Eligibility

• Meet your demand for raw materials by obtaining Shariah-compliant financing based on Murabahah.
• City Islamic Murabahah Local Purchase is based on Islamic sale contract Murabahah (Cost plus profit). In this contract, customer requests bank to purchase a specific material or product from a supplier. Bank will buy the commodity from a supplier and will sell it to the customer with profit. The bank will disclose the cost and profit of the commodity.

Islamic Bai-Salam Working Capital Finance

• Meet your working capital needs for production in Shariah-compliant way.
• City Islamic Bai-Salam Working Capital Finance is your Riba-free banking solution which accommodates the working capital requirements of homogenous commodities.
• It is based on Islamic sale contract named Bai-al-Salam (Advance purchase). Here the bank will buy specific goods from the customer by paying in advance and the customer will produce the goods and deliver them in the agreed future date.

Shariah Pronouncement

All praise to Allah and May peace and blessings be upon his messenger, his family, his companions and all followers of his guidance.

Shariah Structure of Musharakah Financing:

• This is a partnership contract named Restricted Musharakah.
• Bank will participate in the equity of a specific project or venture.
• Bank will not participate in the whole equity of the business.
• The customer will manage the venture or project.
• The customer is required to declare minimum unit sales revenue and cost.
• Profit will be shared based on pre-agreed profit sharing ratio (PSR)
• Any loss will be borne by all parties according to capital ratio.

Shariah Structure of the product Murabahah Local Purchase

• This is a sale contract named Murabahah.
• Bank buys the product(s) for customer as per request and specification
• Bank can take undertaking from the customer to buy the product(s).
• Bank can appoint the customer an agent to by the product(s) on its behalf.
• Bank must disclose the cost and mark-up to the customer during sale.

Shariah Structure of Bai-Salam Financing

• This is sale contract named Bai-Salam.
• Customer discloses details like quality, quantity, price and time of delivery about the product it wants to sell.
• Bank buys the product from the customer by paying the price in advance.
• The price that the bank pays is less than the spot price.
• Bank enters into another contract where bank assigns customer as an agent to sell the products in the market on its behalf.

Approval of Shariah Supervisory Committee

The Shariah Supervisory Committee of City Bank has reviewed the documentations, related contracts and processes of the following products: City Islamic Musharakah Financing, Murabahah Local Purchase, and Bai-Salam Financing.

Therefore, We the “Shariah Supervisory Committee” for City Bank confirm that in our opinion the “City Islamic Musharakah Financing, Murabahah Local Purchase, and Bai-Salam Financing” are in accordance with the respective Musharakah Financing, Murabahah Local Purchase, and Bai-Salam Working Capital Finance principles of Islamic finance and hence we allow the bank to provide this product to its customer.

And Allah Knows Best.

_____________________

Dr. Md. Anwar Hosain Molla
Chairman

Shariah Supervisory Committee, City Bank

This certificate was signed on Tuesday 11th May 2021 Fatwa