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Meethaq
TRADE SERVICES
Overview

As the pioneering and largest Islamic banking entity in Oman, Meethaq offers a suite of innovative and customized trade services’ solutions to meet your international and domestic trade needs. Our team of highly experienced experts well-versed in Islamic trade services are best placed to understand your unique needs and provide you with effective Shari’a compliant solutions to help you in taking your business forward. Whether it is bank guarantees or letters of credit, Meethaq is ready to go an extra mile to be your perfect business partner.

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 liability. The Bank provides the guarantee on Kafalah basis. Kafalah means to add an obligation to an existing obligation in respect of a demand for something. This may relate to a person, finance or act (performance).

Types of Guarantee offered by Meethaq
  • 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.

Benefits
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