This archive report was first published on 2 July 2019.
On July 2, 2019, Gulf African Bank made history by launching the region's first interest-free credit card, designed to adhere fully to Islamic principles of financing.
The GAB Awwal credit card is a game-changer in the financial industry, allowing customers to make purchases of halal goods and services while enjoying the flexibility of adjusting their credit limit up to Sh2 million.
According to Abadalla Abdulkhalik, the managing director of GAB, the card is part of the bank's commitment to providing innovative products that cater to the special needs of customers with competitive advantages.
"This card bears numerous unique features, such as no interest, fair pricing, no compounded fees, and safety measure protection for users using 3D security features," Mr. Abdulkhalik explained.
The card can be used worldwide at all Visa-accepted ATMs, points of sale, and online shopping platforms, providing customers with unparalleled convenience and flexibility.
Prof. Mohammed Badamana, a member of GAB's Shariah Supervisory Board, emphasized that the card's fee structure is based on a fixed fee, which can be reduced by the bank at its discretion. This is in contrast to conventional cards, which charge a percentage of the outstanding balance.
"The entire fee structure is based on a fixed fee with the bank's discretion to reduce the fee unlike the conventional cards where the fee is a percentage of the outstanding amount," Prof. Badamana said.
Furthermore, the bank will conduct ethical screening of various institutions and block the purchase of goods such as alcohol and betting services. In the event of late payment, the bank will donate the late fees to the GAB Foundation, which supports various social empowerment initiatives.
