The duration of the Wakala
is one week, so it is a handy tool for short-term liquidity management of Islamic banks.
The one-week wakala
contracts, offered to Islamic retail banks every Tuesday, will allow the banks to deposit excess funds with the central bank, which will invest their money in portfolios containing sukuk.
The takaful company, or to be specific, the shareholders, has no rights to the money credited to or remained in this account apart from their stipulated proportion of wakala
charges, and in some cases may also include performance fees.
Islamic banking therefore uses various principles recognised as Sharia compliant such as Ijara (leasing), Musharaka (partnership) and Wakala
Bank Nizwa, Oman's first Islamic bank, continues to facilitate the development of the domestic Islamic interbank through the execution of Wakala
agreements, a press release said.
Oman Islamic lenders build interbank market with wakala
Islamic banks in Oman are building a counterparty network for wakala
, a Shariah-compliant agency agreement, to use as a major tool for their interbank funding needs.
Bank Alkhair jointly led the sukuk program, which is based on the Islamic Wakala
Manama, July 17 (BNA) -- Gulf Finance House (GFH) has successfully restructured the remaining debt on a syndicated Wakala
facility amounting to $100 million, led by Bahrain-based Liquidity Management Centre (LMC).
15 billion and comprises an Islamic ijara facility including separate riyal and US dollar tranches, an Islamic Wakala
facility, a commercial facility, a facility to be provided by the Public Investment Fund of Saudi Arabia and a facility to be provided by the Saudi Industrial Development Fund.
The new system is based on the rate of return on capital used by Islamic banks, representing the average profit rate at which bids are made for sharia-compliant interbank transactions, such as murabaha and wakala
deals, between top Islamic financial institutions.
The deal, between FIC and its creditors, which was made on 20 February 2011, was a unique Sukuk Al Wakala
transaction for the purpose of restructuring the debt of FIC.
Fakih said HSBC Amanah was also on a committee working with global standardization body International Islamic Financial Market to create a standardized master agreement for wakala