrain Muslim Educational Society. Bahrain Bahrain Development Bank. He holds a PhD in Islamic Law from Al Azhar University Cairo. Currently he is teaching Fiqh. Board Islamic Financial Services Board. which include:
• • • • • • • • Al Baraka Islamic Bank. Pakistan. He has been a member of the ‘Fatwa’ Board in the same Ministry from 1982 to 1990. Department of Financial Instruments at Al-Baraka Investment Co. Bahrain Al Iman Islamic School. D. Board International Islamic Rating Agency
Member Board. Pakistan. Abdul Sattar Abu Ghuddah
Dr. Egypt. USA Member Board. Ishaq
Born in Bahrain Sheikh Essam M.
Other positions currently held:
• • • • Member Board. Phil and Ph. He holds the position of Advisor at Discover Islam. Karachi. Guidance Financial Group. Abdul Sattar Abu Ghuddah is the Advisor and Director.• • •
Chairman. He is an active member of Islamic FiqhAcademy and the Accounting & Auditing Standards Board of Islamic Financial Institutions. Muhammad Imran Ashraf Usmani is a M.
Other positions currently held:
• • • • • • • • • • • • Member. Future Growth Fund. Kingdom of Bahrain) Naser Abdul Mohsen Al-Marri (Vice Chairman) Irfan Siddiqui (President & Chief Executive Officer) Ariful Islam (Chief Operating Officer) Rana Ahmed Humayun Mohammed Azzaroog Rajab Ahmed Abdul Rahim Mohamed Nawal Ahmed Jassar Dakheel Al-Jassar
• • • • • • • •
. Guidance Financial Group. Switzerland Advisor and Board Secretary. HFS Project and Mutawassita classes. USA Advisor. Sheikh Ebrahim Bin Khalifa Al-Khalifa (Chairman) (Minister of Housing. South Africa Advisor/ Member of Supervisory Board ABN AMRO Bank (Global) Advisor/ Member of Supervisory Board Japan Bank of International Corp (Global) Member of Supervisory Board AIG Insurance Company (Global) Member of Supervisory Board Pak Kuwait Takaful Company Ltd. Credit Suisse Bank. Dr. Executive Director (Administrator). Karachi. Lloyds TSB Bank. Usmani has also authored various books on Islamic and especially his book Meezan Bank's Guide to Islamic banking has been the guiding light in the area of Islamic Banking. E. HSBC Amanah (Global) Member. Board. DCD Financial Group. UK Member of Advisory / Member of Supervisory Board. Board. Pakistan. Supervisory Board. Jamia Darul Uloom Karachi
Board of Directors
The Board of Directors of Meezan Bank are:
H. State Bank of Pakistan Member. Ministry of Housing. UK Member of Board.Bank's staff in the area of Islamic finance and has been teaching several subjects of Islamic Fiqhsince 1998 at Jamia Darul-Uloom.
This single unifying factor unleashes the tremendous power of a dedicated and motivated team committed to fulfilling the Vision and Mission of this Bank.
.The Meezan Team
Meezan Bank is managed by a team of professional bankers committed to the cause of Islamic Banking. The business segments of the Bank are:
• • • • • •
Corporate and Investment Banking Commercial and SME Consumer Finance Treasury & Financial Institutions Asset Management (managed through a subsidiary Al Meezan Investment Management Limited. namely South Region .) Retail Banking is organized in three Regions across Pakistan. Central Region and North Region.
.17 100 %
Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system. in million 2.32 15.242 %
Share Holders Noor Financial Investment Company.926
9. Jeddah Others Paid up Capital
459 747 4.) Limited
Pakistan Kuwait Investment Company (Pvt. Kuwait Rs.00
Islamic Development Bank. providing a strong foundation for establishing a fair and just society for mankind.
respect for individual enterprise and performance.
Our Service Mission
To develop a committed service culture which ensures the consistent delivery of our products and services within the highest quality service parameters. This is a milestone that is not only the success story of Meezan Bank but also the continuing success story of Islamic Banking in Pakistan. As the first and largest dedicated Islamic Bank in Pakistan. while optimizing the stakeholders value through an organizational culture based on learning. One of the key objectives of the Bank is to have its footprint strategically placed throughout the country enabling the public to avail the benefits of Shariah Compliant Banking in their neighborhood. Meezan Bank has established 166 branches in 40 cities across Pakistan.Our Mission To be a premier Islamic bank. offering a one-stop shop for innovative value added products and services to our customers within the bounds of Shariah. With this extensive network.
Meezan's Branch Network
Alhamdolillah. All branches provide real time online banking facilities to customers. promoting Islamic values and ensuring recognition and a quality banking experience to our customers.
. fairness. our existing and potential customers are now closer than ever in attaining Islamic Banking at their doorstep. Meezan Bank team continues to build on its Vision of establishing "Islamic Banking the Banking of First Choice".
The cities in which the Bank presently operates are as follows:
Southern Region Hub (Lasbela) Hyderabad Karachi Nawabshah Quetta Sakrand Sukkur Tando Adam Tando-Allah-Yar Central Region Bahawalpur Daska Dera Ghazi Khan Faisalabad Gojra Gujranwala Jhang Kasur Lahore Mandi Bahauddin Mian Channu Multan Okara Rahim Yar Khan Sadiqabad Sahiwal Sargodha Sheikhupura Sialkot Northern Region Abbottabad Dera Ismail Khan Gujar Khan Haripur Islamabad Kohat Mansehra Mardan Muzaffarabad Peshawar Rawalpindi Swat
.The Bank is currently segmented into three Regions of Pakistan.
a flexible Rupee based account that is ideal for individuals and businesses looking for Shariah compliant banking and professionalism both under one roof.• Rupee Current Account
Meezan Bank is pleased to offer Riba-Free Current Account. Key features of the Riba -Free Current Account
• • • • • • • • •
Free Online Banking services at all Meezan Bank branches nationwide Instant access to funds at any online branch No restriction on withdrawals or number of transactions Bank balance certificates & duplicate statements of account Stop Payment & Hold Mail instructions 24/7 Card your ATM & Debit Card in one 24/7 Call Center with complete Tele-banking services Personal financial consultancy services Specialized 8 to 8 Banking at selected branches
• Rupee Saving Account
. the Meezan Bank Current Account is an innovative value added account which provides customers both ease of utility and unmatched service quality. Bundled with 24/7 and special banking services. The Meezan Bank Current Account. is a comprehensive Halal method of acquiring a secure and easily maintainable Riba Free bank account.
