al khaliji

What is islamic banking?

Islamic Banking and Finance involves financial and commercial transactions that are structured and exercised in a Shariah compliant manner as sanctioned by the Holy Al Qur’an and the Sunnah and Hadith of the Holy Prophet Muhammad (may peace be upon him). The Shariah prohibits haram elements and has laid down specific guidelines with the higher objective of achieving the greater good of mankind i.e. the Maqasid al Shariah. All transactions must not contain elements of riba, gharar and maysir. Islamic Banking and Finance, therefore, is not only for Muslims for spiritual reasons, but have been an alternative form of financing and investment for non-Muslims as well due to its ethical and transparent attributes.

Shari’a Supervisory Board Members

Our Shari’a Supervisory Board presides over all Shari’a-related matters for al khaliji in ensuring that all products, operations and services of al khaliji Islamic Branch are Shari’a compliant. The al khaliji Shari’a Supervisory Board consists of the following internationally reknown Shari’a Scholars :

Sheikh Dr Walid bin Hadi

Sheikh Walid bin Hadi is the Executive Member of the Shari’a Supervisory board of al khaliji al islami. He is also a Shari’a supervisory board member for several other Islamic Financial institutions, including QIB, Masraf Al Rayan, Qatar International Islamic Bank, International Bank of Qatar, Q Invest, European Finance House, Asian Finance House, Syria International Islamic Bank and Arab Finance House.

Sheikh Walid holds a PhD and Masters in Islamic Law and has written many publications on Islamic Financial transactions.

Dr Osama Al Dereai

Dr Osama Al Dereai is a Member of the Shari’a Supervisory board of al khaliji al islami. He is also a Shari’a scholar from Qatar. He has extensive experience in teaching, consulting and research in the field of Islamic finance. He received his Bachelor's degree specializing in the Science of Hadeth Al Sharef from the prestigious Islamic University of Madinah. Dr Osama obtained his Masters degree from the International Islamic University (Malaysia) and was conferred his Doctorate in Islamic Transactions from the University of Malaya in year 2007. Dr Osama is a Shari’a board member of various financial institutions which includes First Leasing Company, Barwa Bank, First Investment Company and Ghanim Al Saad Group of Companies amongst others.

Dr Muhammad Imran Ashraf Usmani

Dr Imran is a Member of the Shari’a Supervisory board of al khaliji al islami. He has been teaching Islamic sciences for the past fifteen years in Jamia Darul Uloom Karachi and has published several books and articles, including Meezan Bank’s Guide to Islamic Banking. Dr Imran also serves as a Shari’a Supervisory Board Member and Shari’a Advisor to the State Bank of Pakistan, HSBC Amanah Finance, Credit Suisse, UBS Switzerland, Lloyds TSB, Meezan Bank, Pak Kuwait Takaful Co, the Royal Bank of Scotland, Bank of London and Middle East (London), UAE Guidance Financial Group USA, iHilal Financial Services (Dubai), Mashreqbank (Dubai), DCD Financial Group UK, Future Growth Equity Fund, South Africa and many others. Dr Imran holds LLB, MPhil and PhD degrees in Islamic Finance from Karachi University as well as Alimiyyah and Takhassus degrees in Islamic Jurisprudence from Jamia Darul Uloom Karachi. Dr Imran is the son of the internationally reputable Shari’a Scholar Justice Muhammad Taqi Usmani.

islamic banking and finance solutions

Al Khalij Commercial Bank was granted the Islamic Banking Branch license in 2008, and has since been involved in landmark Islamic transactions as follows :

• Barwa Real Estate Co. Murabha – mandated as Lead Arranger for US$700 million Murabha financing in January 2008.
• Al Mana Sukuk – mandated as Joint Lead Manager for an AED600 million issue for the Almana Group, one of the largest business houses in Qatar in May 2008. This is one of the first non-USD corporate sukuks issued from Qatar and is listed on the DIFX, marking the first step in al khaliji's plans to become a leading capital market player in the GCC.

We work closely with our Shariah Advisory Committee in structuring customer solutions according to our customers’ needs. Oftentimes, similar Islamic contracts are utilised, the most common being Murabaha, Mudaraba and Ijarah. The range of solutions for Corporate and Institutional sectors cover the following :

• Working Capital Finance
• Asset Financing
• Equity Financing
• Trade Financing
• Capital Markets

What is murabahah?

A Murabahah transaction is a sale at a disclosed profit. In a murabahah transaction, the bank will purchase an asset from a third party and will sell it to the customer at a disclosed profit with the customer being provided a deferred payment privilege.

What is mudarabah?

A Mudarabah transaction is an investment partnership whereby the Investor will provide the capital and the Manager will manage the investment. In an asset financing situation, the bank shall act as the Rab-ul-Mal or Investor (i.e. financier, capital provider) whilst the customer is the Mudarib or Manager (i.e. entrepreneur). Risk and rewards in the venture are shared on a pre-agreed Profit Sharing Ratio. In the case of a profit, both parties will receive their pre-agreed share, whilst in the case of a loss, the Investor shall bear the loss of capital while the mudarib bears the loss of time and effort.

What is ijarah?

An Ijara is an Islamic lease whereby the bank will purchase an asset and lease it to the customer for fixed monthly rental payment. The bank may provide the customer with an option to purchase the asset at the maturity of the lease if the customer prefers.

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