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Meethaq offers a wide range of attractive and flexible term and project finance solutions to meet the needs of the large corporates, small-and-medium enterprises and entrepreneurs. Whether you are looking for a finance to build an industrial unit or acquire an office building or expand your operations, we have the most effective Shari’a compliant finance solutions for your growing needs. No matter how complex is your need, our experienced finance experts will work-out the best possible finance solution for you. Many leading corporate names in the industry in Oman prefer to rely on Meethaq for their term and project finance requirements.

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 instalment 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” however, 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 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 instalments 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. Having the required Shari'a expertise, 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.

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