Full-fledged digital banks are coming through the pipeline in the UAE. Image Credit: Shutterstock

Dubai: A Sharia-compliant digital bank has been set up – Rezq/Baraka has launched operations from the UAE and will have a virtual presence in other Middle East markets as well. It will aim for partner tie-ups with institutions in India, Azerbaijan, Uzbekistan, Indonesia, Malaysia, UK, Australia, Brazil and Mauritania and Africa.

The digital bank is a venture from Zurich Capital Funds Group. "Our main challenge is to create a digital bank compatible with Islamic law, accommodating fast responses to fit into modern life," said Dr. Fahed Al Merhebi, Chairman of Zurich Capital Funds Group. The entity had earlier launched a Sharia-compliant digital crypto exchange platform - Sustain Exchange.

Searching for Zurich Capital Funds Group, the website says it is "presently under development and will be launched very soon".

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"Though our partnerships with Islamic banks and financial institutions, operating in the region, including fintech investments, we are providing advanced digital banking services with careful consideration to customers’ lifestyles and preferences," said Al Merhebi.

The bank offers options that include integrating apps into leading payment gateways, and offer multiple accounts in foreign currencies that can be linked to a single card. Customers can transfer money between these accounts without transfer fees. These accounts are set up in accordance with Islamic law, and all current accounts are without interest, but they provide services and sukuk without minimum daily restrictions. All earned profits are calculated daily and paid monthly.

Sharia Board
The entity has set up a Sharia supervisory authority to provide insight to customers enquiries with immediate responses through social media.