10. priority banking and more. 2009 Average Monthly Balance (PKR) On Average Monthly Balance . Free Online Banking services at all Meezan Bank branches nationwide No restriction on withdrawals or number of transactions Bank balance certificates & duplicate statements of account Stop Payment & Hold Mail instructions
Profit Rates are applicable for profit calculation on average monthly balance between the period February 01. 2009 to February 28. no restrictions on transactions.A unique bank account that offers the opportunity to earn Halal profits. we offer the following additional conveniences:
• • • • •
Instant access to funds at any online branch. It can be opened with a minimum amount of only Rs. and comes with a variety of free benefits. monitored by our Shariah Advisor and the Shariah Supervisory Board Key features Apart from first class service and personalized attention that our customers get when they bank with us.000. Profit Rates (% per annum) 4. 10. The profit on this account is calculated and paid on a monthly basis. a foreign-
. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah.000 Riba Free COII Holders may open accounts without any minimum balance requirements
Riba Free Rupee Saving Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. while enjoying a range of added benefits.99%
Dollar Saving Account – DSA
Meezan Bank is pleased to offer Riba-Free Dollar Saving Account.
Minimum amount required to open account= Rs.
Thus Meezan Bachat Account offers a higher expected rate of return with the convenience of a savings account. With a minimum of only $100 you can open a Dollar Saving Account with us under a Mudarabah arrangement that is strictly in conformity with the principles of Islamic Shariah. You receive profit even if your balance falls below Rs. With a Meezan Bachat Account. The Riba-Free Meezan Bachat Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah. you are entitled for a higher the profit with a higher account balance. 2009 to February 28.000/. you shall be eligible to receive profits that shall be disbursed to you every month Applicable for profit payment on average monthly balances between the period February 01.in any one month. monitored by our Shariah Advisor and the Shariah Supervisory Board.
. 2009 Period On Average Monthly Balance Monthly Profit Rates (% per annum) 0. The return earned on the Mudarabah pool is calculated every month and the profit ratio for all investors is declared at the beginning of the month. If you maintain a minimum average monthly balance of $ 500. 25.84%
Meezan Bachat Account
Meezan Bachat Account is a unique saving account that provides high monthly returns with the flexibility to withdraw savings if needed. Profit is credited to your account every month and is calculated with reference to the minimum balance maintained in the account during the preceding month.currency based investment opportunity that is set up on the principles of Shariah and as a result is free from the element of interest.
Karobari Munafa Account
Karobari Munafa is a savings account specifically tailored for large Corporate or GoP controlled entities. 2009 Minimum Monthly Balance (PKR) 1-24. It has no preset transaction limits and comes with a variety of free packaged benefits.99K 200K-499.99% 6.31% 8. Specialized 8 to 8 Banking at selected branches
Profit Rates are applicable for profit calculation on minimum monthly balance between the period February 01. 2009 to February 28. Key Features
Profit will be calculated on a Daily Product Basis
.40% 0. 1.000.Key Features Enjoy a range of valuable features including:
Highest expected rate of return
• • • • • •
Riba-free profit paid every month Minimum balance for account opening is just Rs.22% 7. It allows customers to earn higher returns on surplus cash balances.999K 25K-199.25.99K 500K-1M Above 1M Profit Rates (% per annum) 4.000/Personal financial consultancy services.000/Maximum balance limit for getting highest profit rate is Rs.
KAROBARI MUNAFA ACCOUNT PLUS Daily Account Balance (PKR) 1 Million .97% 18.104.22.1689.99 Million 10 Million .• • • •
Minimum balance requirement for account opening is Rs.99 Million 200 Million .99 Million 500 Million and above Profit Rates (% per annum) 4.97% -
.52% 7.99 Million 50 Million .99% 9.99 Million 5 Million . 1 Million No restriction on deposits and withdrawals Free facilities: chequebooks and payorders Dedicated account / relationship manager
The Karobari Munafa Account works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah.49% 6.99% 6.49% 6.53% 6.99. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah.99.4.99 Million 200 Million and above Profit Rates (% per annum) 5.99 Million 100 Million . 2009 (for KMA & KMA Plus both) KAROBARI MUNAFA ACCOUNT Daily Account Balance (PKR) 1 Million .49.99 Million 300 Million .99 Million 100 Million .99 Million 50 Million .199.99 Million 10 Million . monitored by our Shariah Advisor and the Shariah Supervisory Board Applicable for profit calculation on daily account balances between the period February 01.99 Million 5 Million .499. 2009 to February 28.199.
At the end of the month. The profit is distributed to the account holders on the basis of predetermined weightages. Dollar Deposit Accounts and Term Certificates Meezan Banks profit sharing ratio (as Mudarib) ---. the Bank consolidates the Profit figures. At the beginning of the month Meezan Bank announces any change in the above mentioned Profit Sharing Ratio* for the coming period. Monthly Mudarabah Certificate. Rupee Deposit Accounts and Certificates Meezan Banks profit sharing ratio (as Mudarib) ---. Karobari Munafa Account. etc.50% of Gross income.50% of Gross Income. the Bank uses these funds /deposits to provide Islamic Financing to other Customers on the basis of Murabaha. Istisna etc. Meezan Providence. etc.
