By partnering with you, our Mushraka DCs offer you all the benefits of our Import DCs and also the added assurance that your trade complies fully with Shariah requirements.
You enter into partnership with SABB and request us to purchase goods using a Documentary Credit wherein SABB agrees to sell you its share in the goods at an agreed profit. You are required, at the time of opening DC, to furnish a margin deposit as your Musharaka share. The title of goods imported will be in your name or in third party’s name.
Sight DC: SABB will pay the negotiating bank on receipt of documents and either sell its share in the goods to you for immediate payment (no financing required by you) or on deferred payment terms (if you avail of our Murabaha Import Finance Facility).
Usance DC: SABB will sell its share in the goods to you on deferred payment terms for an agreed period beyond the import bill’s due date (if you avail of our Murabaha Import Finance Facility). If you did not request for financing then on the due date, SABB will pay the negotiating bank and receive payment from you immediately or you may opt for our Tawarruq Import Finance Facility and pay us on a later agreed date.
Documentation: Prior to establishing the DC, the following documents should be in place duly signed by your authorized signatories:
Thereafter, for every shipment under the DC a Murabaha Sale Contract and repayment schedule would be signed.
