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Corporate Banking
Murabaha Real Estate

What Is Murabaha Real Estate?

Means of finance whereby the Bank purchases and possess a property/properties of requirement to the customer and sells the same to customer on a deferred-payment basis at cost plus profit price.

Product Description:

The customer requests the Bank to provide line of facility to purchase property/properties, where the customer will be purchasing the property/properties from the Bank at a pre-agreed price that is comprised of the cost plus a profit for settlement on a deferred basis.

Features & Benefits:
  • Repayment for the sale price may be Monthly/Quarterly/Semi-annually or Bullet payment.
  • Both cost and sale price of the property under Murabaha contract shall be known to the customer before signing of the contract.
  • Flexible Tenor
Requirements:
  • Audited financial statements for the last three financial years along with the cash flow statements for these three years
  • New evaluation of the property/properties.
  • Legal documents of the customer.
Cost of Financing

Rate: fixed rate (CBK discount rate + %).

Terms & Conditions:
  • The subject must present recent evaluations of the collaterals and the same to be evaluated on agreed periodical basis.
  • The property/properties should be insured by Sharia’ah compliant insurance policy.
  • Granting the facilities are subject to internal assessment and approvals.
  • The customer shall disclose to the Bank all parties which are considered legally or financially related to the customer pursuant to the definition specified in the Central Bank’s directives in respect of maximum limits of credit..
Q & A:
  • Q: who owns the property under Murabaha Real Estate?
  • A: The property will be in the name of the customer and mortgage favouring the bank.
  • Q: Can the Murabaha Real Estate support medium or long term finance?
  • A: Yes, Murabaha Real Estate product can be tailored in flexible terms depending on the financing requirement and Bank credit assessment.