Abu Dhabi, UAE–Abu Dhabi Islamic Bank (ADIB) has launched a new product called ‘Istikrar’, the UAE’s first long-term, fixed-rate home finance.
It offers customers a consistent, fixed monthly installment throughout the chosen tenor rate, eliminating any variations or fluctuations.
The new offering provides customers with more property financing options amid a high-rate environment. Fixed-term schemes offer stability and predictability for customers when managing their budgets.
Amit Malhotra, global head of retail banking at ADIB, said, “Istikrar is an important milestone not just for ADIB, but for the UAE as a whole. Given the uncertain rate environment, we observed an increasing demand from our customers for a fixed-rate home finance option. Istikrar has been introduced to help in their financial planning and optimize their household budget. Our aim is to continue leveraging customer insights to introduce new offerings that support our customers’ goals of home ownership.”
The fixed-rate tenor offered by the bank guarantees homebuyers from any large final payment or unexpected changes in installments.
Abu Dhabi Islamic Bank (ADIB) announced a net profit of US$985 million (AED 3.62 billion) in 2022, a 55 percent increase from the previous year.
The bank also reported a 60 percent growth in Q4 2022 with a net profit of US$326 million (AED 1.2 billion), compared to US$198 million (AED 728 million) in Q4 2021.
ADIB’s revenue increased by 23 percent to $1.8 billion in 2022, driven by a 43 percent increase in fees and commissions and a 24 percent growth in funded income.