UAE: ADIB launches sharia-compliant letter of credit

Abu Dhabi Islamic Bank (ADIB), a leading financial institution in the UAE, has launched Sharia compliant Letter of Credit (LC) financing without recourse. This release is designed to help ADIB boost its global transactional banking business and meet the working capital needs of companies in all industry segments. ADIB has said that the product will support UAE businesses, particularly exporters and business customers, by allowing them to better manage their working capital and receive their payments early, while meeting their importers terms. 

Haytham El Maayergi, Global Head of Transaction Banking at ADIB, says, “Our product delivers immediate benefits to companies, providing a straightforward, secure framework in which to manage cash flow and finance. With growing UAE-based companies increasingly looking internationally for growth, ADIB will continue to act as a financial partner providing banking solutions to promote the development and international expansion of UAE corporates and SMEs."

According to RFi Group data, 1 in 5 UAE SMEs operate in or provide services to markets abroad, suggesting that ADIB’s new loan product is suitable for a large proportion of the market.

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