In order to meet Medium to Term Long Financing requirements or to expand the Business operations, following solutions are available to our valued customers:
The concept of Ijarah is similar to Leasing in conventional Banking. Ijarah is a contract whereby the owner (Bank) of assets transfers its benefits (usufruct) to customer for an agreed period, at an agreed
consideration. In Ijarah, the corpus of leased asset remains in the ownership of the lessor (Bank) and only its usufruct is transferred to the Lessee (Customer). During the entire term of theijarah, Bank being
the owner of the assets retains the title of ownership and also,bears all risks and rewards pertaining to ownership. All the risks related to usage of the assets are borne by the lessee (customer). Ijarah can be
availed for financing of plant, machinery, buildings and all the other fixed assets.
Diminishing Musharaka is commonly used mode of financing the fixed assets. It is a type of Musharaka where Bank and Customer jointly purchase the asset in defined ratios of ownership. Bank’s ownership in
the asset is divided into a number of units and the customer periodically purchases these units from the bank over a specified period. Over time, the customer purchases all units owned by the bank and becomes the
sole owner of the asset.
Al Baraka Bank offers tailor made solutions for the complex projects through its range of Shariah compliant products and services. Through project financing, Al Baraka offers the solutions for infrastructure,
industrial and other long term projects.
Islamic Export Refinance (this portion should be part of Import and Export Financing section)
Islamic Export Refinance is a unique Shariah compliant product provided to exporters to meet their special requirements in a completely Shariah compliant manner.