Al Baraka Bank logo
Shariah Terminology
Untitled Document

Ijara :  Letting or lease. Sale of a definite usufruct of an asset in exchange for a definite reward. In Islamic finance it refers to an arrangement under which the Islamic bank leases an asset to the client against an agreed rental.

Mudaraba : A form of partnership where one party provides the funds while the other provides expertise and management. The latter is referred to as the Mudarib. Any profits accrued are shared between the two parties on a pre-agreed basis, while loss is borne by the provider(s) of the capital.

Murabaha : Literally it means a sale on mutually agreed profit. Technically, it is a contract of sale in which the seller declares his cost and the profit. This has been adopted by Islamic banks as a mode of financing. As a financing technique, it can involve a request by the client to the bank to purchase a certain item for him. The bank carries out the request and thereafter sells the item to the client at cost plus profit which is stipulated in advance.

Musharaka: Partnership between two parties, who both provide capital towards the financing of a project. Both parties share profits on a pre-agreed ratio, but losses are shared on the basis of equity participation. Management of the project is carried out by both parties. However, the partners also have a right to forego the right of management/work in favour of any specific partner or person. There are two main forms of Musharaka: Permanent Musharaka and Diminishing Musharaka.

Sukuk is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds. Investment Sukuk may be defined as certificates of equal value representing undivided shares in the ownership of tangible assets, usufruct and services or (in the ownership of) assets of the particular projects or any specified investment activity.

Statements Online
Click here to view your online statements.

Internet Banking
Click here to login for this new online service

Page last updated: 2012-09-21 | version: 3

Home Page   l   About Us   l   Investment   l   Internet Banking   |  Islamic Banking   l   Financial information   l   Legal infomation   |  Site Map 
This site is best viewed with Internet Explorer 7 or later with a resolution of 1280x1024.

Albaraka Bank Ltd Reg No 1989/003295/06. Albaraka Bank Ltd subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. Albaraka Bank Ltd are an authorised financial services provider. Albaraka Bank Ltd is a registered credit provider in terms of the National Credit Act, 34 of 2005 (NCR Reg No NCRCP14).  An Authorised FSP No.: #4652