Bank ABC Algérie has introduced a new halal car financing product, Al Buraq Carousty, which provides financing of up to 4.5 million Algerian dinars for the acquisition of locally manufactured or assembled vehicles. This product is offered through the bank's Buraq Islamic finance window. The financing is based on a Mourabaha transaction, which complies with Islamic Sharia principles.
The Mourabaha transaction involves Bank ABC purchasing a vehicle on behalf of the client, then selling it to them at cost plus a profit margin. The client repays the sale price in installments according to a predetermined schedule. This financing option is available to salaried employees and retirees. The maximum repayment period is five years, and the financing can cover up to 90% of the vehicle's price.
To ensure compliance with Islamic Sharia principles, Bank ABC's Buraq Islamic finance window has a Sharia control committee comprising specialists in Islamic law and economics. The committee members are appointed by the bank's general assembly of shareholders, proposed by the Board of Directors. This committee validates all services offered through the Buraq window.
Bank ABC Algérie offers other Islamic finance products, including "Moumkine" for furniture acquisition and "Alburaq Soukna Acquisition-Ijara" for residential property acquisition. The latter involves Bank ABC purchasing a property, then leasing it to the client for a specified period. At the end of the lease, the property's ownership is transferred to the client through a separate sales contract.
The introduction of the Al Buraq Carousty financing product aims to cater to clients seeking Sharia-compliant financing options for vehicle purchases. This move aligns with the growing demand for Islamic finance products in Algeria. Bank ABC Algérie's Buraq Islamic finance window provides a range of products that adhere to Islamic Sharia principles.
The financing product has garnered attention from potential clients who prioritize Sharia compliance. Bank ABC Algérie's efforts to provide transparent and compliant financing options are seen as a positive step in the Algerian banking sector. The bank's commitment to Sharia compliance is reinforced by its Sharia control committee.
With the Al Buraq Carousty financing product, Bank ABC Algérie is poised to capture a significant share of the growing Islamic finance market in Algeria. The product's features, including a maximum repayment period of five years and financing of up to 90% of the vehicle's price, make it an attractive option for clients seeking halal car financing.
Key points
- Bank ABC Algérie launches Al Buraq Carousty, a halal car financing product with up to 4.5 million Algerian dinars financing for locally manufactured or assembled vehicles.
