Property Finance - Commercial And Industrial (Murabaha/ Musharaka)

Investing in property or owning the property from which you operate makes good business sense. The extremely high rentals being attached to commercial properties has led to increased investment in the commercial property market. In the years to come a business will no doubt benefit by acquiring an asset that generally increases in value.

During the last decade, Al Baraka Bank has gained considerable experience in the commercial property financing based on the sound Islamic economic principles of Murabaha and Musharaka. These methods of financing allow you one of the following options:


The Bank will purchase the property of your choice and sell it to you on a Murabaha basis at a price which includes a profit. The price is repaid in instalments over an agreed period. No changes can be made to the terms of the contract over the stated period.


This is a partnership contract between two or more parties who together provide the capital. When entering into a Musharaka transaction for commercial property the Bank and the purchaser agree to the proportionate share of the capital to be invested and the basis for sharing the income from the property. The purchaser can lease the property himself/ herself, or lease it to other tenants. Musharaka financing is particularly attractive to businesses in need of capital for expansion. The share of the profits and losses are agreed upon when the partnership of formed. The purchaser also has the option to buy out the Bank's share over an agreed period.

With Al Baraka Bank you have the opportunity of establishing your financing facility before you even begin your negotiations and have the benefit of negotiating a cash deal, possibly at a better price. Approved facilities are valid for a certain period and subject to the Banks' valuation of the property. Repayment can be structured to suit your company's circumstances. At the end of the repayment period you will acquire an income generating asset. Or, if you are the occupant you will not be subjected to the continually escalating rental cost.

Speak to an Al Baraka finance consultant to structure a package that will meet your future needs.

Click here to contact us and find out more about investing with Al Baraka Bank.

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Page last updated: 2022-01-19