Islamic Finance

The Al Salamah Islamic Finance Unit, carrying out activities independent of LB Finance PLC, offers a range of financial services including fixed and flexed investment accounts, trade financing and leasing. We provide you total security along with an absolute peace of mind.

Products

Ijarah Logo

The Ijarah scheme is unique, and specially designed and tailor-made to address all your leasing needs. We’ll purchase the motor vehicle for you in keeping with your choice and style and let you use it over a mutually agreed lease period and gift it at the end of it, provided all your commitments have been met on time. What’s more; we will comprehensively insure it, bear the cost of all major repairs, leaving you only the small hassle of routine maintenance. This way, we take a major part of your risk away, giving you the freedom to enjoy the benefits of our Ijarah.

Murabaha Logo

The Murabaha principal is used by most Islamic Banks and Financial Institutions worldwide as a convenient mode of finance for most types of asset-based financing: vehicle/machinery financing, trade finance, import and export etc.

In a Murabaha transaction, the seller and the buyer reach an agreement to trade a specific commodity with a certain profit added to the cost. It is compulsory on the seller to disclose the actual cost of the commodity and his/her profit mark-up, which can be a specific amount or a percentage of the cost. Both parties should reach an agreement on this matter beforehand.

Deferred settlement, either as a lump-sum full payment or in monthly instalments, is also allowed in Murabaha financing.

Mudharabah Logo

Mudharabah is a common equity-based Islamic mode of investment where profits are shared among investors on a pre-determined ratio. The parties involved are referred to as the Rabbul Mal (The Financial Provider) and the Mudharib (Fund Manager).

In a Mudharabah partnership, the Mudharib (Al Salamah) manages and prudently invests the Mudharabah Fund which consist investments collected from a pool of Arbaabul Mal (investors). The Rabbul Mal is rewarded for his/her risk and the Mudharib for their entrepreneurship.

In a rare and unlikely event of a loss, unless it is resulted from the negligence of the Mudharib, the entire loss will be absorbed by the Mudharabah Fund prior to the distribution of any profits.

The Sharia Supervisory Council will strictly monitor the investments from the Mudharabah Fund to ensure total sharia compliance.

Mudharabah Profit Sharing Ratios (PSR) for October 2016

Period

PSR (Customer/LBF)

Mudharabah 01 Month Fixed Deposit – Profit Paid at Maturity 35:65
Mudharabah 03 Months Fixed Deposit – Profit Paid at Maturity 38:62
Mudharabah 06 Months Fixed Deposit – Profit Paid at Maturity 41:59
Mudharabah 06 Months Fixed Deposit – Profit Paid Monthly 37:63
Mudharabah 12 Months Fixed Deposit – Profit Paid at Maturity 43:57
Mudharabah 12 Months Fixed Deposit – Profit Paid Monthly 39:61
Mudharabah Savings Account 30:70

 

Mudharabah Investments – Previously Paid Profit Rates

01 Month (Maturity) Fixed Deposit 03 Months (Maturity) Fixed Deposit 06 Months (Maturity) Fixed Deposit 06 Months (Monthly) Fixed Deposit 12 Months (Maturity) Fixed Deposit 12Months (Monthly) Fixed Deposit Savings Account
May
2015
6.07% 6.60% 7.13% 6.07% 7.92% 6.60% 4.49%
June 2015 5.54% 6.02% 6.50% 5.54% 7.23% 6.02% 4.95%
July 2015 5.03% 6.04% 6.37% 5.36% 7.38% 6.71% 4.99%
August 2015 5.15% 6.18% 6.53% 5.50% 7.56% 6.87% 5.15%
September 2015 5.18% 6.22% 6.56% 5.53% 7.60% 6.91% 5.50%
October 2105 5.57% 6.06% 6.54% 5.57% 9.33% 8.36% 6.03%
November 2015 5.57% 5.97% 6.57% 5.57% 9.55% 8.56% 5.97%
December 2015 5.59% 6.07% 6.56% 5.59% 9.48% 8.50% 6.07%
January 2016 5.52% 6.08% 6.63% 5.52% 9.39% 8.56% 6.08%
February 2016 5.48% 6.01% 6.53% 5.48% 9.66% 8.62% 6.01%
March 2016 6.93% 7.46% 8.52% 6.93% 9.59% 8.52% 6.08%
April 2016 7.04% 7.50% 8.44% 7.04% 9.38% 8.44% 6.12%
May 2016 7.60% 8.62% 9.63% 7.60% 10.65% 9.63% 7.08%
June 2016 7.450% 8.45% 9.44% 7.45% 10.43% 9.44% 7.45%
July 2016 8.05% 9.12% 10.20% 9.12% 11.27% 10.20% 8.03%
August 2016 8.86% 9.04% 10.48% 8.86% 11.01% 9.94% 7.52%
September 2016 9.05% 9.83% 10.60% 9.05% 11.12% 10.08% 7.76%