Banking Facilities

Murabaha

Is when the client want to buy a commodity, he ask the bank to buy this commodity and agree to buy it from the bank after adding some profit.

The client pay the price of the commodity along with the profit to the bank in one payment or several payments or delayed payment and normally the price paid on monthly basis payments or yearly payments on one payment after specific time.

• Cost-plus Financing (Murabaha)

1. Personal documents.
2. Real estate guarantee, securities or cash money.
3. Presenting financial statements.
4. Joint surety.
5. Feasibility study and cash flow for the project.
6. Commercial reputation of client and stating his work address.
7. A statement of financial assessment for client.
8. Account statement for client in other banks.
9. Incorporation contract for the company and the incorporation statement (for companies).
10. Balance sheet for the company.
11. Lease contract for the place of commercial activity or title deed of property.

Musharaka

Musharaka is a relationship established by the parties through a mutual contract. As bank and client provide money on equal shares or different shares to establish a new project or company or to contribute in existing project as every one of them become owner in the capital and entitled to profit shares, loses divided according to shares of each partner.

• Financing by Participation

1. Personal documents.
2. Real estate guarantee, securities or cash money.
3. Presenting financial statements.
4. Joint surety.
5. Feasibility study and cash flow for the project.
6. Commercial reputation of client and stating his work address.
7. A statement of financial assessment for client.
8. Account statement for client in other banks.
9. Incorporation contract for the company and the incorporation statement (for companies).
10. Balance sheet for the company.
11. Lease contract for the place of commercial activity or title deed of property.

Mudaraba

Mudaraba is one of the most important methods of money investment in Islamic banks and it is by sharing capital and labor as the first receive his profit for capital and the second received his profit for his labor.

• Financing by Speculation

1. Personal documents.
2. Real estate guarantee, securities or cash money.
3. Presenting financial statements.
4. Joint surety.
5. Feasibility study and cash flow for the project.
6. Commercial reputation of client and stating his work address.
7. A statement of financial assessment for client.
8. Account statement for client in other banks.
9. Incorporation contract for the company and the incorporation statement (for companies).
10. Balance sheet for the company.

11. Lease contract for the place of commercial activity or title deed of property.

The Loan Al Hasan

As long as the bank is not dealing with interest, so the bank will provide such loans but the client should commit to return the loaned amount in specific date without interest.

The bank can provide this loan to his client’s involved in different financial processes (Musharaka & Mudaraba) to offer specific facilities to them to stimulate them and encourage them for a good dealing with the bank and for good performance.

• Beneficence Loan

1. Personal documents.
2. A sponsor that has a salary equals to twice the amount of installment.
3. A written pledge from the sponsor.

Istisna'a

According to the big changes in the volume and values of the projects required by development needs either the government do or assigned to private sector, in the light of cash flow scarcity and insufficient funds for this projects in addition to lack of needed expertise to accomplish them, an urgent need emerged for a new funding formula in line with Islamic legitimate concepts.

Thus Istisna'a contacts become part of selling contracts which can be used in Islamic banks to meet the needs and wishes of groups and individuals that can’t be funded with other sales contracts through manufacturing of commodities and pay its prices either deferred or in installment according to the abilities of the client and the approval of the manufacturer (The bank) on it.

Ijara

Ijara is a funding contract used by Islamic Banks.

In the process of Ijara the bank (as the lessor) purchase the property desired by the clients (as tenant) and give the client the right to use it for agreed specific period, and in return the client pay the price of purchasing as rent and the property still owned by the bank till paying the funding price then it is transferred to the client.