PRODUCTS & SERVICES

 

 

MURABAHA (Cost plus mark – up agreement)

Murabaha is a contract in which a customer requests to the Islamic financial Institution to purchase a commodity and sell it to him/her at cost plus mark-up. Repayment of the cost plus mark-up will be on a deferred payment basis. The cost of the commodity is paid to the supplier and goods delivered directly to the Institution or to the customer.

MUDARABA

Mudaraba is a profit sharing contract in which one party offer the funds (investor) and the other ( the financial institution) invest and manage the fund.

It’s a mutual agreement between the and the specialist with the expertise. The investor (Rabal Mal) is the dormant partner and the bank is the manager of the funds (Mudarib). Profits are shared at a fixed ratio while any loss is undertaken by the owner of funds provided that the Mudarib is not negligent in the investment of the funds.

MUSHARAKA (Partnership financing)

Musharaka refers to joint venture agreement where both the bank and the customer contribute towards the fund required for the venture in the agreed proportion. In short, it is based on equity participation between the Islamic Financial Institution and clients.

ISTISNA’A (Contract of Manufacture)

This is where the bank agrees to finance the manufacture or production of a product and payment is made upon completion and delivery of the item in question. Income generated from providing this product is small (less than one percent of total in vestment income). Istisna’a is currently advanced to staff.

IJARA

This arrangement is no different from conventional finance and operating leases where the income generated is in the form of rented income accruing to the bank.

REAL ESTATE DEVELOPMENT

The Bank acquires real estate in prime areas with the objective of reselling.