Concepts of Products


'Musharaka' in Arabic literally means sharing. Since Islam has prohibited interest it cannot be used for providing funds of any kind. Musharaka is an ideal alternative for interest-based financing playing a vital role in an economy based upon Islamic principles.

Ijarah (Lease)

"Ijarah" is a term of Islamic Fiqh. Literally, it means 'to give something on rent'. In Islamic jurisprudence, the term 'Ijarah' is used for two different situations. "T o employ the services of a person on wages given to him as a consideration for his hired services." The second type of Ijarah is generally used as a form of investment, and also as a mode of financing. The difference between Ijarah and a sale is that in the latter case the majority of the property is transferred to the purchaser.


In modern Islamic banking, the term refers to a buying and selling transaction between the bank (or financial institution) and the customer, whereby the former buys a property (or an asset, e.g. a house) at the prevailing market price and sells it to the customer at a mark-up price where payments are made by installments over a period of time agreed upon by both parties.


Al Wakalah means agency, or delegating duty onto another party for specific purposes and under certain conditions. Under the concept of Al Wakalah, the bank becomes your agent. You are then required to deposit the full amount of the price of goods to be purchased or imported.


Refers to an investment on your behalf by a more skilled person. It takes the form of a contract between two parties, one who provides the funds and the other who provides the expertise and who agrees to the division of any profits made in advance.


In a Mudaraba contract, the expert who manages the investment is known as Mudarib.