HBZ Bank SIRAT Review - Halal Finance Products

A Mudarabah savings account where the bank acts as Mudarib (manager) and the depositor as Rab-ul-Maal (financier), with earnings determined by Islamic principles and vetted by the bank's Shariah advisors. The account offers Shariah-compliant profit distributions and full access through HBZ's digital channels, sitting between the Qard current account and the notice-based Premium Call Account on the Sirat deposit ladder. Rates are tiered and available from branches, with the bank publishing its Islamic profit rates separately from conventional interest rates.

The transactional foundation of HBZ Bank's Sirat Islamic banking: a Qard-based current account for individuals and businesses where the customer is the lender and the bank the borrower, guaranteeing the balance. Distinctive features include multi-currency operation, availability to both resident and non-resident entities subject to regulatory requirements, debit cards linkable to Apple Pay and Google Wallet, SMS alerts on every transaction, and real-time transfers through HBZ's app and web banking with PayShap support. HBZ, the South African subsidiary of Swiss-based Habib Bank AG Zurich operating locally since 1995, delivers Sirat through window operations, Islamic branches and a dedicated Islamic banking branch.

HBZ's Sirat business finance shelf, all on named contracts: Diminishing Musharakah Commercial Property Finance for business premises, Income Generating Properties finance for building Shariah-permissible rental property portfolios, Asset Finance for capital expenditure on equipment and machinery, Sirat Al Bai Financing for trading businesses selling ready-to-sell products on cash or credit, and Sirat Murabaha trade finance alongside Islamic letters of credit, guarantees, receivable financing, bills collection and import/export financing for cross-border traders. The suite leverages Habib Bank AG Zurich's presence across Pakistan, the UAE, the UK, Switzerland and Africa for trade corridors.

HBZ's fixed-term Islamic investment: certificates issued on a Mudarabah basis (bank as Mudarib, depositor as Rab-ul-Maal) for tenors of one, three, six and twelve months, paying attractive profits at maturity, with a one-year variant that pays profit out monthly for income needs. Certificates can be managed through online banking, and investors can access various facilities from HBZ's Islamic banking suite against their certificates, effectively using the SIIC as compliant collateral. It serves individuals and businesses preserving and growing capital.

A structured Diminishing Musharakah facility for acquiring vehicles, positioned primarily at commercial vehicles and business transportation equipment with flexible payment plans. Under the structure the bank and customer jointly own the vehicle: the customer uses the bank's share as lessee, paying rentals, while progressively redeeming (buying out) the bank's ownership units until sole ownership passes to the customer. It sits within HBZ's broader Diminishing Musharakah financing shelf that also covers property and machinery, all delivered through the Sirat window's relationship bankers.

A Mudarabah-based notice account with five notice tiers: 48 hours, 7 days, 32 days, 60 days and 92 days. There is no minimum balance requirement, profit rates are tiered by amount invested, profit accrues on day-end balances calculated daily and pays out monthly, and both partial and full withdrawals are permitted with multiple notice requests allowed simultaneously. The account serves individuals plus close corporations, private companies, trusts, partnerships and sole proprietorships, managed through web banking. It is HBZ's answer to the notice-deposit category dominated conventionally by money market accounts.