Abu Dhabi’s Abu Dhabi Islamic Bank (ADIB) launches Khuttati, a savings plan to encourage medium- to long-term investments.
Khuttati means “my plan” in Arabic. The product allows savers to put aside a fixed contribution amount every month into a savings plan.
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This provides exposure to a wide choice of Sharia’a-compliant mutual funds investing across different asset classes and currencies.
Moreover, it offers affordable instalments of AED 1,000 , which can be altered on request. And the bank says that there are no charges levied on withdrawals.
ADIB launches Khuttati: only 9% invest in mutual funds in UAE
According to ADIB, around 51% of UAE residents save regularly but only 9% invest in mutual funds.
Some 46% keep their savings in cash or deposits. Among other savers, 28% invest in their own businesses, 24% save to buy real estate and 24% invest in publicly traded shares.
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By GlobalDataThe three most popular reasons for saving are for emergencies (58%), home ownership (44%) and children’s education (41%). In addition, 40% save for retirement and 36% save for holidays.
“It makes sense for savers to diversify across asset classes through a variety of funds with different risk-reward characteristics,” says Saif Alkeem, Head of Wealth Management & Priority Banking at ADIB.
“The Khuttati savings plan is very well structured. It allows customers to put aside some money every month with the aim of taking advantage of international markets. The maturity of the investments is also set in line with the client’s needs. and withdrawing funds is also easy. Crucially, the product is tailored to meet the varying risk appetites of clients.”
ADIB has more assets in excess of AED125bn, It serves over 1 million customers via a branch network of 80 outlets in the UAE. The bank also has a presence in six international markets including Egypt where it has 70 branches. It also has a presence in the UK, Saudi Arabia, the UK, Sudan and Iraq.
