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Trade Based Financing (Murabaha)
Murabaha is a trade contract for the sale of an item on cost of good plus mark-up whereby the seller is obliged to disclose to the buyer the cost of goods sold and a margin of profit included in the sale price of goods agreed to be sold. The contract is normally done on deferred payment basis. Murabaha can be repaid up to a period of 6 years at KCB.
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Asset-Backed Financing
For purchase of assets such as vehicles, machinery, stock, etc.
Construction Murabaha
For purchase of building materials.
Working Capital Murabaha
To meet various working capital needs which involve purchase and resale of specific items.
Trade Based Financing (Tawarruq)
Tawarruq is the process of purchasing a commodity for a deferred price and selling it to a third party for a spot price to obtain cash. This is typically done in a matter of minutes through an existing Shariah-Compliant commodity market. It is designed to cater for the needs of getting cash in meeting various commitments; it can be done between the Banks as liquidity management too and with customers who need cash. Repayment can be up to 6 years as well. KCB carries out this arrangement with both local and foreign markets such as Bursa Suq Al-Sila (BSAS) depending on need and type of transactions to be performed.
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Interbank
Facilitate transactions between banks.
Cash
Customers in need of cash who cannot be assisted using other non-cash Islamic Financing Contracts.
Restructure
Restructure of existing Financing Contracts.
Takeovers
Takeover of facilities from other banks either conventional/Islamic financing.
Partnership Based Financing (Musharakah)
Financial contract between two or many parties to establish a commercial enterprise based on capital and labor. The profit is shared at an agreed proportion while any loss is incurred according to the amount of contribution. Each party must contribute a share of capital. Standard financing up to 6 years. House financing up to 10-20 years.
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Fixed Asset Financing
Commonly used in house financing.
Project Financing
For injecting capital into a project.
Asset Backed Financing
Can also be used to finance vehicles and machinery by contributing partially to the amount required.
Leasing (Service Ijarah)
The Service Ijarah finance product is designed to provide customers with financing to acquire services and is based on the Islamic financing principle of 'Ijarah'. The Bank (Lessor) leases the services required by the Customer (Lessee) directly from the provider and sub-leases it to the Customer then make repayment over a period, including agreed upon fees to the Bank. 1 year renewable contract.
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Bill Payments
Facilitates various payments such as school fees, medical fees, rental fees, salaries, cleaning costs, insurance payments etc.
Statutory Payments
Taxes, duties, and other Government related bills and payments.