Meethaq Working Capital Financing

Focus on the growth of your business with meethaq’s working capital financing, the most-customer friendly finance plan for buying local or imported equipment or goods

Features:
  • Shari'a compliant solutions as per customers’ Islamic beliefs
  • Financing up to 80% of the goods’ value
  • Competitive rates, lower payments and longer financing tenure of up to 5 years
  • Easy, convenient and quick approval process with minimal documentation
  • Flexibility to avail and service the finance through the largest integrated branch network offered by meethaq in Oman

FAQs:

How is meethaq working capital financing shari’a compliant?

Meethaq working capital finance product works under the principle of murabaha.

How does meethaq working capital financing work?

  • Under murabaha for goods, the bank and the customer sign an agency agreement whereby the bank appoints the customer as its agent for purchasing the commodity on its behalf.
  • The customer purchases the commodity on behalf of the bank and takes possession of the commodity as the agent of the bank.
  • Thereafter, the customer informs the bank that he/she has purchased the commodity and simultaneously makes an offer to purchase it from the bank.
  • The bank accepts the offer and the sale is concluded,whereby ownership as well as risk is transferred to the customer.​

Meethaq Term & Project Finance

Avail a wide range of attractive and flexible term and project finance solutions from meethaq financial experts, who can tailor the plans to meet your most complex needs

Features:
  • Shari'a compliant solutions as per customers’ Islamic beliefs
  • Higher finance limit
  • Competitive rates, lower payments and longer financing tenure of up to 5 years
  • Convenient approval process
  • Flexibility to avail and service the finance through the largest integrated branch network offered by meethaq in Oman

FAQs:

Who can avail meethaq’s term and project finance?

Large corporate organizations, small-and-medium enterprises and entrepreneurs, who are looking for finance to build an industrial unit or acquire an office building or expand operations, can avail the finance.

What products are offered under meethaq term and project finance?

  • Ijarah financing
  • Diminishing musharaka for real estate
  • Project finance and sukuk

What is ijarah financing?

Ijarah is a leasing agreement, whereby the Islamic bank buys an asset and then leases its usufruct over a specified period to the customer against specified and lawful return or consideration.

How does ijarah financing work?

The ‘lessor’ provides the asset for use by the customer against rental; the ‘lessee’ is entitled to use the asset against payment of the agreed-upon rental, only for the purpose specified in the agreement. this can be understood as ‘the financial lease’, where the client at the maturity acquires the asset after paying the cost or the base amount along with the usufruct’s rent. each installment consists of 2 elements - fixed element to meet the original cost and the rent element to meet the leasing of the asset.

What is an operational lease?

‘The operational lease’ is when the bank owns an asset and leases its usufruct to the client without an agreement of transferring the title to the client at maturity.

For what purposes can ijarah financing be used?

Ijarah can be used to finance plant and machinery and equipment, etc.

What is diminishing musharaka for real estate?

Diminishing musharaka is a contract, where a party after participation in ownership of an asset (generally property or equipment) can liquidate his/her investment from the asset or the ongoing business.

How does diminishing musharaka for real estate work?

  • Under this mode of financing, the bank enters into an agreement with the customer for investing funds to purchase an asset under joint ownership and the asset is placed in possession of the customer to utilize for generating or enhancing income.
  • The customer leases the bank’s share in the asset, and pays a specific amount in proportion to the share of investment in joint ownership as rental to the bank for utilizing the asset.
  • In order to obtain the entire ownership of the asset, the customer simultaneously purchases the share of the bank, divided into units, through payment of periodical installments for the cost of units, according to the agreed terms.
  • The gradual reduction of investment of the bank correspondingly increases the share of the customer and so rental is reduced in proportion to residual amount of bank’s investment after each payment.
  • After the final settlement, the entire ownership of the asset will be transferred to the customer.

What is project finance and sukuk?

Project finance transactions involve complex structures that have to comply with not only the traditional project finance principles but also shari'a requirements. this process requires integration of shari'a compliant financial solutions with the various project finance parameters. the bank also serves various projects that require shari'a structuring using different modes of finance including diminishing musharaka and ijarah. the bank also acts as lead advisor/arranger for various types of sukuk issues in the region.​​​

Meethaq Trade Services

Meet your international and domestic trade needs with a suite of innovative and customized trade services’ solutions from meethaq trade services

Features:
  • Shari'a compliant solutions as per customers’ Islamic beliefs
  • Higher credit limit
  • Flexibility to avail the service through the largest integrated branch network offered by meethaq in Oman

FAQs: