The Principles of Islamic Finance
Discover the ethical foundations and contractual formulas that govern all of our banking activities and products.
A Bank at the Service of the Real Economy
Islamic finance rests on principles of fairness, transparency and backing by tangible assets. It formally prohibits usurious interest (Riba), excessive speculation (Gharar & Maysir) and the financing of unlawful activities.
Prohibition of Riba
Money is not a commodity that generates money by itself. Gains must come solely from lawful trade or from sharing the profits of productive activity.
Backed by Real Assets
Every financial transaction finances a clearly identified and verifiable movable asset, property or service in the real economy.
Risk & Profit Sharing
A genuine partnership logic (3P) between the bank and its clients, based on loyalty, shared responsibility and contractual fairness.
Islamic Financing Instruments
MOURABAHA Sale
This is an Islamic financing operation whereby Al Baraka Bank Tunisie acquires specific movable or immovable property or goods, at the request of its client acting as the ordering party, from a third party, in order to resell them to the client at a price equal to its acquisition cost plus a profit margin fixed in advance, to be settled within the agreed timeframe.
Compliant with AAOIFI and CBT standards
Lease-to-Own Financing (IJARA WA IKTINA)
This is an operation whereby Al Baraka Bank Tunisie acquires and takes ownership of equipment, materials or immovable property at the request of its client, in order to lease it for professional use in exchange for rent payable within the agreed timeframe. In addition, the client benefits from the option to acquire the leased asset during or at the end of the leasing period.
Compliant with AAOIFI and CBT standards
MOUCHARAKA Equity Partnership
Al Baraka Bank Tunisie partners with its client to build up capital in order to launch a project (industrial, agricultural, commercial) or finance the execution of a specific contract, so as to jointly generate profits. The partners share the results achieved in proportion to each party’s contribution to the capital.
Compliant with AAOIFI and CBT standards
MOUDHARABA
Al Baraka Bank Tunisie provides financial capital to its client, who undertakes to mobilize and invest it across various economic sectors based on their skills and qualifications, without contributing personal funds, in order to generate profits shared according to an agreed contractual ratio.
Compliant with AAOIFI and CBT standards
MOUSSAWAMA Sale
Al Baraka Bank purchases clearly defined services (tourist travel, academic tuition, continuing training courses, medical expenses) at the request of its client, in order to resell them at a sale price fixed in advance and settled in installments.
Compliant with AAOIFI and CBT standards