Sharia Compliant Finance Solutions

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Find out more about SAB Islamic Finance solutions.

Murabaha Liquidity Finance

SAB Murabaha Liquidity Finance (Tawarruq) solution funds all your short and long term cash needs. In this transaction, SAB purchases a commodity from the open market and sells it on a deferred payment basis to the client then enable the client to sell it for spot value to a third party and credits the proceeds to the client's account. It is the alternative solutions to the conventional Term Loan.

Main Features include:

  • Product approved by SAB Shariah Committee
  • Suitable for short/long term financing
  • Flexible options in executing the Murabaha
  • Simple documentation with quick turnaround time

Islamic Cashline

SAB Islamic Cash Line is an alternative solution to conventional overdrafts. It is the first of its kind in the Saudi market and is structured by combining:

  1. Murabaha Liquidity Finance 
  2. Islamic Call Deposit

The client is granted a Tawarruq which is deposited into an Islamic call deposit account based on Mudarabah that earns monthly profits to pay for outstanding Tawarruq charges. In Mudarabah the client is Rab Almal and SAB is the Mudareb.

Main Features include:

  • Infinite number of transactions without documentation
  • Flexibility to draw funds at your convenience up to an approved limit
  • One time documentation per year
  • Daily netting off process to avoid unnecessary charges
  • Simple documentation with quick turnaround


Ijara is a distinctive solution, where SAB buys equipment, machinery or property and leases it back under rental instalments plans to Clients. 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.

Main Features include:

  • Product approved by SAB Shariah Committee
  • Variable rates linked to a benchmark (SIBOR, LIBOR, etc)
  • Appropriate for Capital Expenditure financing
  • Can be used to lease unfinished/uncompleted assets, which is called "Ijara Mawsofah fe Al Zemah"
  • Simple documentation and quick turnaround time
  • Suitable for medium/long term financing

Leasing and Deferred Sales

The differences between Lease and Deferred Sale (Murabaha)is as follows:

Differences / Product Ijarah Murabaha
Asset Ownership with SAB Ownership with Client
Pricing/Payments Variable/Fixed Fixed
Insurance Fees Paid by SAB Paid by the Client
Loss in Case of Damage (not caused by Client negligence) Borne by SAB Borne by the Client