Habib Bank Zurich UK - Sirat Islamic Banking Review - Halal Finance Products

Habib Bank Zurich plc, the UK-incorporated bank of the Swiss-headquartered Habib Bank AG Zurich group, operates its Islamic banking business under the Sirat brand as a window: Shariah compliant products managed alongside (but segregated from) a conventional book, across eight UK branches in London, Manchester, Leicester and Birmingham plus digital channels. For practical purposes Sirat has become the default answer to a question that should be easier than it is: where can a UK Muslim household or small business still open an Islamic bank current account? AlRayan closed retail accounts, Nomo excludes UK residents, and the fintechs are e-money - Sirat opens accounts, in branches, for people and companies including SPVs.

The deposit story is a tale of two shelves. In-branch, the Sirat Wakala Deposit runs seven terms from 1 month (1.25%) to 5 years (3.25%) from 10,000 GBP - useful for very short halal parking and negotiated business placements, otherwise unremarkable. Online, the HBZ Sirat eDeposit pays 4.46% at 6 months, 4.81% at 12 months, 4.10% at 2 years, 4.05% at 3 and 4.00% at 5 - the 6 and 12 month rates leading every published Islamic rate in Britain at the crawl date (2026-08-06) and earning the bank Moneynet's Best Fixed Rate Savings Provider 2026. The 181bp gap between the bank's own branch and online 12-month rates is the sector's clearest illustration of where deposit competition actually happens. The Sirat Savings Account adds Wakala flexibility in GBP, USD and EUR from 10,000 GBP for residents, non-residents and entities, with rates on application.

Financing is Sirat's second franchise: Income Generating Property Finance for purchase, refinance or equity release on the widest asset list in UK Islamic finance - individual BTLs, unlimited-size BTL portfolios, HMOs, offices, retail units, warehouses, student accommodation, banquet halls - at up to 65% of property value on terms to five years. Customers choose between Diminishing Musharaka (joint purchase with rent and staged acquisition, or rent-only with a lump-sum buyout) and Commodity Murabaha, a structure choice that respects scholarly diversity and which the bank's FY2024 annual report confirms drives its BTL growth. Rates are unpublished and relationship-negotiated through branches and a national intermediary channel. This desk fills the ticket gap between Gatehouse's retail BTLPPs and AlRayan's 2.5m GBP+ institutional floor better than anyone.

Governance is the honest asterisk. Sirat products are structured, managed and operated under AAOIFI Shariah standards with the guidance of the bank's Shariah Advisor and external advice, review and audit from IFAAS, and Sharia compliance certificates are published. That is credible, externally checked assurance - but it is not a named scholar board on a wholly Islamic balance sheet, and customers for whom that distinction matters should weigh it against the yield and access advantages. Deposits carry FSCS protection to 120,000 GBP like any UK bank.