Alizz announces new range of commercial financing solutions

MUSCAT: Alizz Islamic Bank has unveiled a wide variety of Shariacompliant commercial financing products for salaried individuals. Further offering a number of benefits and special features designed to meet the expectations of its business clients.

Customers who avail the Alizz Islamic Bank commercial financing solutions have the advantage of purchasing different goods, including equipment, machinery, vehicles or even property through Murabaha, Ijarah or Forward Ijarah options, says a press release.

Sharia-based Murabaha allows customers to buy equipment and goods at competitive prices whereas Ijarah solutions help businessmen purchase land, and Forward Ijarah helps them construct facili- ties at competitive prices.

Under Murabaha, the bank will purchase the asset from the seller based on the customer’s request and sell it to the customer at cost plus the agreed profit rate, concluding the Murabaha sale contract. The most important feature of this product is that the customer will know the profit mark-up and instalments at the time of signing the deal. Another feature is that the Murabaha cost remains unchanged throughout the term. Moreover, the easy procedures allow the customer to own the goods immediately.

Under Ijarah, the customer will be given the right to utilize or lease the property for a specific period while the bank remains the property owner. The bank will buy the property from the developer or seller and lease it out to the customer with a promise to sell it at the end of the lease term.

In Forward Ijarah, the property is acquired by Alizz Islamic Bank under Istisna sale contract with a developer upon the customer’s promise to lease. Istisna refers to a kind of sale where a commodity or property transaction takes place before it comes into existence. This essentially means that a company is told to manufacture a specific commodity or build a property for the purchaser.

Once the construction process is completed, the property will be delivered to the customer based on rental conditions. At the end of the lease term (or upon maturity date) and once the obligations stated in the Forward Ijarah contract have been fulfilled, the bank will transfer the ownership of property to the customer at a nominal sale price on the basis of a separate sale contract.

The financing options come with a world of features and benefits. They are available to Omanis working in government or semigovernment agencies as well as those working in the private sector. The minimum salary is OMR500 for government and semi-govern- ment employees and OMR750 for those working in the private sector. The application procedure is easy and fast with simple documentation requirements.

The minimum age of applicants seeking financing should be 21 years and maximum 60. Murabahabased financing options for equipment and vehicles are available from OMR5,000 to OMR100,000. Ijarah-based financing options start from OMR50,000 to maximum OMR700,000. The term of Murabaha-based finance contracts is seven years while that of Ijarah is nine years (excluding the 12-month construction period). An applicant can get up to 80 per cent of finance for the costs of equipment, vehicles and property, and 100 per cent of the cost of commodities.