A new success for UBAF alongside ITFC


UBAF, a long-standing partner of the International Islamic Trade Finance Corporation (ITFC), recently participated in an Islamic financing project for the Egyptian government. This major operation mainly finances imports of basic necessities for a total amount of USD 1,13 billion. UBAF, with its expertise in supporting and securing trade flows, contributed USD 80 million.

Financement & Financements Islamiques


ISLAMIC FINANCE

  1. Islamic Finance

  2. U.B.A.F. has acquired solid expertise in Islamic finance with more than 20 years of experience in this field.

    It has been a pioneer bank in Europe to develop this activity with the aim to assist its clients (Islamic banks) in the Arab world from France.

    U.B.A.F. has designated the Sharyah Review Bureau as its Islamic Advisor in order to assure its clients that U.B.A.F.’s Islamic products are structured and implemented according to Sharia principles as well as our regulators’ and internal compliance’s requirements.

    U.B.A.F.’s Islamic team, with its strong expertise, will be happy to assist you in finding solutions for your queries in terms of Islamic products linked to trade finance (the core business of U.B.A.F.’s activity).

    Contact :Fadi NEHME – Head of Islamic Finance fadi.nehme@ubaf.fr

  3. Islamic Advisor

  4. The Shariyah Review Bureau (SRB) is the corporate world’s leading Sharia Advisor with a scholarly presence in more than 12 countries from the US, Europe, Africa, GCC and Asia. It provides professional Sharia advisory and Sharia audit services to public and private businesses, including commercial and corporate debt, Sukuks and Islamic equity markets, initial public offerings screening and investment banking practice, energy firms and information providers.

  5. Glossary

  6. Murabaha

    The Murabaha is a sale contract at breakeven cost with an agreed upon margin by the buyer and the seller. In the latter case, the intermediary pays cash for the merchandise from the supplier and then resells it to the end-buyer in return for a margin with a deferred payment.

    Bai al Salam

    The Bai al Salam is a contract of sale with deferred delivery. The buyer pays the seller in cash at an agreed upon price with the promise that the seller will deliver the goods in the future. This contract applies to agricultural goods and manufactured products, whose quality and quantity may be clearly specified.

    Ijara

    The Ijara / Ijara wa-iqtina (leasing) is a medium to long term financial leasing contract. The bank purchases an asset that it leases to a business for a certain period of time. The cost of the lease is spread out during this period. At the end, the lessee can exercise an option to purchase the asset. This product concerns mainly the road and air transportation sectors, as well as real estate and machinery.

    Istisna

    The Istisna is a contract where an Islamic bank finances the working capital of a business, especially the financing of engineering work and raw materials used for the manufacture of products to be sold. This contract can also include the financing of goods such as electricity and gas, which are not taken into account by the leasing (Ijara) contracts.

    Mudaraba

    This term refers to the contract agreed upon between one or more investors who provide capital (rab el mal) and an entrepreneur who performs the work necessary for using these funds (mudareb). According to this definition, the Islamic bank can as mudareb if its role consists of investing capital on behalf of investors, or as rab el mal if it participates in a transaction organized by another bank acting as mudareb. In the former case, the action of the mudareb bank occurs without recourse, except in case of negligence. The risk is borne by the investors and the profit is shared between the investors and the mudareb according to a predetermined formula.

    Musharaka

    The Musharaka (active partnership) is a contract between two or more parties for the financing of a project. Profits and losses are distributed pro-rata based on the respective capital contributions. This product involves mainly commercial and long-term production activities.


OTHER FINANCING

TRADE FINANCE

Your need
You are Exporter and you wish:
  • To get facility to finance goods (and if needed freight),
  • You are Issuing Bank and you wish:
  • To obtain a deferred payment.
  • Our offer

    For each of your request, U.B.A.F. would be ready to propose you the following facilities in regard of your contracts:

    • Financing backed to export documentary collection processed by U.B.A.F.,
    • Financing backed to export letter of credit confirmed by U.B.A.F.,
    • Post-financing according to the needs of our bank counterparties,
    • Bridge financing to cover delays between import and export sides.

    By choosing U.B.A.F., you benefit from recognized skills to meet your needs.