Treasury

Asset/Liability Management

Liquidity is deployed in Shari’a compliant products with an aim to maximize profitability. The net liquidity available with Abu Dhabi Islamic Bank Branches / Business Units is transferred to Treasury on daily basis and will be applied profitably in the interbank market via Shari’a compliant products as per internal guidelines in conjunction with market sentiments.

The Treasury Department utilizes state of the art technology provide a range of products to enable clients to fully manage any financial market risk and currency risk.

Major changes in the dynamics of the worlds and geopolitical changes in the globe, main economies have resulted with some unprecedented movements of financial market on both a global and regional basis, this can provide both problems and opportunities to corporate entities.

Corporate Deposits

Abu Dhabi Islamic Bank’s Treasury Department offers competitive profit rates to valued Corporate Clients. This is part of our ongoing strategy to be a leading Islamic Financial Institution providing them best rate of return on their investments within the available Shari’a complaint products and services.

MM Products

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International Murbahah: To apply the liquidity in the inter bank market.
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Reverse Murabahah: To raise funds in the inter bank market.
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Wakala Investment: To transact between Islamic Banks.
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Profit Rate SWAP: Tool to manage profit rate risk.

Foreign Exchange

Foreign exchange markets remain volatile and risks to corporate entities are as high as ever. Abu Dhabi Islamic Bank’s Treasury Department is focused to cater to the foreign exchange requirements of our customers. The Department endeavors to obtain the most competitive rates in the market. Un-hedged exposures in the currency markets can make firms products uncompetitive, and on occasion FX losses may even exceed trading profits.

Spot FX

Foreign Exchange is the mechanism of converting one unit/s of a currency into another currency. Foreign exchange transactions are executed either between banks or bank and customer. A foreign exchange transaction, which is executed with an exchange rate prevailing on the date of transaction, is called a Spot Foreign Exchange transaction. The conversion of the currency or delivery of the contract will take place immediately or 2 working days after the date of the transaction (3rd day). The rate applied to such transaction is known as spot rate.

Forward Foreign Exchange

A Forward Foreign Exchange transaction is a predetermined contract in which the conversion of the currency or delivery will take place at a future specified date with a predetermined exchange rate.

A proactive hedging strategy will then be recommended to the customer using market product such as Promise to Purchase Foreign Currencies which will facilitate Abu Dhabi Islamic Bank’s Treasury to cater the future Foreign Currency requirements and to protect against the future the by protecting the Foreign currency exposure risk.