UAE News Today : Business

DMCC and Aafaq Islam Finance pioneer digital transformation in Sharia-compliant financial services

DMCC – the world’s largest free zone and the Government of Dubai Authority for Commodity Trade and Business – has announced the completion of a landmark digital-led project with Aafaq Islamic Finance in which the Sharia-compliant financial products and services provider used the DMCC Tradeflow platform to significantly increase efficiency across its portfolio.

The collaboration saw Aafaq use DMCC’s customizable online platform, DMCC Trade Flow, as the underlying facilitator of its Murabaha transactions. Thanks to the efficiency and cost savings provided by the fully digital Tradeflow platform, Aafaq saw an increase in monthly transactions and the average transaction cost decreased.

DMCC Tradeflow also facilitated greater efficiency in Aafaq credit card issuance, which was reduced to just 10 minutes. This led to an increase in credit cards issued over a one-month period.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, saying:

“This unique collaboration between DMCC and Aafaq Islamic Finance is a leading example of how digital transformation can be used to substantially drive efficiency and savings, improve accessibility and minimize operational expenses and costs. With over AED 1 billion in Islamic finance transactions through DMCC Tradeflow in the first half of 2023 alone, our value proposition for Islamic financial institutions continues to grow exponentially and we look forward to pioneering even newer and more inclusive online financial tools to support solutions for global trade finance.”

Aafaq Islamic Finance CEO Hisham Hammoud commented:

“We have witnessed remarkable results from our collaboration with DMCC and utilization of the DMCC Tradeflow platform. Murabaha’s substantial increase in transactions and significant reduction in average transaction costs illustrate the value that digital transformation can bring to our operations. At Aafaq, we are committed to improving our services and making financial products more accessible to our customers. The introduction of add-on cards and the efficiencies brought by DMCC Tradeflow have not only expanded our portfolio but have also allowed us to issue credit cards in record time, resulting in an impressive increase in credit cards issued in recent years. months”.

DMCC Trade Flow provides a range of online services specifically designed to facilitate collateral financing, jewelry financing and, in the case of Aafaq and similar partners, providing Islamic financial solutions. DMCC Tradeflow offers Murabaha trading on physical commodities and the ability to transact multi-product, multi-currency transactions from around the world, backed by UAE-based assets that meet Shariah compliance criteria.

News source: Dubai Press Office

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