How our Islamic Import Financing Work

Murabaha Facility:This is used to settle your liability under a Murabaha or Musharaka Import DC. In either case SABB will sell the goods or its share in the goods to you on deferred payment terms (which may differ from the terms of the underlying imports) at cost plus an agreed profit. SABB will settle the cost of the imports at sight or on due date directly as the case may be.

Tawarruq Facility: This is used to settle your liability for an import where you have full ownership of the goods (SABB Amanah DC) or where ownership has already passed to you (deferred payment Murabaha or Musharaka DCs, SABB Amanah DCs or Documentary Collections). If you have obtained possession of goods through a shipping guarantee then irrespective of the underlying import instrument we will offer you a Tawarruq Facility. The bank sells a base metal to you on deferred payment terms at an agreed profit. The bank then arranges to sell the metal to a broker on your behalf for instant cash. This is used to settle the outstanding import bill.

Documentation: Prior to availing the Islamic import finance facility, the following document should be in place duly signed by your authorized signatories:

• Master Murabaha Agreement

Thereafter, for every transaction a Murabaha Sale Contract and repayment schedule would be signed