Profit sharing weightages:
. including all term deposits e. Ijarah. as per the rules of Mudarabah.
Profit sharing ratios:
The current Profit Sharing Ratio between MBL (as Mudarib) and the Depositors (as Rab ul Maal) is as follows: 1. also announced at the beginning of the month. and calculates the Gross Income. the deposit pool shall bear the loss in the ratios of investment of depositors.g Meezan Amdan.) and (COIIs.Meezan Bank’s Savings Accounts (including Meezan Bachat Account.) are based on the Islamic principle of Mudarabah. 2. Depositors profit sharing ratio (as Rab ul Maal) ---. The Gross Income is calculated after deducting costs and expenses directly incurred in deriving that Income. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab ul Mal) on the basis of a pre-determined profit sharing ratio announced at the beginning of the period.50% of Gross Income.50% of Gross income. In case of a loss. Depositors profit sharing ratio (as Rab ul Maal) ---. based on their respective category/tiers. Mudarabah is a form of partnership in which one partner invests funds (called the Rab ul Maal) while the other partner is the working partner (called the Mudarib) and is responsible for prudent management of funds. During the month.
Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah.000 and tenures from 3 months to 5 years. Amount of Profit shall be derived and announced on monthly basis.
Certificate of Islamic Investment
The Riba Free Certificate of Islamic Investment Certificate is a Shariah compatible investment certificate with a minimum investment of Rs. 200. However.000) Quarterly profit on 1. At the end of the month. Profit on investment may be earned on the following basis: • • • • Monthly profit on 1. 3 and 5 years At maturity profit payment for all tenures Withdraw your investment any time during the course of your investment. (Profit shall be paid only after completion of one month of investment)
Riba-Free Certificate of Islamic Investment (COII) works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah.Profit Sharing Weightages for various categories / tiers of deposits and COIIs are also announced at the beginning of the month for the coming period. any change in the Profit Sharing Weightages for the next period will also be announced by the Bank at the beginning of the month. Announcement of any change in Profit Sharing Ratios and Profit Sharing Weightages for the coming period by the 1st of that month. 50. the Bank may unilaterally reduce its profit sharing ratio for the benefit of depositors. 2. Invest in Certificate of Islamic Investment Riba-Free COII is available at all branches of Meezan Bank Ltd. We invite you to visit any of our branches to experience the comfort of our personalized service. monitored by our Shariah Advisor and the Shariah Supervisory Board. 2.
. 3 and 5 years (Minimum Investment Rs.
50% Monthly Rates 7.68% 9.99% 7. fill in the Account Opening Form.To make an investment the bank requires customers to maintain either a current or a saving account with Meezan Bank.86% 9. bring in the required documents. Additional Features Enjoy a range of valuable features including:
• • • • • •
High and very competitive returns Long-term security ensured Pre-mature withdrawal options available Free Online Banking services at any of our branches 24/7 Call Center with complete Tele-banking services Specialized 8 to 8 Banking at selected branches
Certificate of Islamic Investment .11% 7. and get introduced by an existing banker.COII Profit Rates are applicable for profit payment on investments maturing between the period February 1.73% 12.98% 10. In order to open an account.47% 8.11%
Meezan Amdan Certificate
. 2009 % per annum Tenures Three Months Six Months One Year Two Year Three Year Five Year Profit Rates at Maturity 7.02% 10.79% 8.20% 9.25% 10.09% Quarterly Rates 8. 2009 to February 28.
monitored by our Shariah Advisor and the Shariah Supervisory Board.The Riba-Free Meezan Aamdan Certificate (MAC) is a long-term deposit certificate with an exceptionally high monthly profit designed especially for those individuals and corporations who are in need of regular stream of monthly income.and above ( 5 per month) Free Online Banking services at all Meezan Bank branches nationwide Free Internet banking facility 24/7 Call Center with complete Tele-banking services Specialized 8 to 8 Banking at selected branches
Invest in the Meezan Aamdan Certificate Invest. Simply submit a completed application form. in Riba-Free Meezan Aamdan Certificate (MAC) and enjoy personalized banking services from any Meezan Bank branch across Pakistan.500. the Meezan Aamdan Certificate and is strictly in conformity with the rules of Islamic Shariah. Pre-mature withdrawal options available. along with the relevant documents.000/. MAC is a monthly income (mahana aamdani) certificate with a variety of free packaged benefits. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah. Key Features Enjoy a range of valuable features including:
• • • • • • • • • • • • • •
High and very competitive returns Ensured Long-term security Minimum investment amount: Rs.000/Special attraction for Widows and Senior citizens with minimum investment of PKR 50.
. Free cheque book Free ATM withdrawals on investment of Rs.000/Available tenures of 5½ years and 7 years Profit payment on monthly basis. 100. Working under the principles of Mudarabah.
Finally. your main concerns would be total security along with the best returns possible. a benefit you may not have had the opportunity to enjoy before and one that you can now pass on to your employees. Furthermore.14%
Meezan Providence Certificate
Meezan Providence Certificate is a long-term investment certificate specially designed to cater to the needs of corporate and business concerns for purposes of investing their Provident.
