Mourabaha

Définition

It is a buy-sell contract where we give the mandate to act in our name before the supplier of the good; which you expressed need of and whose price has already been fixed and cannot be modified.  

Advantages:

  • In conformity with  Islamic law ;
  • Sharing risk till the property is transferred: we are not just a financial institution which puts money at your disposal without questioning its use or the risks you can encounter. We take part in acquiring the good and bear any risk which occurs when the good is still under our responsibility.
  • Transparency in the transaction: it is compulsory for the vendor to disclose the cost of the asset, as well as the amount of the margin charged to the buyer.
  • The good is acquired at the actual cost and we are vigilant to ensure that the supplier does not speculate: once determined, the price cannot be changed. The price does not have to be linked to a variable index like LIBOR. Through this preventive measure, you are free from speculation. 

Mourabaha funding stages:

  1. Request: Express your need for funding for the purchase of goods by signing a framework agreement promising to buy on the basis of an agreed profit margin, added to the initial cost. Your funding request has information on you, your sector of activity, the nature of goods solicited, guarantees, etc. After examining the request and upon approval by the bank department involved, acceptance of the funding is notified.
  2. Approval: In response to acceptance by the bank, you will make a definite undertaking to buy the goods once they are in our possession.
  3. Definite undertaking: On the basis of your undertaking, you will sign a purchase contract with the supplier. You can be mandated to negotiate and receive the good and even execute the contract with the supplier; however, you will only be working as our representative.
  4. Purchase of goods: Being the owner of the good, we enter into a sales contract with you. This is the main stage and completion of the procedure from stage 1 to 4.