Trade Finance - Murabaha

More and more people the world over are applying the sound economic principles of Islamic banking to their business practices.

In countries in which Islamic banking is the only official system the financial sector has been extremely innovative and banks have evolved appropriate financing methods. These methods have stood the test of time and have proven to be an efficient means of financing trade.

In South Africa, Al Baraka Bank has effectively provided trade finance based on these Islamic financing principles.

Al Baraka can purchase a commodity at the request of the client and sell the commodity to the client on a Murabaha basis. The selling price which includes a profit and the repayment terms are agreed upon on the date of the Murabaha transaction.

Typically the Bank grants a revolving trade finance facility to the client within this facility.

Speak to an Al Baraka consultant to structure a Trade Finance Package to meet your business requirements.

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Page last updated: 2022-01-19