Murabaha: Under the Murabaha principle, the bank will at the customer's request purchase the asset from the seller, and then sell the same to the customer at an agreed profit. The advantage is that you know the bank's profit and installment at the time of signing the deal, and it never changes throughout the financing term. This arrangement allows for immediate possession & ownership of the asset.
Ijarah Muntahia Bitamleek: Our Commercial Finance Ijarah is based on the Sharia principle of Ijarah. In this contract, the customer is given the right to use or lease the property for a period of time' the owner retains the ownership of the assets. Under Ijarah commercial financing, Alizz Islamic Bank buys the property from the developer/seller and leases it out to the customer with a promise to sell at the end of the lease term.
Forward Ijarah: based on the Sharia principle of Forward Ijarah, the property, which does not exist at the time of signing the Forward Ijarah Contract, may be acquired by the bank under Istisna Sale Contract with a developer/contractor. Upon completion of construction, the property is delivered to the customer as per the terms of the lease agreement. At the end of the lease term (i.e. on maturity), provided all obligations under Forward Ijarah Contract are met, the bank will transfer the ownership of the property to the customer for a token sale price under a separate sale contract. Customer can choose to start rent payment either advance rental during construction or rent after the delivery of property.