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Islamic Products
Major Islamic Banking Business of KIB
Kurdistan International Bank for Investment & Development (KIB) with it's main branch In Erbil and it's branches in Baghdad ,Erbil Airport and Ibrahim Al-khaleel border cross KIB offers a wide range of Islamic banking products and services which will develop rapidly within the few next months. 
Murabaha (Profit – sharing) Murabaha is a contract wherein a bank purchases, at the request of a customer, a specified commodity item required by the customer and then sells it to him/her at a mutually agreed upon market-up price on deferred payment basis, a Murabaha is a letter of credit ( L/C) through which the bank itself import the item required by the customer and then sells it to him/her at an agreed price either at sight or on different payment basis. Murabaha is mainly applicable to trade and investment in various projects. Musharakah (Joint ventures) A Musharakah is a contract whereby the bank and customer pool resources to start and/or operate a business venture; the bank and the customer agree to manage the business venture according to contract terms . The bank and the customer share the profit generated by the business venture either in their per-rat capital investment or in a different ratio mutually agreed between them, in the case of a loss, the loss is always born by the bank and the customer in the ratio of their capital contribution or as agreed upon in the contract. Even if a partner of Musharakah agrees to waives his/her rights to the profits in favor of the bank, a loss has still to be shared according to the contract . Musharaka is applicable to all types of joint ventures industrial, agriculture infrastructure projects and shareholding in other banks and companies. Mudarabah (Financing) A Mudarabah is a contract where the bank provides the finance while the customer provides the entrepreneurship i.e. the professional, managerial and technical know-how for starting and/or operating a business; it can also be a contract whereby an investor entrust its funds with the bank to invest the funds in profitable ventures/business, the owner of the capital is called the (Rab-ul-amal) while the entrepreneur i.e. the party that is offering the professional, managerial and technical know-how is called the Mudarabah. In Mudarabah contract, profits are shared in a pre-agreed ratio but in the case of a genuine loss Rab-ul-amal bears the whole loss while the Mudarab doesn't get any profit for his/her efforts Mudrabah is applicable to various types and investment including stock exchange . Ijara (Renting) Ijara is a contract whereby the bank leases or rents moveable or immoveable items to a customer against a fixed charge; the bank purchases the item at the request of the customer and then leases it to the customer. Usually, the customer has the option to purchase the item at the end of the lease period at a pre-agreed price; a lease contact is a binding contract and may not be cancelled before the end of the lease period Ijara is applicable to housing complexes, care & machinery purchasing etc. Istisnaa (Industrial - Financing) Istisnaa is a contract where the bank covers the funding such as a building a factory, act, on behalf of a customer and upon completion sells it to the customer who can either pay for it later as a lump um amount or in installment. This is applicable in industrial, real estate, Agricultural, infrastructure communication projects…etc. Assets and Liquidity Management This involves customers' funds (special for Institutions) in rewarding products whilst preserving liquidity for in a form compatible with Sharia principles. KIB product range include services that cater for those seeking short term maturities in the from of low risk investment. This service is designed to provide the customer a steady rate of return while providing liquid funds at short notice. Other Islamic Modes of Finance There are a number of other Islamic product such as bia al salam, bai bitthamen ajil…etc (types of Islamic forwarding sells ) and variations of the activities described before which comply with the sharia principles. |
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