This archive report was first published on 2 July 2019.
On July 2, 2019, Gulf African Bank (GAB) made history by launching the region's first interest-free credit card, fully compliant with Islamic principles of financing.
The GAB Awwal credit card allows customers to purchase halal goods and services, with a credit limit adjustable up to Sh2 million.
According to GAB Managing Director Abdalla Abdulkhalik, the card is part of the bank's commitment to provide 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," said Mr. Abdulkhalik.
The card can be used worldwide at all Visa-accepted ATMs, points of sale, and online shopping platforms.
Shariah Supervisory Board Member Prof. Mohammed Badamana explained that a fixed fee will be charged for various services, including account maintenance, card usage, and benefits like discounts with partner institutions.
Unlike conventional cards, the fee structure is based on a fixed fee, with the bank's discretion to reduce it.
Prof. Badamana also stated that the bank will conduct ethical screening of institutions and block purchases of goods like alcohol and betting services.
Furthermore, Gulf Bank will donate late fees, which will be levied against customers who fail to pay a minimum amount by the due date.
