Al Mudarbah

It is a partnership agreement between the bank and the client (the bank acts as the capital provider, contributing the capital, while the client acts as the speculator, contributing expertise, management, and labor). The profit-sharing ratios are agreed upon in advance, such as 60% for the capital provider and 40% for the speculator. Losses, however, are borne by the capital provider, provided there is no negligence, fraud, or breach of contract on the part of the speculator; the speculator, meanwhile, loses only his effort and time.

Types of this arrangement include unrestricted mudaraba and restricted mudaraba, which are most commonly used in the areas of investment portfolios, funds, financing for small and medium-sized enterprises, microfinance institutions, and Islamic financing for technology and entrepreneurship.

Among the most important Sharia guidelines are that the capital must be known and specified; the capital may not be guaranteed except in cases of negligence or breach of contract; the profit must be a percentage of the actual profit, not a fixed amount; a fixed profit may not be determined in advance; and the activities must be Sharia-compliant.

Mudaraba financing steps

  • Open a bank account.
  • Submit an application for the specified financing.
  • Submit proof of business activity (business license, pay stub, and professional license from the relevant and accredited authorities).
  • Submit a pay stub from the employer, provided that the monthly installment does not exceed 50% of the monthly salary for salaried employees.
  • The first installment is paid after the financing is approved and the contract is signed, amounting to 10% of the sale price (purchase price plus profit margin) for salaried individuals whose salaries are deposited into the bank, and 20% for those whose salaries are not deposited into the bank.
  • Annual profit margin starting at 25%, depending on the customer’s creditworthiness, repayment period, and payment method.
  • Repayment period of up to 24 months.
  • Repayment is made in monthly installments with no grace period.
  • Provision of appropriate collateral (real estate, investment deposit, insurance policy from a major insurance company with external reinsurance, plus a guarantee check from a qualified guarantor).
  • Application approval and financing are contingent upon the customer’s good creditworthiness (reasonable account turnover, acceptable collateral, and a tangible project).
  • Application approval and financing are granted after verifying Know Your Customer (KYC) requirements, checking blacklists, and conducting a credit inquiry.
  • Financing is provided in accordance with the provisions of Islamic Sharia, as well as the regulations, policies, and circulars governing micro and small financing for individuals, groups, and associations issued by the Central Bank of Sudan, Al-Baraka Banking Group, regulatory authorities, and Sharia supervisory bodies.

Frequently Asked Questions

Answers to your questions

Financing compliant with the provisions of Islamic Sharia, in accordance with the policies and publications issued by the Central Bank of Sudan and Al Baraka Banking Group, Sharia supervisory boards, government agencies and regulatory bodies such as (agricultural & industrial & export & import & service & mining & medical & real estate financing – as permitted by the Central Bank of Sudan’s policy & transportation – as permitted by the Central Bank of Sudan’s financing policy, and other financing products – electrical appliances, furniture and tools & solar energy & spare parts and maintenance of private and commercial vehicles & medical devices and equipment for doctors, medical laboratories and clinics, dispensaries and health centers)

Subject to bank policies and Central Bank regulations, including creditworthiness assessment.

Based on the financing amount and duration after application review.

Through bank branches or digital channels.

Through the branch or customer service.