Services

Services

  • GBF, together with Sharia Board consultants, provides services for structuring financial products according to Sharia Compliant rules.

GBF is not a loan-debt funding institution.

• Islamic Financing configuring and Arrangements

Mudarabah is a profit-and-loss sharing partnership agreement where one partner (financier or rab-ul mal) provides the capital to another partner (labor provider or mudarib) who is responsible for the management and investment of the capital. The profits are shared between the parties according to a pre-agreed ratio.

Musharakah is a form of a joint venture where all partners contribute capital and share the profit and loss on a pro-rata basis. The major types of these joint ventures are:

Diminishing partnership: This type of venture is commonly used to acquire properties. The lender/bank/agent and investor jointly purchase a property. Subsequently, the lender/bank/agent gradually transfers its portion of equity in the property to the investor in exchange for payments.

Permanent musharkah: This type of joint venture does not have a specific end date and continues operating as long as the participating parties agree to continue operations. Generally, it is used to finance long-term projects

Ijara Lease and Lease with Islamic Finance
The term is most commonly used to refer to a situation in which a family or individual rents a property with the sole purpose of eventually owning it. Ijara is used for property as well as business assets and equipment,

The process involved in Ijara for Muslim leasing and Islamic financing purposes is quite simple and involves creating a Trust with a single entity. The foundation will then purchase the property in question and then rent that property to whoever the client is. With each monthly payment made, some of the payment will go to the property and the remainder to the rental, until the point where the customer owns 100 percent of the entire property.

What makes Ijara different from traditional lease situations is that the Trust is obligated to sell the property to the buyer using what is known as a Promise to Buy in an Ijara. This contract also gives the customer the right to purchase the property, but they will not actually be obligated to make the purchase.

leasing GBF

Mudaraba is a profit-loss sharing agreement in which one partner (financier or rab-ul mal) provides the capital to another partner (employee or mudarib) who is responsible for the management and investment of the capital. Profit is shared between the parties according to a pre-agreed ratio. In a mudaraba arrangement, one of the partners in this group provides capital to a businessman or entrepreneur so that he can invest it. The investment is of a commercial nature and the idea is to pool some profit to be shared under the principles of sharia compliance

A Wakalah is a contract where a person ( muwakkel) appoints a representative (the agent or wakil) to undertake transactions on his/her behalf, similar to a power of attorney. The agent’s services may include selling and buying, lending and borrowing, debt assignment, guarantee, gifting, litigation and making payments, and are involved in numerous Islamic products like Musharakah, Mudarabah, Murabaha, Salam and Ijarah

Sukuk Al-Ijarah is a Shariah compliant lease. Sukuk Al-Ijara is mostly widely financed through a SPV. The Originator, the Issuer SPV and the investors are three main parties involved in the securitization of an asset through the SPV.
For example, a customer orders an asset. The INVESTOR establishes an SPV. The Special Purpose Vehicle funds the asset through issuance of certificate of ownership to investors. Once the asset is bought and transferred to the customer under Ijarah Muntahia bi Tamleek, periodic rental payments made by the client throughout the rental period serve as the principal and return to the investors.
Configuring with SPV
1-For Realizing a new project, Developing a current project or any commercial operation …
2-For Purchase-Selling operations of Commercial Commodities and Services …
3-For the operations of Renting and Usufruct ….
4-For the Rights and Possession of Property ….

(The global sukuk market hits a new record, with a total sukuk issuance of USD174.2 billion, while the global sukuk outstanding stood at USD572.6 billion.)

We provide arranging and structuring to corporates and sovereigns looking to access the $500 billion annual Sukuk capital markets.

TAWARRUQ (MONETIZATION)

Lenders and Banks become the investor (buy-sell-lessor) of your assets. An example is the Tawarruq (monetization) financing through Special purpose vehicle. The SPV servicing it as a backdoor to engage in prohibited transactions.

Tawarruq is an arrangement whereby a person, in need of liquidity, purchases a commodity from a seller on credit at a higher price (to buy on credit and sell at spot value)

Majority of the Hanbali jurists have preferred the version according to which ‘tawarruq’ is permissible.  The Shafi’i jurists have allowed ‘Inah’, and therefore it seems that ‘Tawarruq’ is permissible with them with a greater force.

 Maliki jurists are  it appears from their books that they do not see a problem in ‘Tawarruq’.

 Thus, the preferred view in all the four schools of Islamic fiqh is that Tawarruq is permissible.

A special purpose vehicle can be a “bankruptcy-remote entity” because the operations of the entity are restricted to the purchase and financing of specific assets or projects.

The typical legal forms of special purpose vehicles are partnerships, limited partnerships, or joint ventures.

Twarruq images 1

Tawarruq and Murabaha: What’s the difference?

Murabaha – The bank purchases goods on behalf of a customer

One example of this is Murabaha. Here, a bank will purchase goods on behalf of a customer – such as a new car, furniture, electronics or a home – and then sell them to the customer at a profit. The profit, added to the customer’s monthly installments, is referred to as a profit rate. It is very similar in structure to a “rent to own” arrangement as the intermediary retains ownership of the goods or property until the loan is paid in full.

Tawarruq monitization

Tawarruq – Is commodity Murabaha

Another concept often used in the  Islamic banking industry is Tawarruq. This is a development of Murabaha and is sometimes referred to as commodity Murabaha or reverse Murabaha as it involves having access to cash through the trading of a commodity in a real transaction.

There are two main steps involved in Tawarruq; first is the Murabaha stage where the bank and the customer enter into a commodity Murabaha contract – this could be where a bank buys shares or commodities on behalf of the customer and then leases them back to the customer. The customer then owns – either physically or constructively – the assets subject of the Murabaha contract. The second step in this process is the asset liquidation stage – where customers can choose to either sell or liquidate the assets via an agency agreement through the bank.