. our sterling track record shows consistently beneficial and highly competitive returns for our broad range of investors. 2009
Period 5 1/2 years 7 years
Monthly Profit Rates (% per annum) 11.Make an appointment with our officer to assist you in making an investment or call our 24/7 Call Center to answer any of your queries. comes the benefit of truly Halal returns. including a capital adequacy ratio that has placed the Bank at the top of the industry.96% 14. Meezan Providence rests on the well known and solid financial strength of Meezan Bank. and a short-term entity rating of A1. 2009 to February 28. Meezan Amdan Certificate – MAC Profit Rates are applicable for profit payment on investments maturing between the period February 1. a long-term entity rating of A+. especially as these funds are a trust from your employees and one that bears an important responsibility. Pension and Gratuity Funds. many of whom would be grateful for such an opportunity. As any prudent investor. which has a strong and credible balance sheet with excellent operating profitability.
5 and 7 years Pre-mature withdrawal options available
Eligibility Criteria Investing is simple and easy. as all you need is:
To have a registered or unregistered Employee Provident/Gratuity/Pension Fund.000 Available tenures of 2. 2009 to February 28. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah. seek to guarantee equal access to all qualified applicants. as prescribed by Islamic Shariah. Meezan Providence Certificate – MPC Profit Rates are applicable for Meezan Providence Certificate balances between the period February 01. 3.Riba-Free Meezan Providence Certificate (MPC) works under the works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah.000. while ensuring that the qualification process is bias-free. Have operations based in Pakistan. 2009 Period Two Year Three Year Five Year Seven Year Period Profit Rates at maturity (% per annum) 10.
We at Meezan Bank. Key Features Enjoy a range of valuable features including:
• • • • • •
A 100% halal investment in strict compliance with Shariah High Returns Long-term security ensured Minimum investment amount: PKR 1.82% 6 Monthly Profit Rates (% per
.11% 11. monitored by our Shariah Advisor and the Shariah Supervisory Board.
annum) Two Year -
500 Mn & above
Additional Features During your relationship with us. Working under the principles of Mudarabah and in strict conformity with the rules of Islamic Shariah.99 Mn Rs.99 Mn Rs. 49. 100.99 Mn Rs. 499. the Profit calculation of Monthly Mudarabah Certificates and all other banking transactions are in strict adherence to the Islamic Shariah. 5. 10 Mn up to Rs. The weightages used for profit calculation of the Monthly Mudarabah Certificate are in the following tiers:
• • • • • •
Rs. 100K up to Rs.00 Mn up to Rs. The minimum investment required is only Rs.
• • •
A 100% halal investment in strict compliance with Shariah Monthly profit payment to your current or saving account with us Pre-mature withdrawal options available
. 9.99 Mn Rs. 50 Mn up to Rs. monitored by our Shariah Advisor and the Shariah Supervisory Board. you would be entitled to receive the following additional benefits.99 Mn Rs. 99.Monthly Mudarabah Certificate
Riba Free Monthly Mudarabah Certificates is a flexible rupee based investment which has been designed to give you a monthly return. 100 Mn up to Rs.000 and you receive profit for each complete month of investment with the Bank. 4.
. Make an appointment with our officer to assist you in making an investment or call our 24/7 Call Center to answer any of your queries. 2009 Average Monthly Balance (PKR) 100K & Above Profit Rates (% per annum) 7. The Certificate works under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. Profit calculation and all banking transactions are in strict adherence to the Islamic Shariah.
Monthly Mudarbah Certificate – MMC Profit Rates are applicable for Monthly Mudarbah Certificate balances between the period February 01.24%
Dollar Mudarabah Certificate
The Riba Free Dollar Mudarabah Certificate is a flexible dollar based investment which has been designed under the principles of Mudarabah and is strictly in conformity with the rules of Islamic Shariah. After opening of an account. 2009 to February 28. monitored by our Shariah Advisor and the Shariah Supervisory Board. you can get your certificates and enjoy our personalized banking services.•
Bank balance certificates
Invest in a Monthly Mudarabah Certificate Just fill in the Account Opening Form and bring in the required documents.
57% 1.Enjoy a range of valuable features including:
• • • • • •
High and very competitive returns Six monthly profit payment to your current or saving account with us Long-term security ensured.49.75% 1. and 3 years Pre-mature withdrawal options available Bank balance certificates
Profit Rates are applicable for profit payment on investments maturing between the period February 1.83%
Profit Rates (% per annum) 50K & Above Six Monthly 1. 2009 Period Three Months Six Months One Year Three Year Period Three Months Six Months One Year Three Year
Profit Rates (% per annum) 10K . Minimum investment amount: USD 10.75% Maturity 1.000/Available tenures of 3 months. Pakistan’s First Islamic Car Financing
.9K Six Monthly 1. 6 months. 2009 to February 28.83% 1. 1 year.92%
Car Ijarah.70% 1.70% 1.62% 1.62% 1.44% 1.89% Maturity 1.
As a step towards Meezan Bank’s mission to provide a one-stop shop for innovative value added Shariah compliant products. Meezan Bank’ Car Ijarah is a car rental agreement. Meezan Bank also provides the unique opportunity of leasing second hand. Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing mode of Ijarah (Islamic leasing). not in advanced Fastest processing and delivery Tracker option available Minimum security deposit as low as 10% All new. This product is ideal for individuals looking for car financing while avoiding an interest-based transaction. The Used Car Ijarah facility is made available at a minimum-security deposit as low as 20%. This feature is specifically designed as a highly economical option. Upon completion of the lease period the customer gets ownership of the car against his initial security deposit. based on the principles of Ijarah and is free of the element of interest. agreed at the time of the contract. used. Car Ijarah also features Used Vehicles!
