Absa | Bank differently with Shari'ah-compliant banking

Learn more about our Shari’ah-compliant products

Absa’s Islamic banking is advised and guided by the independent Shari’ah Supervisory Committee, a panel of experts in Shari’ah law and its application in economics.

Here’s what you need to know

How can a conventional bank offer Islamic banking services?
Conventional banks can sell Shari’ah-compliant products because Islamic law does not require that the seller of the product be Muslim or that its other services also be Islamic. It does require that the product or service be in compliance with Shari’ah guidelines.

Absa Islamic banking has not only developed Shari’ah-compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking independent Shari’ah Supervisory Committee comprising of eminent scholars in the field of Islamic banking:

Mufti Ashraf Qureishi

Dr Yunoos Osman

Dr Aznan bin Hasan
How can Absa Islamic banking and its products be considered Islamic?

Absa Islamic banking has not only developed Shari’ah-compliant products but it has adopted an end-to-end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking Shari’ah Supervisory Board, comprising of eminent scholars in the field of Islamic banking. The scholars are not employees of Absa Islamic banking and are independent.
What constitutes Riba?

Simply, Riba is also interest. “Any loan that derives benefit”. It could be understood by the following example: If person A lends person B R10 000 and requires B to pay him R11 000 after four months, the additional R1000 is interest and impermissible.

Note: Riba is a fundamental prohibition in terms of Islamic law.
Is my debit card for use in other countries?

Your Absa Islamic banking debit card can be used for transactions in SA and internationally wherever you see the Visa / Visa Electron or Maestro / MasterCard logos are displayed. The logo on your debit card will guide you on where your card may be used e.g. at retailers that accept MasterCard.
Are the Islamic products for Muslims only?

Islamic deposits are ringfenced within Absa and utilised to fund Shari’ah Compliant financing and trading activities. The profits generated from these commercial transactions are then shared with depositors according to the agreed upon profit share ratios applicable to the relevant Savings and Investments products offered.
Islamic Personal Banking Brochure

Download your brochure to find out how you can manage your finances in line with Shari'ah law.

More about Shari'ah-compliant banking

How are the profits generated?

Profit is calculated on the average daily balance.
Capitalisation takes place on the 31 December of every year and the payment takes place on 25 January each year.

Specialised banking solutions

Absa is dedicated to bringing you a product offering that is compliant with Shari’ah Law.

Swipe your card worldwide

Cheque debit card which can be used worldwide.

Manage and track your account online

24-hour self-service access through Absa Online, Cellphone banking and Telephone banking.

Absa Online

Get rewarded for simply using your card

Absa Rewards has been approved by the Shari’ah Supervisory Board. You are also responsible for ensuring that the Rewards are used for benefits which are permitted by Shari’ah Law.

See Absa Rewards

Islamic Gold Value Bundle

Recommended income of R4 000

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Islamic Premium Banking

Recommended income of R25 000 or more per month

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Islamic Youth

There are no monthly charges.
The account is for people under 20 years of age.

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Shari'ah-compliant vehicle finance

Islamic vehicle finance will ensure that you get the vehicle you want, whether it is for business or personal use, in a fully Shari'ah-compliant manner.

How does it work

Using the concept of Ijaarah, which is similar to leasing, you can enjoy access to a vehicle for a fixed period and price. This approach is Shari'ah-compliant and allows you to benefit from the unique advantages as well, such as 100% financing and tax benefits.
Benefits of Shari’ah-compliant vehicle finance
Variable and fixed rental fees for the duration of the lease

Flexible payment options that allow you to reduce your monthly rental fee when you have extra cash

At the end of the lease, you can choose to purchase the vehicle at an agreed price, nominate a third party to buy it or continue to use it at a reduced or null rental fee

Access to a range of free services (mechanical and electrical assistance), home and roadside assistance (for breakdowns) and great deals on products and travel services
Shari'ah compliance

Shari'ah Law governs the manner in which Muslim people conduct their lives, including banking. Islamic banking is deduced from the Shari'ah Law; hence it differs from conventional banking and forbids the payment or earning of interest, among other requirements.

