Savers will be able to deposit funds with the Bank of Ireland for five years in the Alburaq savings plan which follows the Islamic principles of Wakala.
At maturity savers will receive their initial capital back together with 100 per cent of any gain in the performance of a basket of 20 shares in global companies selected from the Dow Jones Islamic Titans 100 Index. The minimum opening deposit is £500.
Alburaq head Keith Leach says this is the first Shariah-compliant capital-protected product in the UK retail market. He says: “Over the past few years, the UK has seen an increase in the availability of Islamic home finance products but there are very few options for Muslims wanting to save money in accordance with their religious beliefs.”
Bank of Ireland UK Financial Services chief executive Des Crowley says: “Bank of Ireland is delighted to be involved with Alburaq in bringing to market the Alburaq Savings Plan. This is a highly innovative product, the first of its kind and directly addresses the saving needs of the Muslim community. We have been working with Alburaq for four years providing Islamic home finance and this news should be seen as the next stage in our development of Shariah-compliant products.”