The Islamic Bank of the United Arab Emirates has for the first time banned the use of credit and debit cards in shops selling shisha and vapes, in order to meet religious law requirements.
UAE Islamic Bank’s new rule:
According to a report by Emaralyoum on October 14, a bank issuing credit cards permitted under Islamic education law banned the use of its credit and debit cards in shops selling “shisha” and vapes for the first time. Customers with this card confirmed that all of these stores no longer accept card payments and any attempts to use these cards in these locations will be rejected.
Amjad Nasser, a financial expert, points to the characteristics of Islamic banks that distinguish sales shops based on specific codes, consisting of Visa and MasterCard codes, which are classified as non-Sharia-compliant business activities in order to meet legal requirements. Therefore, in these places, deposit cards from Islamic banks cannot be used for direct debits or credit payments.
He added that the debit card system of Islamic banks had been “programmed” to deny transactions from such shops. This provision is set out in all types of Islamic bank card terms and conditions.
No cards allowed in hookah and vape stores
Nasser went on to explain that sometimes transactions may be made on these cards, but when audited, both religious institutions and the central bank check the transaction details. If a transaction is found in violation of the regulations. Banks will be required to stop such illegal transactions and strictly enforce the established operating system.
He also mentioned that all Islamic banks are expected to implement this policy in the country. While some religious institutions in other countries consider credit cards to be the “private property” of the cardholder, allowing the cardholder to freely control and bear the consequences, in the UAE, religious institutions have reached an agreement not to allow the use of cards issued by Islamic banks to purchase products that do not comply with education laws.
According to an article by the Chinese Embassy in Indonesia. Islamic banks are different from traditional commercial banks in terms of daily management, interest payments, business areas, risk control, and relations with borrowers. Over the past 10 years. The global Islamic banking industry has grown at an average annual rate of more than 10%, reaching a total turnover of $700 billion to $100 million, becoming a significant part of global assets. More than 300 institutions from 75 countries around the world are involved in the development of the industry.
