Diversification of Islamic Financial Instruments
16
Different Deposit Products Trade Finance and Treasury products in Middle East North
Africa Malaysia and Indonesia
Table 7: Deposits
Product/Process Middle East North Africa Malaysia Indonesia
Savings Account
Based on : Wadiah
Mudarabah, Qard
Mudharabah
and Qard are
standard
offerings
Mudharabah
and Qard are
standard
offerings
Wadiah is more
popular than
Mudharabah
Mudharabah
is most
popular,
followed by
Wadiah
Current Account
based on: Wadiah
Mudharabah Qard
Qard and
Mudharabah
are standard
offerings
Qard and
Mudharabah
are standard
offerings
Only Wadiah is
offered to
customers
Only Wadiah
is offered to
customers
Fixed Deposit based
on: Mudharabah,
Commodity
Murabahah Wakala
All three are
popular
products,
especially
within GCC
countries
All three are
popular
products
Mudharabah is the
standard offering.
Commodity
Murabahah and
Wakala are
gradually
becoming more
popular
Only
Mudharabah
is being
offered to
customers
Recurring
Deposits/Saving Plan
to increase deposits
Popular scheme
offered to
customers as a
“forced saving
plan”
Popular scheme Slow take-up as
Takaful unit-linked
plan is more
attractive to
customers
Popular
scheme to
encourage
saving for Hajj
and Education
Structured Products Products are
offered to
selected
customers
Products are
offered to
selected
customers
Products are
offered to selected
customers
Not offered to
public yet
Profit Distribution Adopt guideline
issued by
AAOIFI on
Mudharabah-
based products
Adopt guideline
issued by
AAOIFI on
Mudharabah-
based products
Adopt guideline
issued by AAOIFI
but more refined
and complex
Revenue-
based
(instead of
profit based)
but less
complex
Liquidity
Management
Standard
offering when
banks promote
their cash
management
services to
commercial and
corporate
customers
Emerging
requirements
Same as ME and
Africa
Emerging
requirements
in Indonesian
market
Fund Management
(Allowing banks to
create multiple funds
or pools meant for
Very popular
arrangement
wherein
customers can
Popular
arrangement
wherein
customers can
Low demand from
customers.
However, non-
bank financial
Emerging
requirements
but take up
from