What it means
The return or cost in an Islamic product, used instead of an interest rate.
Islamic Finance
Profit Rate
The return or cost in an Islamic product, used instead of an interest rate.
CategoryIslamic Finance
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What “Profit Rate” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
Islamic banks use a profit rate instead of an interest rate. It reflects the bank's return on a sale, lease or partnership.
Why it matters
It works out the cost of Islamic finance, so you can compare it with conventional products.
PRO TIPAsk whether the profit rate is flat or reducing.
Test yourself
Which of these best describes Profit Rate? Tap an answer.
Read more about Profit Rate
Guides that use this term — and a tool to put it into practice.
