Islamic financing is Sharia-compliant investment structured to satisfy investment objectives.
Islamic finance, which follows Shariah’s ban on interest, have made considerable progress in last decade.
There is a tremendous demand for Islamic finance in the Gulf region.
More and new Shariah-compliant products and structures are available for businesses.
Megafin Capital arranges Sharia-compliant financing for all kinds of small, medium and large companies in the UAE and Gulf region. We have taken part in a variety of Islamic finance transactions in recent years which have involved several Islamic finance structures like
Murabaha based finances – cost plus/sale with mark-up
Mudaraba based finances – profit sharing
Istissna based finances
Tawarouk based finances
Islamic Trade finance services
Ijarah – Lease Finance
Musharakah- Joint Venture/partnership
Islamic Finance can be a good alternative source of funds and is preferred mode of financing for certain corporate and individuals.
Megafin Capital has been arranging Islamic finance forCorporate finance - Trade Finance facilities
LCs and TR only
Equipment and Machinery Lease Finance / Operating Lease / Ijarah
Is arranged for any kind of civilian use equipment and machinery.
Private Equity Investment
We assist in identifying and structuring private equity opportunities that comply with the Shariah principles
Investment in Real Estate Projects
We arrange Real Estate Equity Investment/ Funding for residential, commercial and mixed used properties.
Small Business Finance
Various viable projects (except alcohol, tobacco and gambling related business)
We assist in arranging structured products that comply with the Shariah, including Ijara and Murabaha etc
Islamic Lease finance: Operating Lease Ijarah
The lease finance is a renting of equipment that can be used to lease a variety of equipments.
Ijarah means lease, rent or wage.
Generally, Ijarah concept means selling benefit or use or service for a fixed price or wage.
Under this concept, the Bank makes available to the customer the use of service of assets / equipments such as plant, office automation, motor vehicle for a fixed period and price.
The Shariah-compliant product offering institution acquires title to the asset and provides it to the
customer on rent. At no time title to the asset is passed to the customer nor it is expected to be passed.
If the customer wishes to purchase the asset at a later date a separate agreement is drawn up.
The benefits offered include
Conserves the Lessee' capital since it allows up to 100% financing.
Gives the Lessee the right to access the equipment on payment of the first installment.
Arrangements aid corporate planning and budgeting by allowing the negotiation of flexible terms
Off-balance sheet financing.
It is not considered Debt Financing so it does not appear on the Lessee' Balance Sheet as a Liability.
If the equipment is used for a relatively short period of time, it may be more profitable to lease than to buy.