Abstract
The Islamic banking industry facilitates both consumer and
corporate clients by providing needed capital through different modes of
financing. The pre-requisites of financing the corporate clients are generally
different from that of the individual customers. This study discusses a
detailed narrative of how a corporate customer, Sufi oil, availed financing
from Bank Islami through ijarah ¯ mode of financing in a Shar¯i‘ah compliant
way. It discusses step by step procedure of dealing with corporate client
starting from the first stage when a representative of the firm visited the
Bank Islami and discussed the firm needs and the possible procedure and
mode of financing. The study provide a comprehensive insight in the internal
procedures involved in evaluating each and every client. Different branches
and their respective role and responsibilities at the branch level and their
interaction with the Head Office have been highlighted. The study has also
briefly discussed various risks that may encounter the transaction and the
manner in which the perceived risks have been mitigated.
The focus of the study is to differentiate the corporate ijarah ¯ from the
consumer ijarah ¯ in terms of both documentation and procedure. The
repayment schedule for the case is also described in detail along with the
rent that the Bank Islami would be getting by leasing any vehicle to the
corporate entity.
Umar Saeed, Asad Gul, Waqar Hussain. (2018) Corporate Ijarah ¯ Financing: A Case of an Islamic Commercial Bank, Journal of Islamic Business and Management, Volume 8, Issue S.
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