Bahrain-based ABC Islamic Bank, the wholly-owned subsidiary of Arab Banking Corporation (ABC), is preparing to introduce an Islamically- acceptable credit card. 'We are looking at a joint project with Arab Financial Services to launch an interest-free credit card,' says Adnan Yousif, chairman of ABC Islamic. 'And we have approval from our sharia committee.'

The card will function on a similar basis to conventional credit cards but rather than interest being charged a fee will be levied for its use. 'We are looking to offer an alternative to our Islamic customers to traditional credit cards,' says Yousif. 'We hope that it might be introduced before Ramadan.'

Yousif refuted recent stories that ABC Islamic was working on a large financing facility for an oil and petrochemicals project in Iran. However, he says that the bank is involved in some export financing deals for trade between Iran and some GCC countries. 'We are particularly well positioned to exploit good relations and growing trade as we are able to use ABC's representative office in Tehran,' says Yousif.