Overdrafts and Loans
For your working capital needs, we offer flexibly negotiated Overdraft facilities and Loans.
We also provide medium term loans to finance projects and expansion, equipment finance and capital expenditure. The loan products are flexible where they can be repaid in instalments or in bullet payments depending on your cash flow projections and funding gaps.
SAB offers contract financing facilities to medium & large contractors on a ‘Project specific’ basis covering mobilisation loans, Tender, Performance , Retention bonds, Advance Payment Guarantees as well as trade finance facilities which are “tailor made” to fit specific needs.
Murabaha Liquidity Finance
This unique product provides SAB business clients with the liquidity they require in full compliance with Shariah principles. Operating on the Al Tawrruq concept, the bank buys metals on the open market, then sells them to the customer at a deferred payment rate. Once the customer owns the metals, he/she then authorises the bank to sell the metal and credit his account.
Murabaha Liquidity Finance (Tawarruq) is a solution to fund all your cash needs either for long or short term. This transaction is a murabaha transaction that leads to tawarruq, where SAB purchases metal from the open market and sells it on deferred payment basis to the clients. SAB then sell the metal on behalf of the client to the open market and credit the proceeds to the client's account.
Ijara is a distinctive solution, where SAB buys capital equipment or property and leases it out under rental installments plans to Clients. Under the Ijara with the Promise to Transfer Ownership, the original position of the asset shall be the sole property of the lessor (SAB), and after the expiry of the lease period the lessor transfers the asset to the Client either as a gift, or through a sale.
Musharaka is a partnership between SAB and the business client to fund a new project or to provide additional funds for an existing one. It conforms to the underlying partnership principles of sharing the profit and risk. It is normally of limited duration, with profits divided on a pre-determined basis, and losses shared in proportion to the capital contribution.