Business & Corporate banking
Islamic Banking:
The notion & the requirement of Islamic banking derive from the prohibition
of Riba based
banking by Shariah. Riba is forbidden in Islamic economic jurisprudence (fiqh),
on which our
modern banking systems is built, and considered as a major sin. The Qur’an
has forbidden the
charging of interest in exchange for a loan or “riba by clearly stating that:
-
1) Allah has permitted trade and has forbidden interest
2) believers, fear God, and give up the interest that remains outstanding if you are believers.
If you do not do so, then be sure of being at war with God and His messenger. But,
if you repent,
you can have your principal
How banking can be structured under islamic banking?
Islam is a complete religion and present many solutions through its law of economics
and Islamic
Banking is nothing but just an example of this practicable framework. Islamic banking
refers to
banking set out on the Principles of Sharia & Quran, while the basic principal
is taking risk
associated with the transaction/ business and sharing of profit & losss. Amongst
the common
Islamic products used in Islamic banking for catering the finance requirements of
the customers
are profit and loss sharing, joint venture, cost plus,plus and leasing concept.
It is to be noted
here that Islamic banking not only prohibits the collection and payment of interest,
it is also
prohibited investing in businesses that are considered unlawful in Islam, such as
businesses that
produce alcohol or pork, or media companies that produce gossip columns or pornography.
Islamic banking encourages the investment & business environment.
All present Islamic banking products are structured on the basis of the same notions
of sharing
the risk in the business & transaction which is allowed & permissible
under Shariah.
Market Prospective
Islamic finance is one of the fastest-growing segments of the worldwide financial
system,
extending across the Middle East, South East Asia, Africa and Europe. It promotes,
develops and
applies Islamic principles, law and traditions to financial, banking and business
transactions and
encourages investment companies to operate in line with Sharia’a Law.
Introduced in the Sultanate of Oman in late 2012, the islamic banking today is growing
on very
fast pace with most of the customers converting their facilities, liabilities and
banking from
conventional banking to islamic banking on the basis of their religious beliefs
Going forward, the islamic banking is expected to attract a major market share in
Oman
Islamic banking at Maisarah:
Maisarah proudly announce the full fledge launch of Islamic banking which o ers
all banking
products including normal account services i.e. opening the current, saving account,
as well as
o ering all kinds of financial solutions under retail & corporate banking.
Maisarah Corporate banking Objective:
Maisarah Corporate Banking Objective is to
-
1) Facilitate the customer to run their business under Shariah Principals by way
of o ering
them all kinds of Shariah based financial products.
2) To provide innovative Shari’a-compliant financial solutions, diverse product o erings
and quality services to our customers.
3) To develop & nurture long-term mutual relationships with the customer by way of
o ering personalized professional services.
Maisarah Products :
Maisarah Corporate Banking o ers a wide range of Shari’a compliant Islamic Banking
solutions,
including:
-
1) Diminishing Musharakah
2) Murabaha
3) Trade finance products and other Shari’a compliant products
Maisarah Corporate Banking continually strives to expand and innovate by providing
tailor-made
Sharia compliant pure Islamic banking solutions to our clients.
At present we cater to a large number of corporate & business entities representing
various
sectors of the economy. By providing financial solutions for the needs of the Large
Corporate
entities, Mid Corporate entities & Small & Medium Enterprises (SMEs),
Maisarah is committed
towards developing Shariah compliant environment and banking services in Sultanate
of Oman.
Frequently asked questions:
1) Why Maisarah is the right place for your business needs?
Our focus in corporate banking group is about understanding your business, your
operations
and your financial requirements. We provide you with tailor-made and cutting edge
Sharia
compliant financial solutions that are in harmony with your business needs. We believe
that
having the right financial solution is critical to the success of a business entity.
A business may not be able to reach its full potential if the right structure, for
the right amount,
at the right time is not available. Our banking solutions are designed to ensure,
you have the
right products and structures, whenever you need them most. In order to ensure that
we deliver
to you the level of banking expertise and commitment that you deserve, we have built
a team of
Relationship Managers with substantial experience in the local, regional and international
markets, specialized in Islamic Finance. A relationship manager will be dedicated
to your
company, taking on your interests and financial needs, engaging you with appropriate
solutions
and latest o erings, and keeping you abreast of market developments and trends.
Furthermore,
our relationship management team has experience in diverse industries and commerce
and we
ensure working closely with our customers.
2) What do we off er?
Maisarah off ers a wide range of Shariah compliant financing products at market driven
pricing to
all customers, which are designed to assist you in building on your strengths, so
that your
company can seize new business opportunities locally as well as internationally.
The general products o ffered by Maisarah are:
-
• Diminishing Musharakah
• Mudaraba Financing
• Trade – Documentary Credit (LC) and
• Bank Guarantees
3) What is Diminishing Musharakah and how it works
Using this financing instrument, Maisarah and the customer participate in the joint
ownership of
an asset. Ownership of the asset is divided into a number of units and the customer
periodically
purchases these units from the bank over a specified period. Over time, the customer
purchases
all units owned by the bank, making him the sole owner of the asset.
4) What is Murabaha and how it works
Murabaha is based on the exact requirements of each customer. It can be defined
as a sales
transaction where Maisarah purchases the commodity and sells it after adding an
agreed profit.
Thus, it is not a loan given on interest – it is sale of a commodity on a
deferred price.
Murabaha involves the purchase of a commodity by Masiarah on behalf of a customer
and
subsequent sale to the customer on cost-plus-profit basis. The cost and profit margin
to the
bank is expressly disclosed to the customer.
5) How Islamic banking can facilitate me to establish Letter of Credit facility
Maisarah has developed products and services that are innovative and flexible so
that they can
be customized to individual requirements of customers. Maisarah is geared to handle
all forms of
letters of credit or guarantee. Whether importing for local consumption or for re-exports,
Opening and managing letters of credit – transferable, revolving, standby, etc Maisarah
has the
appropriate solution tailor-made for the customer’s requirements.
6) How can I avail Bank Guarantees
Maisarah is o ering all kinds of Guarantees such as bid bonds, performance bonds,
advance
payment bonds, retention monies, maintenance, payment guarantee & etc
7) How long it will take to get the finance?
At Maisarah, we believe the relationship with the customers gets immediately started,
the
moment you approach us, hence we take you as our partner and connect you to the
dedicated
team of RMs, who are available in all business centers to provide you all kinds
of advices &
guidance. You just need to contact them, provide certain kinds of information related
to your
business while we assure you that your application is processed at very fast track..
8) What make us di fferent?
We believe and work on the following Principals:
-
1. We consider the customer as our partner in doing the business.
2. At Maisarah, we believe our success comes from customers success
3. Fastest growing network of branches and corporate business centers across the Oman
4. We provide all Shariah compliant products suitable for all business models
5. At Maisarah, you will find great level of services at very competitive terms
6. Having dedicated & expert Shariah department & product team to structure the tailor
made financial solutions for the clients
7. Having well expert team of corporate who can assess your financial requirement and
provides right financial advices and products matching your business needs
8. Providing strucrtured financial advisory service which can cater to your busines
requirments.
9. Dedicated corporate RMs for your business
9) How to shift your existing banking facilities to Maisrah?
At Maisarah, we have all kinds of Shariah compliant products which can help you
to shift your
conventional liabilities to Islamic banking on immediate basis and thereby making
your business
and its income Halal and in line with the Shariah principals.
