Al Islami Salam Finance

At Dubai Islamic Bank (DIB), the global leader in Islamic Banking, we are always developing innovative Sharia compliant financial solutions to help our customers. Our latest offering, Al Islami Salam Finance, allows you access to cash.

This product is based on the Islamic financing structure of Salam, which is a sale contract whereby the purchaser (DIB) pays the price in advance, and the seller (customer) delivers goods with certain specifications and certain quantity on agreed future dates.

Product Features:

  • Upfront cash payment to the customer
  • Low salary requirement
  • Simple documentation
  • Quick processing
UAE Nationals Expatriates
Maximum finance amount (AED) 250,000 250,000
Maximum tenure 120 months 72 months
Minimum salary requirement (AED) 3000 4000

You can apply for Al Islami Salam Finance if:

  • Your salary is being transferred to DIB and you are working for a DIB approved company
  • Your salary is being transferred to another bank, but you are working for a DIB approved company
  • You are self employed ( UAE Nationals only)

Salam Frequently Asked Questions:

  1. What is Salam?

    2. Salam is a sale contract whereby the purchaser pays the price in advance, and the seller delivers the goods with certain specifications and certain quantity on agreed future date(s).
  2. How is Salam Sharia complaint?

    3. Salam has been allowed by all Sharia scholars in the past and present, provided it meets the conditions set by Sharia.
  3. Is there an approved Sharia Fatwa?

    4. Salam structure has been presented to and approved by United Sharia Committee of UAE Islamic financial institutions.
  4. Is there any Hadith supporting Salam?

    5. There are many Hadiths supporting Salam, including the following: It was Narrated through Son of Abbas that when Allah's Apostle came to Medina and the people used to pay in advance the price of fruits to be delivered within one or two years. The Prophet said, "Whoever pays money in advance for dates (to be delivered later) should pay it for known specified weight and measure (of the dates)”. (Bukhari and Muslim)
  5. Is there actual commodity buying & selling?

    6. Yes, there is actual buying and selling of a real commodity.
  6. Since commodity prices fluctuate over time, how can DIB justify fixing the price over long tenures?

    7. Salam is being practiced for 14 centuries and Muslims all over the world have been entering into Salam contracts and are aware of market fluctuations. This means that by studying the market, one can predict the future prices. This is not strange as ‘futures’ are being used in conventional banking with both the considerations deferred. But Sharia allows only the delivery of goods to be deferred in case of Salam with the price paid upfront.
  7. How will the commodities be delivered to DIB?

    8. Based upon your request, one of the suppliers will issue a Master Sale Undertaking to you and once you purchase the commodity from the supplier and take its possession, you (or the Agent acting on your behalf) will send a notice to the Supplier to deliver the commodity to DIB (by way of debiting and crediting the commodity accounts).
  8. Who is the Supplier in case of Al Islami Salam Finance?

    9. The supplier, in case of Al Islami Salam Finance, is Al Khaleej Sugar Company and their principal business activity is processing of refined cane, raw molasses and syrup sugar.
  9. What is the commodity that I will be required to sell to DIB?

    10. The commodity required to be sold by you, to DIB, is Sugar.
  10. Will I pay the Supplier any fee or charge in addition to the Purchase Price?

    11. You will not be required to pay any fee or charges in addition to the Purchase price.
  11. Why should I open a Current Account with DIB?

    12. This is being done to facilitate the payment of your Purchase Price under the Master Sale Undertaking. Please note that the Supplier also maintains an account with DIB; this saves you from making the physical efforts of transferring funds into the Supplier’s Bank Account or making a cash payment. Upon receiving the monthly Purchase Price in your DIB account, on the basis of your standing instructions, DIB transfers the funds into the Supplier’s Account with DIB.
  12. What happens if I miss my payment to the Supplier?

    13. In the event of missing the payment to the Supplier, you will not be able to purchase the Sugar from the Supplier, which is required to be delivered to DIB in accordance with your legal commitment under the Salam Contract; hence you will be in default.
  13. Is there a profit that I am paying to DIB in Al Islami Salam Finance?

    14. In Al Islami Salam Finance, DIB will pay you the purchase price in advance and you will be required to deliver only the commodity on agreed future dates.
  14. How does the bank earn profit in Al Islami Salam Finance?

    15. Upon receiving delivery of the required quantity at the agreed delivery dates from you, DIB may earn profit on the same post selling it in the market.



To apply for Al Islami Salam finance, call +971 4 609222