Islamic Finance

 islamic finance

Banque Saudi Fransi (BSF) offers many Shariah compliant solutions.

Banque Saudi Fransi (BSF) offers many Shariah compliant solutions to Corporates by providing a number of financing products and solutions to meet simple and complex needs of our customers.

Through our Structured Finance Division, we offer complex and innovative Shariah compliant project and contract finance solutions under bilateral and syndication arrangements.

For corporate and high net-worth customers, the bank has Shariah approved commodity Murabaha transactions, which can be employed as a substitute for conventional term deposits, as well as a vehicle to obtain cash financing in the reverse-Murabaha mode.

Through our Group Treasury BSF offers Shari'a compliant hedging products to cover currency and profit rate risks, as well as Structured Murabaha Investment solutions for customers to earn higher returns on their investment

BSF is able to cater for all the Sharia compliant financing needs of its customers through an invocative yet prudent use of the following widely approved modes of Islamic financing:


Sale of product on deferred terms at cost plus mutually agreed profit. Based on promise to purchase by the customer, the bank buys a product directly, or through the customer and sells the product to the customer by adding it’s agreed profit, for payment in the future.


Tawarroq is also based on the Murabaha principle of purchase of an approved commodity by the customer from the bank on cost plus profit basis on deferred payment terms. However, the customer normally sells this commodity immediately at spot price to generate money for his other uses and/or expenses.


Sale of a usufruct (right to use) of a fixed asset. Ownership of the asset remains with the bank and customer pays rent as per agreed terms. Bank undertakes to sell the asset at pre-agreed price at the end of the lease period at the lessee’s option. Apart from its common use for auto and house finance, it is presently widely used for structured project finance as well as underlying structure of Sukuks.


This is a project finance option with a cash advance (in one lump sum, or in installments) to a customer approved contractor to construct a project with future delivery to the bank. After buying that project, the bank would normally sell it to the customer on deferred terms under Murabaha or Ijara structures.

BSF’s Sharia Committee

The Shariah committee of BSF includes prominent members of the Islamic finance industry whom are renowned for their contributions to the advancement of Islamic finance & Banking globally in the last decade. The committee consists of Sheikh Abdullah Al Manea (Chairman), Dr. Mohammed Ali Elgari, and Dr. Abdul Sattar Abu Ghuddah.