Question

Make a comparative analysis between the following two set of Islamic bank financial statements: Dubai Islamic Bank, United Arab Emirates, and Sharjah Islamic Bank, United Arab Emirates 1. Find or google two different Islamic bank from two different countries. 2. Get the newest year available. 3. Not limited to UAE only. 4. Find if they prepared the: i. Statement of Restricted Investments ii: Zakat and charity fund statement. iii. Qard (loan) fund statement. iv. Roles of the sharia advisor. v. Responsibility to pay zakat. vi. How much is zakat paid and the method to compute zakat?

Answer 1

DUBAI ISLAMIC BANK:-

(i) Schedule 9 , Islamic financing & investing assets which includes the Musharakas, Mudarabas & Wakalas"=

Amount in AED'000

Total Islamic Financing Assets- 124,682,643

Total Islamic Investing Assets- 32,311,468

Hence , Total Islamic financing & investing assets= 156,994,111

(ii) Zakat Payable calculation statement is created in the note 23

(iii)No Specific Qard fund statement

(iv) The Internal Sharia's Committee is responsible for mters relating to Zakat , Sukuk, Forfieted Income, Depositor's share of profit calculation, Classification of investments as FVTOCI, etc and Islamic Swaps.

(v) The repornsibility to pay Zakat is of Bank on behalf of shareholders' ( as specified in Articles of

Association & Memorandum of Association) and is approved by the Bank Internal Sharia's Suprvisory Comittee

The remaing balance if any is paid by shareholders.

The amount to be borne by Bank on behalf of shareholders' is as under:-

 The portion of Zakat payable by the Bank on its shareholders’ behalf is calculated on ‘statutory reserve’, ‘general reserve’, ‘retained earnings’, ‘other comprehensive income’, exchange translation reserve’ and ‘provision for employees’ end of service benefits’;

 Zakat paid by investee companies directly are adjusted in shareholders Zakat, if the Bank only accounts for net profit after Zakat of investee;

 Zakat on depositors’ investment risk reserve is calculated and deducted from the investment risk reserve balance held with the bank and added to the Zakat payable balance; and

 Zakat is disbursed by a committee appointed by the Board of Directors and operating as per the terms set by the Board of Directors.

(vi) Zakat for shareholders is computed based on “Net Invested Funds Method” which is in accordance with the advice of the Internal Sharia’a Supervisory Committee

Total Zakat Payable for the year is 326895 AED.

SHARJAH ISLAMIC BANK

(i) Schedule 7 , Islamic financing & investing assets which includes the Musharakas, Mudarabas & Wakalas"=

Amount in AED'000

Hence , Total Islamic financing & investing assets= 25,142,892

(ii) No Zakat & charity fund statement

(iii) No qard statement

(iv)Role of Sharia advisor not specified

(v) Responsibility ot py zakat not defined

(vi) The total Zakat payable is 62435 computation is not mentioned.