Wakalah (Agency)

Wakalah refers to a contract where a party authorizes another party to act on behalf.

Products under Wakalah:

• Inward Letter of Credit-i
• Outward Letter of Credit-i
• Inward Bills for Collection-i
• Outward Bills for Collection-i

Murabahah (Cost-Plus Profit)

Murabahah is a “cost-plus profit” sale contract. It is a facility granted to bank’s client for financing their short term working capital requirement by way of lump sum deferred payment cost plus profit.

Products under Wakalah:

• Murabahah Working Capital Financing-i
• Accepted Bills-i (Purchase/Import)
• Outward Letter of Credit-i

Musyarakah (Joint Venture)

Musyarakah is defined as a joint venture on profit / loss sharing between a bank and its client whereby the client has to contribute part of the capital in a joint venture project. The profit derived from the project shall be distributed at a profit ratio as agreed between the bank and its client.

Products under Wakalah:

• Outward Letter of Credit-i

Kafalah (Guarantee)

Kafalah is a contract of guarantee in which one party guarantees the fulfillment of a claim or performance of an obligation which is due to another party in a case of default.

Products under Wakalah:

• Shipping Guarantee-i
• Bank Guarantee-i

Bai’ Dayn (Debt Trading)

Bai’ Dayn refers to the sale of a debt arising from trade and services transaction in the form of a deferred payment sale. The client sells this debt to the Bank at a discount.

Products under Wakalah:

• Bai’ Al-Dayn Working Capital Financing-i
• Foreign and Domestic Bill Purchased-i
• Accepted Bills-I (Sales/Export)