NBE Seeks Approval To Launch Musharaka Mutanaqisa

The National Bank of Egypt (NBE) has submitted a request to the Central bank of Egypt (CBE) in order to provide the Musharaka Mutanaqisa (diminishing partnership) service.

The Musharaka Mutanaqisa is one of the successful sharia-compliant banking products which witness high demand as is based on risk-sharing between the two transacting parties.

NBE has no plans to expand in inaugurating new Islamic branches in the current period, sources said. NBE has two Islamic banking units in Cairo; one in Dokki which acquires 80% of Islamic deposits and another in Azhar which acquires 20% of the Islamic deposits.

NBE is the second bank which asked CBE for a license to offer such service as Banque Misr earlier was given an approval to offer Musharaka Mutanaqisa and Ijara (Islamic lease) products.