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Dubai Islamic Bank Halts ‘Salary in Advance’ Service

Dubai Islamic Bank Halts 'Salary in Advance' Service

Dubai Islamic Bank (DIB), the UAE’s largest Shariah-compliant lender, has ceased its popular ‘salary in advance’ facility, citing a comprehensive review of its financial products. The decision affects numerous residents who relied on the service during financial emergencies and pressing personal needs.

The bank explained that the move followed a meticulous evaluation of its product portfolio. While acknowledging the importance of the service to its customers, DIB emphasized its commitment to exploring alternative solutions that would continue to support their financial well-being.

The ‘Salary in Advance’ feature was a favored product among residents seeking financial relief. It allowed customers to apply for an advance salary through online banking or ATMs, typically for a nominal fee. However, with its discontinuation, customers must now seek alternative means to address their urgent financial requirements.

Several local banks also offer similar facilities, reflecting the demand for such services among UAE residents. The decision by DIB underscores a strategic shift in its financial offerings, signaling a reassessment of its product range to align with evolving market dynamics and regulatory requirements.

Despite the cessation of the ‘Salary in Advance’ service, DIB remains committed to providing innovative financial solutions to meet the evolving needs of its customers. The bank reiterated its dedication to enhancing service offerings through regular assessment of products and services.

The announcement comes amid a period of robust financial performance for DIB. In 2023, the bank reported its highest-ever profitability, with a net profit of Dh7 billion, marking a significant increase of 26 percent compared to the previous year. This remarkable performance was attributed to factors such as rising non-funded income and lower impairment charges.

While customers may face initial challenges in adjusting to the discontinuation of the ‘Salary in Advance’ service, DIB reassured them of ongoing efforts to communicate any new developments and alternative solutions. The bank expressed appreciation for customers’ understanding during this transition period.

As the UAE’s financial landscape continues to evolve, DIB’s decision reflects its commitment to adapt to changing market dynamics while ensuring the financial well-being of its customers remains a top priority.

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