July 07, 2006
How Islamic credit works
From Adventures In Dubai, a practical example of modern Islamic finance:
ME: yes, who is this?
DIB: 'ulloo, Mr Keefieboy?
ME: yes, who is this and what can I do for you?
DIB: this is Dubai Islamic Bank, do you have two minutes?
ME: are you trying to sell me a credit card?
DIB: yes sir, the world's first Islamic credit card!
ME (on the floor laughing): you jest, surely!
ME: well credit cards are the highest form of riba (usury) after loan sharks are they not?
ME: go on then, tell me, but I'm not buying
DIB: there is no interest on the outstanding balance, only a monthly fee...
ME: how much is the monthly fee?
ME: great! So if I have an outstanding balance of Dhs20,000, I only pay Dhs15 per month?
DIB: ah, no, it would be quite a bit more.
ME: so what you're saying is the monthly fee is a bit like interest, but you just call it by a different name?
DIB: yes sir
ME: that makes me feel so much better. Thank you and goodbye
Posted by secretdubai at July 7, 2006 06:04 PM
Filed Under: Gulf
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hah. The power of optics.
The appearance of propriety and compliance. It helps the guilty mind.
Posted by: The Lounsbury at July 7, 2006 09:22 PM
i love it!
where can I sign up?