Business? You can do it best if we do it together

Apart from accepting deposits from customers and providing products and services traditionally rendered by Conventional Banks. Arab Gambian Islamic Bank Limited grants financing facilities for short, medium and long-term economically and financial viable undertakings.

The Bank carries on both Commercial and Development Banking activities and at the same time trade in commodities.

Investment Opportunities Offered To Customers

MURABAHA FINANCINGUnder this transaction,  The bank buys a commodity or commodities on the instruction of a customer and sells it/them to him/her/them at a cost-plus mark-up.

- The normal process leading to the approval or otherwise will take place is done by the finance committee.

- Customer again provides a Pro forma Invoice in the name of the bank giving the terms and conditions of the proposed purchase.

- Application for financing facility is completed.

- Details of the collateral security must be submitted.

- The proposal is then appraised by the Appraising Officer and recommendations made by the Investment Manager.

- Like all other applications for financing the decision of the Finance Committee is communicated through the Investment Department.

WE PAY PROFIT NOT INTEREST

TEMPORARY MUSHARAKA

This is a financing window where a customer and the bank enter into a joint venture on temporary basis, which could eventually be converted to a real Musharaka or Murabaha agreement. Where it becomes a Murabaha, the bank sells its portion to The customer at a cost-plus mark-up. On the other hand if it is converted into Musharaka agreement, the Appraising Officer will calculate the expected profit and the two parties will agree on both the capital contributed and the profit sharing proportions.

MUSHARAKA (PARTNERSHIP FINANCING)

This refers to a joint venture agreement where both the bank and the customer contribute towards the funds required for the venture in the agreed proportion. The parties share profit on a pre-agreed ratio. It is a flexible arrangement where the sharing of profits and management can be negotiated by all parties.

IJARA (LEASING/HIRE PURCHASE)

Leasing is an arrangement whereby one party (lessor) purchases durable assets such as plant, machinery, equipment, or land and building and leases (rents) them to another party (lessee).

THERE ARE TWO TYPES OF LEASE PORTFOLIOS:

1.  OPERATING LEASE: This is where the lessor retains the ownership of the asset and takes  care of the it in terms of repairs, maintenance,etc.

2.  FINANCING LEASE: This is where the lessee is responsible for all repairs and maintenance  with an option to buy after the payment of

    the final rent at a mutually agreed price.  The Bank will usually opt for the Financing Lease.

ISTISNA’A

This is also known as Contract of Manufacture. It is a case where an order is made for a labourer or an artisan to make a definite article with agreement to pay a definite price for that particular item when completed. It could therefore be also referred to as pre-production financing, that is, to finance to produce. In Istisna’a, however, payment is made upon the completion and delivery of the item in question. This financing instrument is suitable for housing construction.

BUSINESS ADVISORY SERVICES

In addition to traditional commercial banking, AGIB has been mandated to carry out investment financing by granting medium to long-term finances to customers. The preparation of project documents is also within the purview of the Investment Department. Some customers may have sound investment ideas but may not be able to transform them into reality. Thus, the department offers   advice to customers of the Bank on various aspects of their businesses,  ranging from establishment to keeping proper books of accounts.

REAL ESTATE/HOUSING DEVELOPMENT  

The Bank provides facilities for the acquisition of landed properties, completion of dwelling and commercial building as well as the construction of such building. In this respect the bank targets market segments are medium to higher income bracket and commercial entities.

HAJJ SAVINGS SCHEME

In addition to this saving scheme, products and services to be rendered to pilgrims are straightforward and simple. Already, the Bank is involved, in no small way, in the provision of Saudi Riyals for exchange. The following process are being carried out:

1.        Sensitise the Muslim community on the Availability and advantages of the Scheme;

2.        Determine the period during which Savings will be carried out, that is twelve Months to sixty months;

3.        Periodical payments be agreed with Depositors;

4.        Funds deposited be included in the Bank’s General Investment Fund And invested Accordingly;

5.        Parallel records of the Hajj Savings Scheme be maintained;

6.        Regular monitoring and reporting on this investment portfolio be conducted;

7.        Depositors to be regularly advised on the state of their deposits;

8.       As soon as individual deposits plus accrued  profits are sufficient to meet the total cost of performing the Hajj, the Bank will act on the instructions of depositors.