Bank Nizwa distributes 2.1% profits on Mudaraba Investment Accounts

Proving its constant upward performance, Bank Nizwa announced its highest ever profit returns to depositors availing of its Mudaraba Investment Account reaching 2.1% for one year tenor as of April 2016. The bank’s Saving Account has also been one of the most competitive investment tools in the market reaching approximately 1.05% profit returns from 0.22% three years ago, when the bank opened its doors for business.

Depositors can invest with a choice of a Mudaraba Investment Account, which invests in a diversified portfolio of Shari’a-compliant assets that are in line with their investment objectives. Customers also have the option of depositing in a Saving Account, which allows depositors to enjoy full flexibility of withdrawing money at any time at their convenience, while still receiving high profits rates. To provide long term investment options, the bank has introduced two new tenors of 18 and 24 months, while retaining its existing five tenor options ranging from one to 12 months.

“The increased demand on the Mudaraba Investment Account demonstrates customers’ growing confidence in our investment abilities,” commented Dr. Jamil El Jaroudi, CEO of Bank Nizwa. “The strong performance is also due to our expertise in constantly analyzing market conditions, identifying growth opportunities and offering insightful recommendations to help customers lead financially secure lifestyles.”

Unlike conventional fixed deposits, the investment account is based on the principles of Mudaraba where profits are shared on a pre-agreed ratio once the maturity period of the investment is reached. The product enables customers to invest on unrestricted basis a minimum of OMR 100 into a Saving Account or a minimum of OMR 1,000 into a Mudaraba Investment Account that is part of the investment pool.

Launched in October 2013, the Mudaraba Investment Account is accessible to individuals, corporate and commercial entities, government institutions, as well as pension and charity funds. It is available in multi-tenor options ranging between one month and two years with monthly and quarterly profit payout frequency options. The performance of the pool is published on a monthly basis and available through the bank’s website, the call center and at any of its 11 branches across the Sultanate. Bank Nizwa also offers customized investment solutions for depositors looking to invest higher amounts under the Islamic structure of Wakala.