The Direct Murabaha Investment operations of Saudi Fransi Capital provide clients with the opportunity to participate in trading goods and commodities in international markets in accordance with Islamic principles.
Direct Murabaha Transactions
Transactions involve the purchase of goods and commodities on a spot basis and the subsequent sale of these goods with a markup on a deferred payment basis. Saudi Fransi Capital represents investors in these transactions and identifies the contracting parties, which are distinct entities, on their behalf.
Transactions are of a short-term nature ranging between 30 and 360 days. The investor's profit is the difference between the purchase and sale price of the commodities.
Given Banque Saudi Fransi's affiliation with Crédit Agricole CIB and its association with other major international banks, it is extremely well positioned to identify such trade finance opportunities.
Characteristics of Murabaha investment
- low risk transaction.
- Investors select Investment periods that suit their needs.
- Reasonable returns that do not involve interest rates and are based on the Murabaha concept.
- Professional management of the underlying transactions.
- Minimum transaction size is US Dollars 1 million.
For further information please visit: www.sfc.sa