This is a financing facility to provide cash to the customers. This is done by selling goods or commodities to the customers. Later, the customer appoints the bank as the agent to sell the same goods in the market on its behalf and the sale proceeds are transferred to the customer. Payment on deferred basis can be made to the bank in instalments or in one lump sum amount.

Murabaha contracts allow customers to purchase raw materials, capital goods and other consumables from local and international markets. These goods are first bought by BisB for its account on orders of the customers by paying cash or through LC as the case may be and then sold to the customers with profit margin on deferred payment basis. Payment on deferred basis can be made to the bank in instalments or in one lump sum amount. 

Musharaka works like a limited partnership between BisB and customers who need to import certain goods and equipment but do not have sufficient funds. In this type of transaction, the customer would provide a portion of the funds and BisB would provide the remaining funds and issue LCs to import the goods. When the goods arrive, there are three options available:

a) BisB sells its share in Musharaka to the customer on cash payment or deferred basis at an agreed margin;
b) the customer sells its share to BisB on cash payment or deferred basis; and
c) both sell their shares in the market together.

This product is suitable for financing large projects. Under Istisna, BisB will arrange to build an asset or plant (the Project) in accordance with the specifications requested by the customer. Upon completion, the asset will be delivered to the customer against deferred payment of the sale price.

Ijara is a type of financial lease whereby BisB would acquire certain assets or equipment and then lease it to the customer for payment of rentals (fixed or floating) on monthly or half-yearly basis. At the end of the lease period, the ownership of the asset will be transferred to the customer upon payment of all dues.

Tawaruq is a type of financing whereby the customer would receive a certain amount of cash from BisB through the execution of two instant murabahas in commodities. And the payments will be on monthly, quarterly or semi-annually basis. The customer has to pay the whole amount by the end of the period.

The Sharia’a compatible LC products available to support the internal and external trade activities of its corporate clients include the following:

Import LCs (Sight and Usance):
These LCs are issued by BisB on behalf of its customers who want to import goods from foreign or local suppliers who want an assurance that the payment will be made soon after shipment of goods (Sight) or within an agreed period from the shipment (Usance).

Export LCs:
This service is provided to the local exporters who export their goods either to local or international importers. In order to avoid its clients from taking a loan to finance the LCs, BisB also assists them to finance the LCs through Murabaha or Mushakaraka financing.

Documentary bills for collections (Inward and Outward):
BisB provides this service to customers who wish to trade on open account basis whereby documents are released to the customer upon payment of cash or acceptance of bills of exchange by the importer.

BisB issues all types of Letters of Guarantees (local as well as foreign) to support exporters and contractors within the framework of Saudi Arabian Monetary Agency (SAMA). BisB also issues General as well as Multiple Guarantees.
 
The main types of LGs issued by BisB in connection with the contracting activities beginning from submission of bid to completion of the contract, includes:
 
1) Bid Bond.
2) Advance Payment Bond.
3) Performance Bond.
 
In addition, BisB issues Shipping Guarantees to assist importers to clear goods from the port of arrival before documents have arrived as well as Customs Guarantees guaranteeing the payment of customs and other duties payable to the customs authorities by the importers after clearing their goods.

Other products and services available to our Corporate customers

These include all basic banking services for our corporate customers ranging from opening of Current Account, either in Bahraini Dinars or foreign currency, to deposit and withdrawal of funds, Foreign Exchange, transfer of funds and other such services.

This includes credit facilities to finance receivables, inventory, and other short-term funding needs.

These facilities are intended for projects requiring immediate short term funding which would be repaid by a availing a subsequent medium or long term financing. These facilities are provided by way of short term financing or project related documentary credits.

These facilities are intended for contractors who undertake projects from the Government and semi-Government entities. Financing is provided during construction as well as post-construction period.

These are long-term facilities for new projects in the sectors such as power, oil & gas and petrochemicals. BisB has the ability to finance such projects either directly or on syndicated basis.

The facilities include letters of credit, letters of guarantee etc. for importers as well as exporters.

BisB finances purchase of properties, shares or commodities bringing you closer to various investment opportunities, which was earlier thought to be unaffordable. This financing program is based on assignment of rental income as security and a source of repayment.

This type is designed to suite the clients specific needs. It is structured taking into account the cash flow, payment capacity and the purpose of usage of funds.