The Bank, as Mudarib, shall be entitled to an agreed percentage of the net profit of the depositors. The Bank shall, in its capacity as Mudarib, be entitled to receive up to 90% of the net profit, effective from July 2020. In case of any loss, the depositor, Rab Al Mal, shall bear a loss pro-rated against its share in the Mudaraba, except in cases of misconduct, negligence or breach of contract on the part of Mudarib in which case the Mudarib shall bear the loss.
Understanding the role of weightages
Weightages are used in Mudaraba contracts to calculate the distribution of profits between investors and managers. These weightages are determined based on various factors such as the size of the investment, the length of the investment period, profit payment frequency and the level of risk involved. Below are the weightages for different accounts effective July 2020.
Transactional Accounts
Term Investment Deposits
Description
Weightage
Description
Weightage
Jood Savings Account
6.00%
Savings Account
AED > 0
8.00%
1 Month - AED >= 25K < 100K
4.00%
USD > 0
5.00%
1 Month - AED >= 100K < 500K
5.00%
EUR > 0*
0.00%
1 Month - AED >= 500K < 1 Million
6.00%
GBP > 0
4.00%
1 Month - AED >= 1 Million < 5 Million
7.50%
Call Deposit Account
1 Month - AED >= 5 Million and above
8.00%
AED > 0
6.00%
1 Month - AED >= 20 Million and above
10.00%
USD > 0
5.00%
3 Months - AED >= 25K < 100K
15.00%
EUR > 0*
0.00%
3 Months - AED >= 100K < 500K
9.00%
GBP > 0*
0.00%
3 Months - AED >= 500K < 1 Million
10.00%
Profit Paying Account - RAKSelect
0 to 9,999"}">0 to 9,999
0.00%
3 Months - AED >= 1 Million < 5 Million
12.00%
10,000 to 49,999*"}">10,000 to 49,999*
0.00%
3 Months - AED >= 5 Million < 20 Million
13.00%
50,000 to 99,999*"}">50,000 to 99,999*
0.00%
3 Months - AED >= 20 Million and above
15.00%
100,000 to 249,999*"}">100,000 to 249,999*
0.00%
6 Months - AED >= 25K < 100K
11.00%
250,000 to 499,999*"}">250,000 to 499,999*
0.00%
6 Months - AED >= 100K < 500K
14.00%
500,000 to 999,999*"}">500,000 to 999,999*
0.00%
6 Months - AED >= 500K < 1 Million
16.00%
1,000,000 to 4,999,999*"}">1,000,000 to 4,999,999*
0.00%
6 Months - AED >= 1 Million < 5 Million
17.00%
5,000,000 to 9,999,999*"}">5,000,000 to 9,999,999*
0.00%
6 Months - AED >= 5 Million < 20 Million
20.00%
10,000,000 to 24,999,999*"}">10,000,000 to 24,999,999*
0.00%
6 Months - AED >= 20 Million and above
21.00%
25,000,000 to 99,999,999"}">25,000,000 to 99,999,999
20.00%
12 Months - AED >= 25K < 100K
12.00%
Business Finance Account
12 Months - AED >= 100K < 500K
15.00%
0 to 19,999*"}">0 to 19,999*
0.00%
12 Months - AED >= 500K < 1 Million
18.00%
20,000 to 49,999*"}">20,000 to 49,999*
0.00%
12 Months - AED >= 1 Million < 5 Million
18.00%
50,000 to 99,999*"}">50,000 to 99,999*
0.00%
12 Months - AED >= 5 Million < 20 Million
38.00%
100,000 to 249,999*"}">100,000 to 249,999*
0.00%
12 Months - AED >= 20 Million and above
50.00%
250,000 to 499,999*"}">250,000 to 499,999*
0.00%
1 Month - USD >= 25K < 100K*
0.00%
500,000 to 999,999*"}">500,000 to 999,999*
0.00%
1 Month - USD >= 100K < 500K
3.00%
1 Million upto 5 Million"}">1 Million up to 5 Million
8.00%
1 Month - USD >= 500K < 1Million
4.00%
5 Million upto 10 Million"}">5 Million up to 10 Million
12.00%
1 Month - USD >= 1 Million < 5 Million
6.00%
10 Million and 25 Million"}">10 Million and 25 Million
12.00%
1 Month - USD >= 5 Million and above
6.00%
25 Million and above"}">25 Million and above
14.00%
1 Month - USD >= 20 Million and above
8.00%
USD 0 to 19,999*
0.00%
3 Months - USD >= 25K < 100K*
0.00%
USD 20,000 to 49,999*
0.00%
3 Months - USD >= 100K < 500K
7.00%
USD 50,000 to 99,999*
0.00%
3 Months - USD >= 500K < 1 Million
8.00%
USD 100,000 to 249,999*
0.00%
3 Months - USD >= 1 Million < 5 Million
10.00%
USD 250,000 to 499,999*
0.00%
3 Months - USD >= 5 Million < 20 Million
11.00%
USD 500,000 to 999,999
7.00%
3 Months - USD >= 20 Million and above
13.00%
USD 1 Million up to 5 Million
7.00%
6 Months - USD >= 25K < 100K*
0.00%
USD 5 Million and above
8.00%
6 Months - USD >= 100K < 500K
12.00%
Advantage Account
6 Months - USD >= 500K < 1 Million
14.00%
0 to 9,999*"}">0 to 9,999*
0.00%
6 Months - USD >= 1 Million < 5 Million
15.00%
10,000 to 49,999*"}">10,000 to 49,999*
0.00%
6 Months - USD >= 5 Million < 20 Million
18.00%
50,000 to 99,999"}">50,000 to 99,999
6.00%
6 Months - USD >= 20 Million and above
19.00%
100,000 to 249,999"}">100,000 to 249,999
8.00%
12 Months - USD >= 25K < 100K
10.50%
250,000 to 499,999"}">250,000 to 499,999
10.00%
12 Months - USD >= 100K < 500K
13.00%
500,000 to 999,999"}">500,000 to 999,999
12.00%
12 Months - USD >= 500K < 1 Million
16.00%
1 Million upto 5 Million"}">1 Million up to 5 Million
14.00%
12 Months - USD >= 1 Million < 5 Million
16.00%
5 Million upto 10 Million"}">5 Million up to 10 Million
14.00%
12 Months - USD >= 5 Million < 20 Million
21.00%
10 Million upto 25 Million"}">10 Million up to 25 Million
16.00%
12 Months - USD >= 20 Million and above
26.00%
25 Million and above"}">25 Million and above
18.00%
USD 0 to 9,999*
0.00%
USD 10,000 to 49,999*
0.00%
USD 50,000 to 99,999*
0.00%
USD 100,000 to 249,999*
0.00%
USD 250,000 to 499,999*
0.00%
USD 500,000 to 999,999
9.00%
USD 1 Million and above
11.00%
*For the purpose of Mudarib, the available balances in these accounts shall not be invested in Mudaraba and therefore will not be part of profit distribution.
Foreign currency Mudaraba accounts will be converted to AED for the purpose of profit calculation according to prevailing exchange rate of the bank in the same day before being invested in the joint Mudaraba pool. Similarly, the prevailing exchange rate shall be considered while crediting the profit amount in foreign currency.
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