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Albilad Account "Ithmar"
The first of its kind!
Albilad Account "Ithmar" is an investment Tadawul account in Saudi Riyals. However, it offers profits based on the available amounts in investors' accounts. The account employs the Sharia concept of "Mudarabah". Under this concept the customer acts as the "owner of fund" and the bank acts as the "Mudareb". The bank undertakes the responsibility of investing the customer's money in a variety of Sharia-based businesses.
Features
- Sharia based account, approved by the bank's Sharia Committee.
- The account employs the Sharia concept of "Mudarabah". This implies that the customer shares profits and losses with the bank.
- Profits are computed as at the end of each Gregorian month. The expected revenue for each account shall coincide with that of the bank's treasury.
- Statements of account are sent on a monthly basis to the given mail address of the customer.
- Prompt completion of accounts opening procedures at any branch.
Conditions for profit distribution in Albilad Account
- At hand balance must not be below SR 20,000 in any single day in a month (if the balance goes below SR 20,000 even for one day, the customer shall not receive profits for that month).
- Profits for a given month shall be distributed on the basis of the lowest balance for that month, provided that it does not fall below SR 20,000.
- The balance must be deposited at the beginning of the month to qualify for receiving profit.
- The profit distribution ration is 80% for the bank and 20% for the customer.
- Profit distribution is based on the balance of the investment account and not on the value of the portfolio
Differences between investment accounts and Albilad Account "Ithmar"
| Features |
Investment account |
"Ithmar" account |
| Product features |
Investment account without revenue |
Investment account with profit
sharing |
| Minimum |
N/A |
SR 20,000 to qualify for month
profits |
| Profit ratio |
N/A |
80% bank; 20% customer |
| Profit distribution |
N/A |
Monthly |
Simple Requirement
- A visit to the nearest Bank Albilad branch
- A valid current account with Bank Albilad
- The customer is not below 18 years of age
Required documents
- Completing and signing "Albilad Account "Ithmar" agreement"
- Valid ID (national ID card or Family Book for Saudis; Iqama and passport for non-Saudis)
For more information, please call: 800 123 0000
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Ithmar Account