Treasury and Capital Markets

As a part of Ajman Bank’s effort to emerge as the leading bank in the region, we offer a wide range of innovative and competitive Investment Banking solutions to the UAE and the GCC markets.

Treasury

Our mission is to deploy the liquidity generated by Ajman Bank deposit gathering activities, and capital funds, in such a way as to be in compliance with the Shariah and with an objective to maximize shareholder’s profitability.  The net liquidity available with our branches/business units is pooled at Treasury on daily basis and profitability invested in Shariah Compliant products in the financial market in conjunction with the internal guidelines and market sentiments. 

Due to dynamic and geopolitical changes across the globe, from time to time, main economies experience some unprecedented shifts in financial market on both global and regional basis. Many corporate and financial institutions often get carried away by such shifts and get exposed to market risks. However, clear cut strategy and prompt action could turn such crises into opportunities for corporate entities. 

Ajman Bank Treasury employs state of the art technology to provide a range of products that help our clients to fully manage any financial market and currency risk.  Though our official working days are 5 days a week, from 8.00 am to 4.00 pm, but, our dealers are always available and ready to serve our needy clients, even after the official working hours.

Following are Ajman Bank Treasury’s products and services provided:

Foreign Exchange 

Foreign exchange markets often remain volatile and risks associated with it are higher than inherent risks to interest rate.  The corporate entities from time to time get their cash flows exposed to foreign exchange risks.  Ajman Bank Treasury is focused to cater to the requirements of our customers within Shari’ah and internal guidelines.  The Treasury offers the most competitive rates in the market.

a) Spot Foreign Exchange

Foreign Exchange is the mechanism of converting one unit/s of a currency into another currency. Foreign exchange transactions are executed either between banks or bank and customer. A foreign exchange transaction, which is executed with an exchange rate prevailing on the date of transaction, is called a Spot Foreign Exchange transaction.

b) Forward Foreign Exchange

A Forward Foreign Exchange transaction is a predetermined contract in which the conversion of the currency or delivery will take place at a future specified date with a predetermined exchange rate.  

A proactive hedging strategy will then be recommended to the customer using a Shari’ah compliant product such as Unilateral Promise to Purchase Foreign Currencies which will facilitate Ajman Bank's Treasury to cater the future Foreign Currency requirements and to protect against the risks associated with future foreign currency exchange exposure.

Money Market Products

a) International Murabaha

This is one of the common vehicles used by Treasury to apply liquidity in the interbank market.  Murabaha is concluded by purchasing and selling the same commodities in the spot market with deferred payment terms and conditions.  This vehicle is also used for accepting deposits from the interbank market, under Reverse Murabaha.

b) Wakala

This is one of the most popular MM vehicle used by many Islamic financial institutions for placing and accepting funds in the interbank market.  Wakala investment does not involve any commodity transaction and funds are invested as part of the assets of the bank.

c) Corporate Deposits

Our clients always look for better rate of return on their liquidity.  Ajman Bank, from time to time, offer attractive deposit rates on the Wakala Agreement.  These are communicated through our Retail/Corporate Branches.

Shari’ah compliant Derivatives

a) Profit Rates SWAP

This an effective tool to manage profit rate risk which is used to hedge against inflation or deflation.  This is commonly used by Corporate to reduce the cost and to enhance the yield on the asset book.

 

b) Foreign Currency Forward

This is a common tool used to hedge against the unwanted movement in the foreign currency exchange rates, Shari’ah compliant product (Waad).

Capital Market

Ajman Bank invests its liquidity in Sukuks and similar asset-backed securities in order to maximize the profitability with prudent due diligence and credit quality.   Mainly, due to the shift in global politics in the recent past, Sukuks have attracted the regional market tremendously.  Many conventional financial institutions, including ones in the European markets, have identified Sukuk as a lucrative asset. 

a) Trading on behalf of Clients

Ajman Bank offers similar service to its valued clients whereby clients can trade Sukuks with Ajman Bank Treasury enduring them to diversify their asset allocations and enhance yield on the investment portfolio. Additionally, the Bank structures tailor-made products to the clients in which risk is exposed and restricted to certain asset class instead of individual Sukuk.

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