We expect most participation banks to soon start offering financing through different types of sharia-compliant structures such as Mudarabah, Ijara and Istisna
Other popular financing products are Murabaha, Istisna
, Ijarah, Salam and others.
He stated that the institution's products such as Musharakah Mutanaaqisah (diminishing partnership), Ijarah bi-tamlik (lease-then-purchase), Musharakah and Mudharabah (temporary partnership), Istisna
' (construction financing) and Qard Hassan (benevolent loan) had assisted its members in the acquisition of home and landed property, asset financing, improvement of the capital base of their businesses, building of personal houses and in meeting up with contingencies.
The department offers the options of Working Capital Facilities, Contract Specific Finance, Purchase & Leaseback Facilities, Goods Murabaha Finance, Equipment/Vehicles Murabaha Finance, Trade Finance Facilities, Ijara Facilities, Diminishing Musharika, Istisna
Facility and Wakala Bil Istithmar.
On the financing side, we are offering Ijarah, Murabahah, Diminishing Musharakah, Salam, Istisna
as well as Consumer Auto Financing under the product name of 'Hamsafar'.
Dolayisiyla, Sadiki'ye gore, tarihsel olarak Arap demokratiklesme seruveninde eksiklikler ve yanlisliklar tespit edilebilirse de bu durum gelecege tesmil edilecek bir istisna
hali olarak tanimlanamaz.
The main debt-based financing products are Murabaha, Ijara, Salam and Istisna
. The main fee-based services are Wakala and Kafala.
(5.) Bai Bithaman Ajil is deferred payment sale; Ijarah Thumma Al-Bai is hire purchase; Musharakah is equity financing; Ijarah is leasing; Istisna
' is contract manufacturing; Murabahah is cost-plus; Mudarabah is profit sharing.
The products, on the asset side of the balance sheet of the Islamic bank, are: (i) Musharakah (ii) Muderabah (iii) Murabahah (iv) Bai Baithaman Ajil' (v) bai al-salam (vi) Ijarah (vii) Istisna
The use of the Wakalah structure, for example, enables the issuer to utilise certain assets such as Shari'ah-compliant shares, vouchers representing entitlement to a specified number of travel units on public transportation services as well as Murabahah and Istisna
' receivables to form part of the portfolio of assets (such as in the case of the GoM Wakalah Global Sukuk 2016).
The hybrid structure allows the asset ie the dam to be constructed first from the proceeds of Sukuk under the Istisna
mode of Islamic financing while Sukuk-holders will be paid after the asset is operational according to Ijarah.
These are fitting well in the shipping industry starting with straightforward financing vehicles such as murahaba or ijara, and also other contracts including istisna
for the pre-delivery financing of ships under construction, as well as equity partnerships such as musharakah.