SABB designed the new product, which is the first of its kind to specifically protect corporate borrowers, since they are priced in accordance with fluctuating market trends throughout the term of finance.
The rate for borrowing through Murabaha is to be fixed under the mechanism of this product and at the same time customer's funds are invested in a counter Murabaha. This will result in full protection of the customer against price fluctuations, whereby an Islamic loan is extended and an Islamic price protection is provided.
Commenting on the occasion, Managing Director Mr. Geoff Calvert said: "The product is the first of its kind in the market and reflects SABB's commitment to offer solutions that are compatible with Shari'a principles and meet customers needs."
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The Saudi British Bank (SABB) launches the first Islamic product for protecting borrowers
- Saudi Arabia: Monday, July 25 - 2005 at 11:18
- PRESS RELEASE
With the growth in Islamic finance services through Murabaha, Musharaka and Ijara concepts, SABB has innovated a new Islamic product that is compatible with Shariah principles and approved by the bank's Shariah Supervisory Committee for protecting borrowers against market price fluctuations.
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Log in to request more information from Saudi British Bank (SABB)
Posted by Anne-Birte Stensgaard, Senior News EditorMonday, July 25 - 2005 at 11:18 UAE local time (GMT+4)
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