In addition to our leasing of new cars. local. Meezan Bank’s Car Ijarah unit provides a car financing. under which the Bank purchases the car and rents it out to the customer for a period of 3 to 5 years. Financing of used cars are subject to a selection criteria. imported and luxury vehicles can be financed
. both locally assembled and imported vehicles. Key Features of Car Ijarah
• • • • • •
Low monthly rental Rental paid after delivery.
thus achie-ving that complete inner satisfaction and peace of mind. taxes. in a truly Shariah-compliant manner coupled with dedicated service excellence. currency devaluation… it’s all a very hard bargain. owning your own home and paying an easy installment. Why is Halal home finance so important to you? Owning your own home is one of life’s most important achievements. However. inflation. where the Bank will provide a certain amount of financing (usually up to 80%). which takes you step by step towards complete ownership. It represents your security. you become the sole owner with a free and clear title to the property. the total monthly payment is reduced regularly as your share in the property grows. It provides that all-important safety and comfort for you and your loved ones. and is a great blessing in itself.
. On the other hand. saving the required money can take a lifetime in itself. which had been agreed upon. in today's often unpredictable and costly environment. You agree to a monthly payment to the bank of which a component is for the use of the home. we are committed to meeting our customers’ needs. affordable. Why not have the best of both worlds? Isn't that what you are working so hard for anyway? Islamic Financing on a Diminishing Musharakah basis With Easy Home you participate with Meezan Bank in a joint ownership of your property. When you have made the full investment. and another for your equity share. For at Meezan Bank. is so much better than paying rent which ultimately only adds to your expenses. stability.Easy Home
Welcome to Pakistan’s long awaited totally Shariah-compliant Home Finance facility! One that is comprehensive. Rising property prices. and totally hassle-free. Meezan Bank’s Easy Home is the answer you’ve been waiting for. Added to that is your desire to stay away from interest based financing and be totally riba-free. In fact.
the profit margin is directly correlated to market trends to provide a competitive product to our customers. The mere fact that the applied profit rate of our product is based on similar factors used in determining the applied rate of interest of a mortgage does not render the transaction or the contract invalid from the Shariah perspective. for example in the case of buying a home. The nature of the contract is a co-ownership and not a loan because the transaction is not based on the lending and borrowing of money but on the joint ownership of an asset. Meezan Bank provides financing up to 70%(salaried.
. SEP. it is the underlying structure of the product that determines its Shariah compliance. Your payments to Meezan Bank are completely riba-free. In conventional mortgages the interest charged is a mark-up on the money lent. The profit charged by Meezan Bank is the utilization payment for your use of our share throughout the life of the contract. On the other hand. and neither does it make the transaction an interest-bearing one. and a maximum of 60%(Businessman) up to a value of Rs 5 Million for a tenor of up to 20 years.What specifically makes Easy Home Shariah compliant? As a Diminishing Musharakah it conforms to Shariah laws specifically related to financing. Shariah allows the use of any conventional market factor as a benchmark to determine the profit rate of a particular product. Meezan Bank shares in the cost of the asset being purchased. Why is the profit margin charged by Meezan Bank correlated to the conventional mortgage market trends? At Meezan Bank. ownership and trade. SEP. and NRP) of the appraised value or Rs. 40 million. Building a home is Easy & Halal! For that special home you want to build yourself. Taking ownership through a partnership and then transferring complete ownership to the consumer instead of simply lending money is the major factor that makes our product Shariah compliant. 40 million. Buy. or Replace!
Buying a Home is Easy & Halal! Choose it and be ready to move in. Meezan Bank will finance up to maximum of 70%(Salaried. Renovate. NRP) of the appraised value of your new home or up to a value of Rs. and a maximum of 60% (Businessman) up to a value of Rs 5 Million with a financing tenor of up to 20 years. Build.
Our Remittance services are simple and reliable. NRP) and Rs 5 million(Businessman) and a tenor of up to 20 years. Now continue to enjoy your home but with the added satisfaction and peace of mind you have always wanted. as prescribed by Islamic Shariah.
Come and take the step towards Riba-Free financing for your home.
Special Benefits of Easy Home
Flexible Financing Tailored to Support You o High financing amounts o Adequate financing against property value o Flexibility to make partial prepayments o Minimal processing charges o Affordable and competitive installment amounts with a regular reducing monthly rental o Rate relaxtion for select MNCs & LCGs Quick Processing Time Absolutely hassle-free. while ensuring that the qualification process is bias-free.• •
Renovating your home is Easy & Halal! Making your home even better or just repairing it. Quick turn-around-times. and easy! Even the eligibility is Easy! We at Meezan Bank. Meezan Bank helps with financing up to 30% and a financing tenor of up to 15 years. with no burdensome complexity or excess paper work. It is simple. They are available at your doorstep through a wide and efficient network of corresponding banks worldwide. seek to guarantee equal access to financing for all qualified applicants. Financing up to Rs.
. halal. Replacing your existing Mortgage is Easy & Halal! The wait is over. Only leading global financial institutions form this network of correspondent banks. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing. SEP. 40 million(Salaried. made easy with Meezan Bank's Easy Home! Non-Resident Pakistani Banking Welcome to Meezan Bank’s Non-Resident Pakistani Banking! Where you are important and your needs exclusive.
simply give instructions to your existing bank for money transfer by providing the name of your preffered Meezan Bank branch and beneficiary account number. we are continuously working not only to improve and strengthen our customer relationships but to further provide new and better products and services to our customers. JPY.e USD. SGD. GBP.000 per day.
The purchase limit on your Debit Card is PKR 50. AUD Extensive branch network in all major cities of Pakistan Instant online transfer within our branch network without any charges Free Internet banking facility
• • •
Easy Guidelines for Money Transfer If you wish to remit money to Pakistan. 150 millionAs the • Your annual sales turnover is Rs. always enter it yourself.
Corporate Banking Customers
You are a Corporate Banking Customer if You need funded and non-funded lines of over Rs. and on an Orix machine. 800 million or first and largest Islamic more Bank in Pakistan.
