Al Kafalah Bank Guarantee (KBG)

This is a surety given by the Bank (made under the concept of Al-Kafalah of Al-Dhamanah) whereby agrees to guarantee a liability of a customer/applicant in case of the latter defaults in fulfilling his obligation.

SG-i is a facility granted by the Bank to importers for clearance of goods at the port without producing original Bill of Lading. It should only be issued for documents drawn under the Bank’s LC or customers with approved SG-i facilities for collections documents.

Types of Bank Guarantee

There are several types of guarantees issued by the bank depending on the needs of the customers.

The common ones are listed below:

• Tender / Bid Guarantee;
• Performance / Contract Guarantee;
• Guarantee for advance payment;
• Guarantee in Lieu of Security Deposits / Supply Guarantee;
• Guarantee for exemption of Custom Duties;
• Guarantee of Maintaining Ledger Account;
• Guarantee for Honouring of Cheques;
• Custom Bond.