alhilal Islamic banking

alhilal Islamic banking

Al Hilal Islamic Banking Services (the ‘Bank’) segments the market of Oman for its business into the following:

1. Deposits Side

  • Investors/Depositors
    • Giving opportunity to savers Sharia compliant investment avenues to invest with the Bank and earn competitive returns.
    • The target market is all entities such as individuals, companies, firms, societies, government organizations, statutory bodies, public and private institutions and etc.
    • The Bank has Savings and Investment Term Deposit Accounts.
    • By investing in the Bank’s savings account the depositor (Rabb ul-Mal) authorized the Bank (Mudarib) to invest his/her funds under the unrestricted Mudaraba contract. The Bank invests these deposits in its Mudaraba pool along with other deposits and the equity. The profit on the Mudarabah pool is distributed amongst the investors, taking into consideration the tenor, amount of the depot and profit payment frequency for the account.
    • By investing in the Bank’s Investment Term Deposit the depositor (Rabb ul-Mal) authorized the Bank (Mudarib) to invest his/her funds under the unrestricted Mudaraba contract. The Bank invests these deposits in its Mudaraba pool along with other deposits and the equity. The profit on the Mudaraba pool is distributed amongst the investors, taking into consideration the tenor, amount of the depot and profit payment frequency for the account.
  • Deposits who wants to keep their money safe with the Bank
    • The Bank’s current account is a non-remunerative checking account designed for individuals who need to transact frequently though their accounts. It specifically appeals to businessmen and salaried individuals who need to make frequent payments and deposits and hence require a low-cost transactional account.
    • The Bank’s current account is based on the principle of Qard. Where by the depositor allows the Bank to use its capital in a halal way, but the bank does not pay any profit on such account. However, the bank endures safe-custody of all depicted capital and makes the capital available, when it is required.
    • The target market is all entities such as individuals, companies, firms, societies, government organizations, statutory bodies, public and private institutions and etc.

2. Financing Side

On financing side the Bank shall offer innovative products for retail, SME and corporate banking customers. Following are the asset side products and their description:

  • Retail BankingIn retail banking the Bank will offer housing finance, auto finance and credit card to consumer banking customers. The customers can be salaried and business individuals.
  • Housing FinanceThe Bank’s House finance is a Sharia compliant, affordable and hassle free banking product. Al Hilal Islamic is committed to meet customer’s needs in a Sharia complianct manner with excellent services. Our House Finance gives you an opportunity to own a house in halal way that is free from any interest.
  • StructureHouse finance product of the Bank is structured on Murabaha, Musharaka cum Ijara, Ijara Muntahiya Bit Tamleek and Istisna mode of shariah principles.
    Customer interested in house finance approaches the Bank with a request, which could be to finance a ready property, semi constructed, purchase of land with the plans of construction.
  • Ready PropertyThe product is based on the principle of Ijara Muntahiya Bil Tamleek. On the request of the customer, the Bank purchases the property and signs an Ijara agreement with the customer. The customer pays the monthly/periodical rent to the Bank.
    The customer at the end of the rental period purchases the property through a separate sale agreement and by surrendering the security deposit as the residual cost of the property.
  • ConstructionThe Bank signs the Musharaka agreement with the customer. The customer has to make the equity participation either by contributing in the purchase of property or by assigning the land (if the land on which the customer has requested for construction is in his ownership) as a share in partnership. The Bank authorizes the partner to complete the construction work.
    Simultaneously the Bank also signs a forward Ijara with the customer where the customer undertakes to take the same property on rent once completed. The rentals mentioned therein are only indicative. The forward Ijara converts into Ijara once the construction completes. Other processes are same as are in the financing of ready property.
  • Auto FinanceAl Hilal Islamic Auto finance product is based on Murabaha principle. It is Oman’s first interest free auto financing product that is ideally launched for individuals looking for auto financing while avoiding an interest based transaction.

    According to the product the customer submits application for auto finance for his/her desired vehicle. The Bank purchases the vehicle from a third party on spot payment basis and sells to the customer on cost plus profit basis that may be paid by the customer on instalments.

  • Corporate Banking
  • Treasury

Al Hilal Islamic Banking Services

FAQ

FAQ
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Products

Products
Al Hilal Islamic Banking Services segments the market of Oman for its business into the following ...

Sharia Compliant

Sharia Compliant
We know nothing is more important to you than your principles. That’s why we are committed to providing you ...

Sharia Laws & Governance

Sharia Laws & Governance
Shari’a governance is the most important feature of Al Hilal Islamic Banking Services ...

Scholars & Profiles

Scholars & Profiles
Al Hilal Islamic Banking Services Sharia Supervisory Board has some of the most prominent figures from the Isl ...

eBANKING

eBANKING
Shari’a governance is the most important feature of Al Hilal Islamic Banking Services ...