Abu Dhabi Islamic Bank – Egypt (ADIB Egypt) and Faisal Islamic Bank of Egypt both offer Sharia-compliant 3-year savings products with quarterly profit payouts. The comparison below sets out the key details of ADIB's 3-year retail sukuk with a quarterly payout and Faisal Islamic Bank's 3-year savings certificate with a floating quarterly profit rate, along with the return on an amount of EGP 500,000.

The comparison

Product type3-year retail sukuk3-year savings certificate
Tenor3 years3 years
Profit rate13.4% a year4.3% a year
Payout frequencyQuarterlyQuarterly
Minimum purchaseEGP 1,000EGP 1,000 and multiples
Early redemptionAfter 6 months, per the redemption scheduleAfter 6 months, per the redemption rules

Features of ADIB's 3-year retail sukuk

  • The sukuk complies with the principles and provisions of Islamic Sharia.

  • The expected profit rate is 13.4% a year, paid quarterly.

  • The minimum to open the sukuk is EGP 1,000.

  • A Murabaha facility secured by the sukuk is available for up to 95% of the sukuk value.

  • Profits can be withdrawn from ATMs 24 hours a day.

  • The sukuk value can be redeemed after 6 months, according to the early redemption schedule.

Features of Faisal Islamic Bank's 3-year savings certificate

  • The certificate has a 3-year tenor and is renewed automatically at maturity unless the customer requests non-renewal in writing.

  • The certificate is issued in denominations of EGP 1,000 and multiples.

  • Profit starts accruing from the first day of the calendar month following the purchase.

  • A floating quarterly profit rate, calculated on actual business results in accordance with Islamic Sharia.

  • Available to Egyptians and other nationalities with no maximum, and can be bought in the names of minors.

  • The certificate value can be redeemed at least 6 months after the purchase date, according to the bank's redemption rules.

  • The profit on each certificate is credited automatically to the customer's account.

  • Certificate holders get a chance to perform Umrah through a draw held by the bank twice a year, subject to the announced terms.

Which product pays a higher quarterly return?

The comparison shows that ADIB Egypt's 3-year retail sukuk offers a higher expected profit rate at currently announced rates, at 13.4% a year, against 4.3% a year for Faisal Islamic Bank's 3-year savings certificate.

On an investment of EGP 500,000, the approximate quarterly return at the announced rates is about EGP 16,750 at Abu Dhabi Islamic Bank, against about EGP 5,375 at Faisal Islamic Bank.

On a simple calculation, total annual return is therefore about EGP 67,000 at Abu Dhabi Islamic Bank, against EGP 21,500 at Faisal Islamic Bank, a difference of about EGP 45,500 a year.

Assuming profit rates stay unchanged over the full 3 years, the total return calculated this way reaches about EGP 201,000 at Abu Dhabi Islamic Bank, against EGP 64,500 at Faisal Islamic Bank.

Note: the above calculations are estimates and do not guarantee that the return will remain fixed over the product's term.