Products & Services
Investment Contract
Investment products under Musharakah and Mudarabah.
Shariah-Compliant Investment Products
Investment Contracts: Musharakah & Mudarabah
Explore equity-based financing models that foster partnership, transparency, and fair profit-sharing while adhering to Shariah principles.
Musharakah Financing is a collaborative, Sharia-compliant solution where partners co-own, share risk, and contribute capital and expertise.
Features & Benefits
- Active Involvement: Partners participate in management and decision-making.
- Joint Ownership: Two or more parties co-own the venture.
- Risk Sharing: Losses proportional to capital contributions.
- Profit Distribution: Pre-agreed ratios.
- Equity-Based Financing: Alternative to debt financing.
- Entrepreneurial Support: Facilitates SME/startup funding.
- Asset-Backed Financing: Partners contribute cash or assets.
- Flexible Structure: Diminishing or Equity Musharakah options.
Requirements
- Sharia Compliance: Adhere to Islamic finance principles.
- Partnership Agreement: Roles, responsibilities, and profit/loss ratios.
- Capital Contribution: Documented in cash or assets.
- Transparent Communication: Regular updates and open dialogue.
Financing Process
- Project Assessment & Agreement: Joint evaluation and formal agreement.
- Joint Investment & Ownership: Partners provide capital/assets.
- Profit & Loss Distribution: Shared per agreed ratios.
Mudarabah Financing is a Sharia-compliant partnership where Rammis Bank provides capital and the client contributes expertise and management.
Features & Benefits
- Sharia Compliance: Fully aligned with Islamic finance principles.
- Loss Bearing: Losses borne by the capital provider; Mudarib liable only for negligence.
- Profit Sharing: Pre-agreed ratios.
- Non-Participation in Management: Mudarib manages operations.
- Partnership Termination: Contract can be terminated per agreed terms.
Requirements
- Business Proposal: Detailed plan with objectives and financial projections.
- Client Contribution: Skills, labor, or expertise demonstrated.
- Transparency: Open communication and reporting.
- Capital Provision: Initial investment in cash, assets, or combination.
- Supporting Documentation: Required legal and financial documents.
Financing Process
- Consultation & Agreement: Formalize profit-sharing terms.
- Capital Deployment: Bank provides capital; client manages operations.
- Business Operations: Client runs business; bank monitors progress.
- Profit Distribution: Per agreed ratio.
- Loss Management: Losses absorbed by the bank; client liability limited.