Our products

Musharakah (Partnership)

Musharakah literally means “sharing”. It refers to a joint enterprise in which all partners share profit or loss of the joint venture. The financial term is derived from the Islamic legal term “shirkah” with the same literal meaning but having a broader application. more

Mudarabah (Passive Partnership)

Mudarabah is a special type of partnership. This is a contract between two parties: a capital owner (called rabb al-mal) and an investment manager (called mudarib). Profit is distributed between the two parties in accordance with the ratio that they agree upon at the time of the contract. more

Diminishing Partnership

This is a contract between a financier (the bank) and a beneficiary in which the two agree to enter into a partnership to own an asset, as described above, but on the condition that the financier will more

Bay al-murabahah (Sales Contract at a Profit Mark-up)

In the classical fiqh literature, there is a sales contract called bay mu’ajjal which refers to sale of goods or property against deferred payment (either in lump sum or instalments). Bay mu’ajjal need not have any reference to the profit margin that the supplier may earn. more

Ijarah (Leasing)

In the simple lease contract the usufruct generated over time by an asset, such as machinery, airplanes, ships or trains is sold to the lessee at a predetermined price. This is called an operating lease, as opposed to a financial lease. more

Lease Ending in the Purchase of the Leased Asset

Since the entire risk is borne by the lessor in the operating lease, there is a danger of misuse of the leased asset by the lessee. The financial lease helps take care of this problem by making the lease period long enough (usually the entire useful life of the leased asset), more

Salam

Salam is a sales contract in which the price is paid in advance at the time of contracting, against delivery of the purchased goods/services at a specified future date. Not every commodity is suitable for a salam contract. more

Al-istisna (Contract of Manufacture) and Al- istisna Al-Tamwili (Financing by Way of istisna)

Al-istisna is a contract in which a party orders another to manufacture and provide a commodity, the description of which, delivery date, price and payment date are all set in the contract. Any party can cancel the contract after giving a notice to the other before the manufacturing work starts. more

Jualah

It is a contract whose objective is to perform a given task against a prescribed fee (in a given period). The services of real estate agents are a good example. For example, someone places his house for sale with a real estate agent, say within three months. more

Wakalah

Wakalah is a contract whereby somebody (principal) hires someone else to act on his behalf i.e. as his agent for a specific task. The agent is entitled to receive a predetermined fee irrespective of whether he is able to accomplish the assigned task more

Takaful

An alternative for the contemporary insurance contract. A group of persons agree to share certain risk (for example, damage by fire) by collecting a specified sum from each. In case of loss to anyone of the group, the loss is met from the collected funds. more

Sukuk

Sukuk, are instruments for pooled securitizations. These are secondary instruments based on returns from real assets or their usufruct. Sukuk are meant to mobilize resources from the market based on the strength of one’s balance sheet, more

Qard Hasan

Charitable loans free of interest and profit-sharing margins, repayment by instalments. A modest service charge is permissible.

Hawalah

An Hawalah is an agreement by the bank to undertake some of the liabilities of the customer for which the bank receives a fee. When the liabilities mature the customer pays back the bank.

Mu’ajjal

Purchase with deferred delivery: a sales contract where the price is paid in advance by the bank and the goods are delivered later by the customer to a designee.

Wadi’ah

Deposits, including current accounts (giro wadi’ah).

Qard al-Hasanah

Unremunerated deposit products, usually for charitable purposes.