Shariah-compliant Treasury Solutions
A treasury of Shariah compliant products and services
Just like any other Islamic banking product or service, our Islamic Treasury Solutions incorporate Shariah-compliant management in every part of the process. Our Shariah Supervisory Board reviews and approves all Islamic Treasury solutions before they are offered to clients.
Be it Foreign Exchange, Profit Rate, or Liquidity Management solutions, our highly experienced team will provide you with tailored and dependable Islamic Treasury Solutions.
Liquidity Management Solutions
A Shariah-compliant product, Wakala Investment offers you profit on excess liquidity at an anticipated rate. You act as Muwakkil while the bank acts as Wakil to invest funds in a pool of Shariah-compliant assets.
Murabaha allows you to invest in funds where profit can be earned at an agreed rate through the difference between the purchase price and sale price of the Commodity Murabaha transaction. A dedicated team works only with the most reputed brokerage houses to execute commodity transactions on your behalf.
Foreign Currency (FX) Hedging Solutions
Islamic Spot FX
Buy and sell currencies at competitive exchange rates in a Shariah-compliant manner by using Islamic Spot FX. Just remember that in order to meet Shariah requirements, delivery of currencies must take place within two trading days from the date of transaction.
Islamic FX Forward
Hedge foreign currency exposure risk against anticipated future adverse rate movements with Islamic FX Forward. Based on the concept of Wa'ad, you can manage your forex exposure by fixing the exchange rate for a future FX trade in advance.
PROFIT RATE HEDGING SOLUTIONS
Islamic Profit Rate Swap
Islamic Profit Rate Swap facilitates efficient hedge cash flows against adverse movements in profit rates. Based on the principles of Wa'ad and Murabaha, it is beneficial for you particularly in managing your exposure to the volatility of profit rates
Islamic Profit Rate Option
Islamic Profit Rate Option allows you to limit your Islamic financing costs to a pre-determined level whilst at the same time continuing to enjoy the benefits of falling profit rates. Based on the principles of Wa'ad and Murabaha, this solution is availed in exchange for a transaction fee.
Islamic Cross Currency Swap
Hedge cash flows against both currency and profit rate volatility with Islamic Cross Currency Swap. Based on the Islamic principles of Wa'ad and Murabaha, you can hedge your assets and/or liabilities against foreign exchange rate fluctuations.
COMMODITY HEDGING SOLUTIONS
Islamic Commodity Price Swap
Commodity Price Swap (Islamic) is a Shariah compliant hedging instrument that allows you to manage your commodity price exposures in an efficient manner. Based on the principles of Wa'ad and Murabaha, it offers protection against adverse movements in the price of commodities by locking in future commodity prices.
Islamic Commodity Price Option
Based on the principles of Wa'ad and Murabaha, Commodity Price Option (Islamic) allows you to limit commodity costs to a pre-determined level whilst at the same time continuing to enjoy the benefits of falling commodity prices. This solution is availed in exchange for a transaction fee.
In addition to the wide selection of industry recognised and Shariah-compliant products above, our in-house specialists can explore more bespoke solutions should your business require it.
For more information, please contact Global Markets Sales at GlobalMarketsSales@fgb.ae or +9712 6932200