At merchandising outlets. make sure that your ATM / Debit card is swiped only ONCE. Never tell your 4-digit PIN CODE to the merchant. we are dedicated to providing you Shariah-Compliant financing. subject to sufficient funds being in your selected account to cover your transaction. CHF. EUR.Advantages of Meezan Home Remittance:
Quick Remittance in major currencies i. With our extensive and dynamic product portfolio. in your presence.
Choose from our range of products that suits your needs:
Murabaha is based on the exact requirements of each customer. rather than advancing money to the customer. when the cost price is disclosed to the client. The cost and profit margin to the bank is expressly disclosed to the customer. if you need finance for purchasing raw materials for your industry or are trading in goods then you could use Mudarabah or Istisna’a to meet your financial needs. designed to meet working capital requirements. it is called Murabaha. price is fixed with the consent of all
. Istisna’a Istisna’a is a sale transaction where a commodity is transacted before it comes into existence. Expansion or BMR Requirments Islamic Export Refinance Facility Trade Related Services
Working Capital Finance Solutions for short term financing requirements Part of the wide range of Shariah complaint solutions for our customers are Murabaha and Istisna’a. The manufacturer (our customer) uses its own material to manufacture the required goods. In Istisna’a. which includes an element of profit. Hence Murabaha involves the purchase of a commodity by Meezan Bank on behalf of a customer and the subsequent resale to the customer on cost-plusprofit basis.• • •
Working Capital Finance Project Financing. It is an order to manufacture a specific commodity for the purchaser. Meezan Bank buys the commodity from a third party and sells it to the customer at an agreed price. Murabaha One of the most common modes of finance employed by Islamic Banks. For example. So what is the difference between Murabaha and a Sale? A simple sale in Arabic is called Musawamah . it is not a loan given on interest it the sale of a commodity on a deferred price. Thus. It can be defined as a sales transaction where Meezan Bank purchases the commodity and sells it after adding an agreed profit. However. Simply put.a sale that does not involve disclosing or referring to the cost of goods sold.
Islamic Export Refinance Facility
. Similarly all other necessary specifications of the finished product are agreed beforehand. project financing and for retail products such as homes and automobiles. Over time. making him or her the sole owner of the asset or the commercial enterprise.
Project Financing. Ijarah is commonly used for long and medium term fixed asset financing. projects. Meezan Bank and the customer participate in the joint ownership of an asset. this mode of financing is based on the provision of the required tangible assets. The concept is similar to “leasing”. The asset is divided into a number of units and the customer periodically purchases these units from the bank over a specified period. the customer purchases all units owned by the bank.
Ijarah In contrast to diminishing musharakah. Expansion or BMR Requirement Solutions for medium and long term financing requirements
Two of the most commonly used Islamic financing solutions availed by businesses today. on rental for an agreed period of time. BMR requirements or other medium to long term financing requirements. which is common in conventional banking. Istisna’ as a mode of financing Istisna Finance is used to cater for the working capital requirements of a business involved in the manufacturing of goods. such as property.parties involved. Diminishing Musharakah and Ijarah are ideal for expansion of businesses. It is ideally suited for exporters and manufacturers who have export orders in the shape of Sight/Usance Letter of Credit/ Sight Export Contract D/P/ Usance Export Contract D/A. Diminishing Musharakah Using this financing model. machinery. However there are some specific prohibitions which render conventional leasing to be forbidden under Shariah. etc. homes and automobiles. Diminishing Musharakah is most commonly used for the financing of fixed assets.
Based on various modes of Islamic Finance. 800 million You need funded and non-funded lines of over Rs. we recognize the significance of the Commercial Banking sector in the country and the diverse business needs. Catering to the need for Shariah Compliant financial solutions in this sector. our evergrowing commercial banking clientele covers medium-size industries. 300 million but less than Rs. This product provides for all the unique requirements of exporters and is available in both Part-I and Part-II as per the original Export Refinance Scheme of the State Bank of Pakistan. A complete range of products and services for importers and exporters are available. 150 million
As the first and largest Islamic Bank in Pakistan. 75 million but less than Rs. traders. importers. exporters and distributors. Choose from our range of products that suits your needs:
Working Capital Finance Project Financing. Expansion or BMR Requirments
.The launch of this product made Meezan Bank the first Islamic bank in Pakistan to offer Refinance facilities with complete compliance to Shariah. Some of the key services offered include:
Letter of Guarantee Facility Products for Exporters o Export bills for collection o Export (Sight) bills purchase under Salam Arrangement o Export (Usance) bills purchase under Murabaha Arrangement Products for Importers o Sight Letter of Credit
Usance Letter of Credit Commercial Banking Customers You are a Commercial Banking Customer if: Your annual sales turnover is over Rs. the solutions have been designed to suit the needs of our customers.
300 million As the first and largest Islamic Bank in Pakistan. 75 million
Syndication Structuring Privatization Mandates Mergers & Acquisitions Advisory Services
. Meezan Bank is committed towards developing tailored financial solutions and expanding our footprint in the SME sector. SMEs are categorized in Pakistan as Trading and Service concerns employing maximum 50 staff and having total assets (excluding land and building) of Rs. we are proud to be providing financial solutions for the needs of the Small and Medium Enterprise Sector (SME) in the country.• •
Islamic Export Refinance Facility Trade Related Services
Small & Medium Enterprise (SME)
You are a SME Banking Customer if:
Your annual sales turnover is upto Rs. Meezan Bank as torchbearer of Islamic Banking has made a significant contribution in the Investment Banking industry by playing leading roles in business transactions amounting to PKR 53 billion in the year 2007. 50 million (max) and the Manufacturing concerns employing maximum 250 staff and having total assets (excluding land and building) of Rs. Key Services
• • • •
You need funded and nonfunded lines of upto Rs. a specialized unit focusing on Investment Banking has been established at Meezan Bank. The Investment Banking department provides unique structuring capability using complex Shariah structures for transactions so as meet customer need. The growth in the SME sector in Pakistan in recent years has been a major contributor to the growth in the national economy.100 Million (max). Investment Banking Realizing the increasingly diverse needs of our customers for advisory and structured finance transactions.
