Did you read the report on business banking published last year? Although the COVID-19 has damaged a lot to the business world there is hope that the system will be revived. According to banking professionals and experts in UAE, the choice of a bank account for a business depends on your actual requirements. For example, Islamic banking and conventional banking both are aggressive platforms where you only survive with smart work. Bot system is penetrating highly into the finance segment and you cannot even imagine taking an initiate without using the banking in UAE.
Which one is more powerful is a big question asked by frequent reviewers and account holders working in Dubai. The difference is quite clear as Islamic banking has been dominating the auto financing world for a long time due to an interest-free and tax-free system. You can cover the pre-history of this field and I am sure you are well-aware. The market shares are ever-increasing due to the involvement of international traders and investors. With an immediate effect, the shares have increased with a big difference.
Looking at the other side of the picture, an account holder can get the best investment option using the conventional route. Take some good interest rate, the profit rate, and maximum output by showing a good credit score. Due to the maximum profit margin, therefore the majority of people would love to engage with the investment plans and personal finance services using the traditional route. If I would say that Islamic banking can give you the same proposition for such services with zero interest rate, then it would be hard to accept. Similarly, if we have a look at charges, Islamic business loan will charge you less than conventional banking over delayed payments.
No hidden charges and extra taxes while using Islamic business planning using the second banking route. This is a big difference that Islamic banking is working with no additional charges whereas, conventional banks cannot work with such charges. You must have to cover the punitive interest rates in case you are unable to make you pending on time.
Will you go for an Islamic investment option of an Islamic saving option?
• Keep one thing in mind that like conventional banking one can enjoy different areas like stock exchange gold trading and forex trading to make investments. Therefore, the second banking route is also pretty cool because it does not work based on interest to generate income. Do you have any idea about the actual difference? Using investment options one can work based on profit/loss margin with a little risk.
• Another option is available in the form of an Islamic savings account where you can save a lot through your fixed deposit. You need to work according to permitted trading agreements. This profit can be articulated and compare with any other banking channel. So you can count your profit in percentages or earnings with zero tax rates.