Produits Financiers Islamique


A leasing contract in which the bank buys an item for a customer, and then leases it for a given period of time.


Similar to Ijara, but includes a commitment to purchase at the end of the contract.


Contract in which the manufacturer accepts to manufacture and deliver a good for a given price and on a given future date.


Investment partnership. Financing technique used by Islamic banks whereby the bank provides all the capital, while the other party runs the project. The profit is distributed between the two parties at a ratio that should be determined at the time the contract is signed. The owner of the capital bears the financial loss; the managing party’s loss is the opportunity cost of their own work force that fails to generate an income surplus.


a form of financing that allows the customer to make a purchase without contracting a loan with interest. The bank buys an item and then sells it to the customer at the cost price plus a profit margin set by agreement between the two parties. The Mourabaha contract especially states the nature of the goods, the cost price, the exchange rates, the cost price, the profit margin, the sales price as well as the delivery and payment conditions. Mourabaha can cover internal trade or external trade transactions.


An investment partnership, whereby the bank and the customer go in together to finance a transaction and jointly assume the risk at a rate proportionate to their participation. The bank and the customer share the profits or bear the losses following a rate they have previously agreed to.

Qard Hasan

Loan without interest or profit. This is more of a subsidy than a business loan. This technique is hardly used by business enterprises. However, it can be used in specific cases (where an individual or a business faces difficulties, or when one wishes to promote the development of emerging sectors).


A contract with prepayment of goods for subsequent delivery. No sale is possible unless goods are available at the contracting time. But this type of sale is an exception. It is authorized on condition that the goods are stated clearly and the delivery date is set. This type of sale generally covers physical assets, excluding goal and silver, which are considered as monetary value.


Similar to a bond backed by an asset, Sukuk is a treasury bond that gives investors a share of the property in an underlying asset and, in so doing, earns income for them. The issuing entity is required to identify the existing shares to sell to the Sukuk investors by transfer to a special purpose entity. The investors then enjoy the usufruct of these assets according to their investment. They generally bear the risk of the issuer’s credit rather than the actual risk tied to the assets of the special purpose entity. The Sukuk may be listed and rated on the basis of the target market, but this is not mandatory. Sukuk Is issued generally by business enterprises, some financial institutions and sovereign states.


Islamic Insurance. This takes the form of cooperative insurance with a pooling of funds based on the principle of mutual assistance. In the Takaful system, the members are both providers and beneficiaries of insurance services. Islam prohibits traditional insurance, for this includes several unlawful elements, such as Gharar and Riba.


This is the reverse form of Murabaha. It is a financing technique to obtain funding through tranche payments for property held by the bank. The applicants then authorize the bank to act on their behalf and sell their share of the property to a third party in a cash sale, and then to deposit the proceeds of the sale in their account.


The capital invested belongs to the customer, who appoints an Islamic bank to serve as an agent, and pays a commission for expertise to cover the bank’s funds management services.