Meezan Bank’s treasury is guided by Shariah with the objective of reviewing. primarily focuses on building and maintaining relationships.
.I. Customers are also provided advice on a regular basis about the currency movement by our dealing room augmented by market outlook (without any commitment & obligation) Treasury has enhanced its market activity with increased depth and enhanced volumes. With over 172 banks in 91 countriies. Advising (Adv) & Confirmation (Conf). discounting of letter of credits. WAPDA. Ready/ spot as well as all forward cover services are provided to branches/customers within Shariah guidelines. our 494 globally located correspondents provide all trade services seeking to add value and service to our branches and functional units. and controlling the bank’s domestic and international treasury related operations. Treasury caters to the branches and customers for their entire foreign exchange requirement with efficiency and professionalism. Qatar. making an impact in the inter-bank FX market. This treasury is the only treasury in Pakistan with a mandate to provide Shariah compliant investment opportunities in capital market that provides halal income ultimately to shareholders
Financial Institutions. For your convenience we have defined type of services provided by our correspondent banks in terms of Remittance & Payments (R/P). Meezan Bank conducts Commodity Murhaba transaction to optimize its returns on its dollar portfolio. Due to its good relationship with other treasuries.g. the institution has the ability to generate sufficient amount of liquidity at a time through inter-bank market on Shariahapproved Musharaka basis. Corresponding Network Our network of correspondent banks comprises of leading financial institutions around the globe. Dubai sukuks. Relations range from authenticated communication links by way of SWIFT BKE to Trade. the ever-increasing BKE relationships with financial institutions serves to route all kinds of transactions. etc. besides participating in local/ international sukuk issues. e. confirmation. Further. Group. part of Treasury and F. reimbursement undertakings and standby LCs and guarantees. Treasury and account maintenance in different currencies worldwide. Services include advising. streamlining.
PKR 10. easy accessibility. calculated after deducting costs and expenses directly incurred in deriving that Income. the respective Islamic Banks are the Investors (Rab ul Maal). by maintaining a checking account with Meezan Bank. Under this relationship. at its sole discretion may give additional profit to depositors from its own profit share. In the case of a loss. The Bank. Meezan Bank allocates the funds received from the Islamic Banks to a deposit pool consisting of financing under Islamic modes that includes. at the time of profit declaration. the deposit pool shall bear the loss on a appropriate basis. Murabaha and Ijarah.000. and as per the rules of Mudarabah. but is not restricted to. and Meezan Bank is the Manager (Mudaarib) of the funds deposited by them. total stability. With MIIDA. and absolute Shariah compliance. tailored exclusively for Islamic Financial Institutions (IFIs). The Banks profit sharing ratio is 50% of Gross Income and Depositors profit sharing ratio is 50% of Gross Income.or multiples thereof Maximum investment amount – PKR 1 billion
. The weightages are available on this website or can also be obtained upon request. Deposits invested under a Mudarabah arrangement Minimum investment amount. Key Features The features and mechanics of the product are detailed below providing a ready-made solution ensuring high returns.
• • • •
A Checking Account only available for IFIs.The Meezan Islamic Institution Deposit Account (MIIDA) is a unique product.000/. Structure of MIIDA All eligible Islamic Banks can enter into a Mudarabah relationship with Meezan Bank. any IFI now has the opportunity to manage excess liquidity in an immediate and profitable manner.
2007 was over PKR 15 billion as compared to PKR 6.20%
The Asset Management and Investment Advisory Arm of Meezan Bank Limited Al Meezan Investment Management Limited (Al Meezan Investments).99 million Above 400 million Profit Rates (% per annum) 6. notice for PKR 50 . notice for 200M+ deposit Profit disbursed on a monthly basis Profit calculated on daily product basis
Meezan Islamic Institution Deposit Account – MIIDA Profit Rates are applicable for profit calculation on daily account balances between the period February 01. Pakistan’s first Shariah compliant open end income fund and Meezan Tahaffuz Pension Fund (MTPF). 2009 Tier (PKR) 10 million to 199. Meezan Islamic Income Fund (MIIF).•
Withdrawals of funds : o 24 hrs.31% 8. 2009 to February 28. The total size of the five funds under management as at December 31. Meezan Balanced Fund (MBF).5 billion at the corresponding date last year.e. Al Meezan Investments has one of the longest and the most successful track record of managing mutual funds in the private sector.76% 7. spanning over twelve years. Al Meezan Investments is presently managing five funds i. specializes exclusively in the development and management of Shariah compliant products. a closed end balanced scheme. an open-end equity fund. the asset management and investment advisory arm of Meezan Bank Limited. Meezan Islamic Fund (MIF). a closed end equity fund.200M deposit o 48 hrs. a Voluntary Pension Scheme. Al Meezan Mutual Fund Limited (AMMF). The
.99 million 200 million to 399.
assigned by JCR-VIS.041 168
Al Meezan Investments has also achieved Management Quality Rating “AM2”. 2007 is as under: NET ASSETS FUND Meezan Islamic Income Fund Meezan Islamic Fund Meezan Balanced Fund Al Meezan Mutual Fund Meezan Tahaffuz Pension Fund PKR (Millions) December 31.increasing size of assets under management manifests the ability of the professional fund management team to consistently out-perform its peers and consequently build the investor confidence. The fund wise break up of net assets as at December 31. Hence it has the distinction of being the first asset management company in Pakistan to comply with the best global practices in asset management.776 4. MCPF-1 provides investment opportunity to the investors who desire high level of protection of their capital. In addition to the quality service. very soon we will be launching yet another specialized product Meezan Capital Protected Fund-1(MCPF-1). The Shariah Advisor of Meezan Bank Limited. Shariah compliance and impressive performance in terms of returns to investors. willing to invest for relatively longer period and want to get benefit of any gain from investment made by the fund in the stock market. AM2 denotes high management quality rating. In continuation with our endeavor to provide Shariah compliant investment solutions. 2007 6. All the funds of Al Meezan Investments with a minumum one year track record have 5Star rating which is the highest possible rating and denotes superior performance relative to its peers. also being the Shariah Advisor of Al Meezan Investments. USA.
