Abu Dhabi – Mubasher: Abu Dhabi Islamic Bank (ADIB), listed on the Abu Dhabi Securities Exchange (ADX), has launched “Khuttati”, its latest savings plan to promote medium- to long-term investments through regular contributions.
Khuttati enables savers to hold a fixed contribution amount into a savings plan each month, offering a wide range of Sharia’a-compliant mutual funds investing across different asset classes and currencies, according to a press release.
The new plan provides customers with “a high degree of flexibility on the saving timeframe and level of contribution with an affordable instalment of AED 1000, which can be easily altered on request, while no charges are enforced on withdrawals,” ADIB said.
ADIB will offer Khuttati through its network of branches and customers can find all related information available on the bank’s website, adib.com.
Saif Alkeem, head of wealth management and priority banking at ADIB, said: “It makes sense for savers to diversify across asset classes through a variety of funds with different risk-reward characteristics.”
“The Khuttati savings plan is very well structured, to allow customers to put aside some money every month with the aim of taking advantage of international markets. The maturity of the investments is also set in line with the client’s needs, and withdrawing funds is also easy,” he added.
Alkeem also noted that Khuttati has been designed to meet the varying risk appetites of clients.
According to ADIB’s latest Moneysmart survey of spending and saving, over half of the UAE residents save most months, while only 5% of the residents claiming they never or rarely save.
Moreover, 46% of the survey participants said they keep their savings in cash or deposits.
Of the respondents, “28% invest in their own businesses, 24% save to buy real estate, 24% invest in publicly traded shares, and 9% place their savings into mutual funds.”
