Qatar- Barwa Bank launches Shariah-compliant credit card 

(MENAFN - The Peninsula) Barwa Bank has come out with credit card that offers cash withdrawal facilities of up to 100 percent of the total assigned credit limit, said a senior official of the bank at a press conference yesterday.

Qatar's fastest growing Islamic bank, announced the launch of the Shariah-compliant credit card that also enables customers to earn Loyalty Points that can then be converted to Qatar Airways Privilege Club Qmiles - reward miles as part of the airline's passenger loyalty programme.

Hussain Al Abdullah, Head of Retail at Barwa Bank said: "We're extremely proud to launch the first Shariah-compliant Credit Card in Qatar that enables customers to earn Barwa Bank Loyalty points that can be converted to Qmiles. This added value comes with all the advantages of today's credit cards, while remaining true to the values of Islamic banking."

Beneficiaries can use Qmiles to avail award tickets with Qatar Airways to fly to more than 100 destinations worldwide. One Barwa Bank loyalty point is equivalent to one Qatar Airways Privilege Club Qmile.

According to the bank, the credit card has been carefully developed with Islamic financial expertise, to ensure that the product is within the guidelines of Islamic finance, and is 100 percent Shariah-compliant.

Asked to explain the contradictory terms like 'credit card' and '100 percent Sharia Compliant', Asif Iqbal, Manager Product Development and Propositions at Barwa Bank, said: " It is a blend of two structures. First being 'Qard al Hasana', and second is based on 'Ujrah'. Under Ujrah, we provide financial assistance to customers by offering payment guarantee to merchants on behalf of the beneficiaries. For this, we have a right to charge our customers, but in certain case we waive it off also. And this is approved by the Shariah Board.

Asked, how this credit card is different from others, Iqbal, said: Yes, there are other Islamic banks in the country that also provide credit card services. But there is a huge difference in their propositions. Our product is not based on 'charged-card proposition'; it is based on credit card proposition."

Charged-card is something with that the holder of the card spends and settles his full liabilities at the end of the month. Where as in the credit card one gets the liberty to revolve and pay. Customers can choose to pay either the full monthly balance every month or can opt for just a minimum payment as low as 3 percent.

While commenting on the question if there is any annual fee charged for the card, he said: "As of now there is no charge for the first year, and similar is the plan for the years to come. Any change in plans will be communicated to the card holders three months in advance."

The credit card is available in two variants, Platinum and Gold. Platinum member customers receive a bonus of 5,000 Loyalty Points that can be converted to 5,000 Qmiles. It has no joining or annual fee up to two free supplementary cards, cash withdrawal up to 100 percent of the total assigned credit limit, travel protection, free SMS alert service and many other benefits.