Trade Finance

Islamic banking Department of Al Masraf provides a broad spectrum of Islamic Banking solutions to large corporations, small & medium enterprises and government entities. Our aim is to be a supportive partner in your business by offering you fully Shari’a compliant financial solutions through a variety of convenient and progressive banking channels.
We deliver seamless tailored solutions for those requiring prompt and efficient trade services, and we ensure your business transactions are executed without delays. And since Al Masraf is a well-known bank and one of the pioneers in trade finance products in the region, our sales and service outlets have the infrastructure in place to ensure that your trade finance requirements are processed accurately and in the fastest possible time. Our trade professionals look forward to sharing with you their trade related knowledge.

Under Islamic Banking Trade Finance products we do offer the following range of solutions to help customers in trade transactions:

Features and Benefits

Dedicated Relationship Manager to focus on your business needs
Flexible Finance Tenure
Large finance amount that suits your business needs
Competitive profit rate and no hidden charges
Reasonable and acceptable collateral requirements
Finance available for new and used vehicles
Low Processing fee for due diligence and documentation
Quick processing
24/7 access to your account through Al Masraf Corporate Online Banking

Eligibility

Establishments, LLCs, Sole Proprietorships, Partnerships and Branches of Foreign Companies etc. that are legally incorporated in the UAE can apply for this service.

Documentation

Copy of valid Trade License
Copy of Commercial Registry
Copy of Partnership agreement (in case of partnerships)
Copy of valid passport of partners (in case of partnerships)
Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
Copy of title deed
Last 2 years’ financials

*Requirement may be lowered if additional security is provided.

Murabaha Letter of Credit (Documentary Credit): Sight and Usance

A documentary credit issued by Al Masraf Islamic Banking provides comfort and security to both the buyer and supplier by helping to mitigate the inherent risks of international trade
Where the Bank is acting as “Applicant” as well as “Issuer” of the document. All documents pertaining to the Documentary Credit are issued in the Bank’s name, and Bank shall be responsible not only for documents but also specification and condition of the goods.

Wakala Murabaha Letter of Credit (Documentary Credit): Sight and Usance

A written undertaking was given by a bank to a seller (local/ foreign) at your request in making payment to the seller on your behalf at a determinable future date. Based on the Islamic concept of wakala; where it is an agency relationship and one party is appointed an agent on behalf of the other party.

Inward Bills for Collection is the handling of inward documents (domestic and foreign) received from the remitting Bank and/ or Seller for presentation to the buyer for payment and/ or acceptance of Bills of Exchange for payment at a future date.

Trade Settlement by Documentary Collections that helps to provide peace of mind to both importer and exporter by mitigating their trade risks

This product provides you the working capital to finance the purchase/ importation of goods, raw materials, machinery, etc for your business operations. Based on the Islamic concept of Murabaha, where it is known as mark-up sale financing, it is a contract entered between buyer (the Customer) and seller (Al Masraf), where the Bank will sell goods on deferred term to the buyer at an agreed selling price that comprises the Bank’s purchase price and profit margin. The Bank will pay the cost price of goods direct to the supplier and the customer will settle the Bank’s selling price on lump sum basis at an agreed date in the future.

Shipping Guarantee is an indemnity given by the customer, countersigned by the Bank, to a shipping company or its agent to allow the shipping company to release the merchandise to the consignee named in the Bill of Lading without the presentation of the original Bill of Lading.

Similar to the bank guarantee, it is based on the Islamic concept of Kafalah where it is a contract of guarantee or surety given by one party to discharge the liability of a third party in the case of default.

Based on Kafalah concept; this is a facility whereby the Bank undertakes to pay the beneficiary the agreed sum, if the applicant fail or default in fulfillment of his obligations under the terms and conditions of the contract or agreement with the beneficiary.

A guarantee is issued by Al Masraf Islamic Banking (the guarantor) on behalf of its customer (the applicant) in favor of a third party (the beneficiary), for fulfillment of specifically defined contractual and/or financial obligations of the applicant. If the obligations are not fulfilled by the applicant, the guarantor will pay up to a certain amount to the beneficiary on non-performance of the obligations by the applicant.