. Al Meezan Investments also complies with the global best practices in asset management and has voluntarily adopted “Asset Manager Code of Professional Conduct” from CFA Institute.613 1. Al Meezan Investments is ranked among the best performing asset management companies in Pakistan. supervises the operations in order to ensure Shariah compliance of the funds.467 2.
99M 100M-199.07 1. Corporate Advisory & Structured Finance Realizing the increasingly diverse needs of our customers for advisory and structured finance transactions.07 1. The Investment Banking department provides unique structuring capability using complex Shariah structures for transactions so as meet customer need.
Current Weightages Meezan Bank is pleased to declare the current weightages which are used to calculate the distribution of profit as per the requirements of Shariah. Meezan Bank as torchbearer of Islamic Banking has made a significant contribution in the Investment Banking industry by playing leading roles in business transactions amounting to PKR 53 billion in the year 2007.99M 5M-9.Units of all open end funds are available at the offices of Al Meezan Investments and all branches of Meezan Bank Limited (MBL) across Pakistan.93 0.76 0.13
.99M 5M-9.99M 10M-49.76
Karobari Munafa Account Karobari Munafa Account Karobari Munafa Account Karobari Munafa Account Karobari Munafa Account Karobari Munafa Account
1M-4.93 0.76 0. Al Meezan Investments has placed dedicated investment officers at the selected branches of MBL.13 1.99m 200M and above
0.99M 10M-49.99M 50M-99. Rupee products from the month of April 2009 Account Categories Saving Account Profit Distribution Periods/ Tier groups monthly Weightage Assigned 0.28
Karobari Munafa Account Plus Karobari Munafa Account Plus Karobari Munafa Account Plus Karobari Munafa Account Plus Karobari Munafa Account Plus
1M-4.99M 100M-199. For the convenience of investors. These officers provide guidance and assist the investors in meeting their investment objectives.99M 50M-99. a specialized unit focusing on Investment Banking has been established at Meezan Bank.99 1.
Weightages for Pak.99 1.99m
12 months Certificate of Islamic Investment .07 1.11 1.46 1.99M 500M and above
Meezan Aamdan Certificate 5 1/2 years Meezan Aamdan Certificate 7 years
1.2 years Certificate of Islamic Investment .12 months Certificate of Islamic Investment .Karobari Munafa Account Plus Karobari Munafa Account Plus Karobari Munafa Account Plus
200M .27 1.3 years Certificate of Islamic Investment .54 1.30 1.76 0.46 1.93 1.04
Meezan Islamic Institution Deposit Account Meezan Islamic Institution Deposit Account Meezan Islamic Institution Deposit Account
10M-199.30 1.7 years
6 Monthly Maturity Maturity Maturity Maturity
0.28 1.12 1.5 years Meezan Providence .69 1.5 years
3 months 6 months Monthly Quarterly Maturity Monthly Quarterly Maturity Monthly Quarterly Maturity Monthly Quarterly Maturity
1.6 months Certificate of Islamic Investment .3 years Certificate of Islamic Investment .42 1.99M 300M-499.99K 25K-199.22 1.299.20 1.71 1.46 1.81
Meezan Providence .47 1.90
.2 years Certificate of Islamic Investment .3 years Meezan Providence .2 years Meezan Providence .5 years Certificate of Islamic Investment .04 1.9M Above 400M
0.22 1.14 1.33
Monthly Mudarabah Certificate
100K and above
1.3 years Certificate of Islamic Investment .2 years Certificate of Islamic Investment .13
Certificate of Islamic Investment .15 1.5 years Certificate of Islamic Investment .12 months Certificate of Islamic Investment .3 months Certificate of Islamic Investment .2 years Meezan Providence .9M 200M-399.98
Meezan Bachat Account Meezan Bachat Account
84 0.77 0.01
Meezan Business Plus
0.1 year Certificate of Islamic Investement .3 months Certificate of Islamic Investement .22 0.49.87 0.9K 50K & Above 10K .05 1.9K 50K & Above 10K .98 0.9K 50K & Above 10K .3 years Certificate of Islamic Investement .45
Certificate of Islamic Investement .Meezan Bachat Account Meezan Bachat Account Meezan Bachat Account
1.98 1.1 year Certificate of Islamic Investement .6 months Certificate of Islamic Investement .9K 50K & Above
0.49.9K 50K & Above 10K .94 1.3 years
Maturity Maturity Maturity Maturity 6 Monthly 6 Monthly Maturity Maturity 6 Monthly 6 Monthly Maturity Maturity
10K .1 year Certificate of Islamic Investement .01
Equity Weightages for foreign currency products from the month of April 2009
1.91 0.3 years Certificate of Islamic Investement .49.03
.6 months Certificate of Islamic Investement .9K 500K-1M Above 1M
1.91 0.1 year Certificate of Islamic Investement .39
Dollar Saving Account
0.9K 50K & Above 10K .87 0.01 0.49.94 0.3 years Certificate of Islamic Investement .49.49.3 months Certificate of Islamic Investement .