As an alternative financial system to conventional banking, each of the solutions within Absa Islamic banking are managed and administered according to Shari’ah Law under the guidance of the Absa Shari’ah Supervisory Board – comprised of learned Muslim scholars.

This independent board specialises in Fiqh Almua’malat (Islamic Commercial Jurisprudence), directing, approving, reviewing, supervising and monitoring the activities of Absa Islamic Banking to ensure Shari'ah compliance.

For more information related to Islamic banking products please visit our homepage.

Travelling abroad

Absa’s a great travel companion! We make it simple to send money abroad and exchange foreign currency. Below are some of our services.

Foreign banknotes

Foreign currency in major world’s currencies.
Pay taxi fares or tips without queuing at Bureau de Change.
Any unused foreign banknotes must be resold to Absa.

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Cash passports

Preloaded with all or any four currencies on a single card.
Valid ID or passport with air-ticket or e-ticket in your name to qualify.

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Forex info

Provide you with foreign exchange for overload travel.
Legally required to cash in foreign exchange upon return to South Africa.
Absa complies with South African exchange control regulations.

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Shari’ah-compliant saving and investing

Every person would like to be financially independent and this aspiration is within reach if you follow basic principles and stick to your plans.

Once you have established your financial goals, you can select a suitable means of achieving them.

Islamic Depositor Plus Account

A Shari’ah compliant deposit account that empowers customers to save money at their discretion whilst having the freedom to transact and have immediate access to funds when necessary.

Start from as little as R100 and earn tiered profit for a balance of up to R25 million.
Apply now if you’re an existing customer.

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Islamic Dynamic Deposit Account

This Shari’ah compliant deposit account is as dynamic as you are. It offers you flexibility to choose your term as well as flexibility to fix a portion and have access to up to 50% portion of your investment on demand. If you don’t access the portion on demand, you earn additional profit share.

Start from as little as a R1000 single deposit, there’s no hidden costs or monthly fees.

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Islamic Term Deposit account

Based on the Mudarabah principle, the Islamic Term Deposit is an investment account, which is fully Shari'ah-compliant.

This Shari'ah-compliant fixed deposit account offers a competitive return that will vary according to the investment period you select (8 days to 5 years) and renders a profit share on a minimum opening deposit of R1 000 with no hidden costs or monthly fees.

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Islamic TargetSave account

A savings account based on the Mudarabah principle.

Starting at a minimum of a R100 pm and fixed for the first six months, our Islamic TargetSave account is a great way to ensure you of annual profit share.

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A Shari’ah-compliant Will

Islamic law requires that the estate of a Muslim should be distributed according to the Islamic Law of Succession, the detail of which can be found in the Qur’aan in chapter four.

It is a religious obligation for all Muslims living in South Africa to have a Will that conforms to Islamic law, as the estate of anyone passing away without a valid Will is handled according to the South African Intestate Succession Laws, which contradict Shari'ah.

Benefits and how to get it

Benefits
Designed according to the principles of the Shari’ah law.

It is valid legal Will in terms of the Intestate Succession Act. This act deals with the distribution of one's estate in terms of the laws of the country in the event there is no Will.

Safe custody for your convenience.

*Terms and conditions apply
Qualifying criteria
Qualifying criteria

To be single.

Be married out of community of property without accrual.

Be married according to Islamic law.
What it costs
What it costs

The cost of drawing up an Islamic Will is R342.

Executor’s fees: 3.5% + VAT of the gross asset value.

If the client chooses the safe custody option where Absa Trust will keep the Will in safe custody for an annual fee of R60 then the client is entitled to a 15% discount of the executor’s fees.

If the client is 60 years old and above, with assets to the value of R300 000 or more, the services are free.