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

• 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.​
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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.

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

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.

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.

‘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.

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

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.

• 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.

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 team of highly qualified experts, well-versed in Islamic trade services, are best placed to understand customers’ unique needs and provide effective shari’a compliant solutions to help take the business forward. whether it is bank guarantees or letters of credit, meethaq is ready to go an extra mile.

Guarantee is an agreement whereby the guarantor assumes the responsibility to fulfill the other person’s liability in case of failure by the other person in fulfilling his/her liability. The bank provides the guarantee on kafalah basis.

Kafalah means to add an obligation to an existing one, in respect of a demand for something. this may relate to a person, finance or act (performance).

• Performance guarantees
• Bid bonds
• Guarantee for advance payment mobilization
• Security deposit guarantees
• Open-ended guarantee
• Guarantees expressed in foreign currency

Letter of credit is a document issued by a financial institution which normally provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back or revolving but is most commonly irrevocable / confirmed) to a beneficiary against complying documents as stated in the letter of credit.

Meethaq provides funded (where the customer needs funds to pay for the imported goods) and non-funded (where the customer wished to utilize its own funds for purchase of goods) letters of credit. in addition, meethaq also provides export bill collection facility for exporters.​