Which one is used, when?

Generally, Tawarruq is permitted for those transactions that cannot be fulfilled through other Islamic Banking means such as giving a customer access to cash for the financing of intangible personal needs. These can include short-term needs such as travel, education or renovating a home – or just to give a customer some cash to resolve a cash flow crisis. Murabaha, on the other hand, is generally used for longer-term loans such as the purchase of a house or car.

However, it can be confusing for customers as to which personal finance product falls under which concept. Traditionally, Tawarruq was a transaction that involved three parties (the bank, the customer and the broker) and Murabaha involved four (the bank, the customer, broker one and broker two). But these terms have merged as scholars requested that most three party-transactions be enhanced to four – making the difference between the two very blurred. Among many scholars today, the terms are virtually interchangeable.

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CONFIGURING WITH SPECIAL PURPOSE VEHICLE

Sukuk Al-Ijarah is a Shariah compliant lease. Sukuk Al-Ijara is mostly widely financed through a SPV. The Originator, the Issuer SPV and the investors are three main parties involved in the securitization of an asset through the SPV.

For example, a customer orders an asset. The INVESTOR establishes an SPV. The Special Purpose Vehicle funds the asset through issuance of certificate of ownership to investors.  Once the asset is bought and transferred to the customer under Ijarah Muntahia bi Tamleek, periodic rental payments made by the client throughout the rental period serve as the principal and return to the investors.

Configuring with SPV 

1-For Realizing a new project, Developing a current project or any commercial operation …

2-For Purchase-Selling operations of Commercial Commodities and Services …

3-For the operations of Renting and Usufruct ….

4-For the Rights and Possession of Property ….

Uses of Special Purpose Vehicles

The following are the most common reasons for creating SPVs:

1.Risk sharing

A corporation’s project may entail significant risks. Creating an SPV enables the corporation to legally isolate the risks of the project and then share this risk with other investors.

2.Securitization

Securitization of loans is a common reason to create an SPV. For example, when issuing mortgage-backed securities from a pool of mortgages, a bank or agents can separate the loans from its other obligations by creating an SPV. The SPV allows investors in the mortgage-backed securities to receive payments for these loans before other creditors of the bank.

3.Asset transfer

Certain types of assets can be hard to transfer. Thus, a company may create an SPV to own these assets. When they want to transfer the assets, they can simply sell the SPV as part of a merger and acquisition (M&A) process.

4.Property sale

If the taxes on property sales are higher than the capital gain realized from the sale, a company may create an SPV that will own the properties for sale. It can then sell the SPV instead of the properties and pay tax on the capital gain from the sale instead of having to pay the property sales tax.

5.Benefits:

  • Isolated financial risk Direct ownership of a specific asset
  • Tax savings, if the vehicle is created in a tax haven such as the Cayman Islands or another offshores   Easy to create and set up the vehicle

The optics surrounding SPVs are sometimes negative

A Special Purpose Vehicle (SPV) is a subsidiary company that sits underneath a parent company and is set up for numerous reasons.

SPVs can be used to mitigate risk. If its parent company was to become bankrupt the assets held by the SPV would be protected.

SPVs can also be used to raise capital for its parent company at a favorable borrowing rate. In addition to this other benefits include the ability of the SPV being able to operate in any jurisdiction while being based in an attractive jurisdiction that fits best from a regulatory perspective.

The Special Purpose Vehicle (SPV) is a crucial financial tool in the implementation of the sukuk or investment financing.

In our opinion, iJARA and Descending Musharaka mode are the most flexible and compatible with Sharia. We are working with our dedicated product development team and legal team to develop a commercially viable, Shariah-compliant structure as it is also flexible in terms of payments for the client.
Also, our STRUCTURING MODEL can be used to finance our interest-based mortgage customers and we can tailor this product to suit them. Also, when we have a Descending musharakah, we work to develop an Ijarah product.
Please note that our team has expertise in Sharia consulting, so we stay in our field and provide top quality work. For sharia processes and legal agreements, we work with customized documents best suited to the area, country and lenders where the product is offered.
We make iJARA-Leaseback or Mudaraba agreement or Murabaha agreement with lenders.
The “Sale and Lease Back Decreased Musharaka” mode can be used in cases where the financier will buy part of the house from the customer and lease it back to the customer with the same mechanism as the Decreasing Musharaka. This mod is AAOIFI compliant and used by Islamic Finance Institutions worldwide.
A home mortgage loan is primarily made for personal, family or household use and is secured on a home with interest on a mortgage, trust or other equivalent consensual security.
As a community-focused organization, we never recommend unusual programs such as NINA, NINJA or SISA loans. Today’s financial regulations have virtually eliminated such dangerous programs.

 
We do not give loans and do not find credit.We provide structuring consultancy services for the loans that customers have received and will receive.

We provide configuration for conversional mortgage-holders that are already happy with their rates and terms of their current mortgage, but just want to convert it to be sharia-compliant.
We provide special Configuring consultancy for those who want to buy a new home or commercial or want to change their credit terms with Refinance.
Your assets are legally protected with TRUST and SPV, which we recommend in configuring our services. You can transfer your assets to the people you want by will.

 

  • You can communicate one-to-one with financial institutions in our network with our translator support in any language. Finance and investment-search

 

     You can examine the financial fields and instruments that we can configure according to Sharia Compliance rules below.

A-RESIDENTIAL FINANCE

B-COMMERCIAL FINANCE

C-NON-PROFIT FACILITIES FINANCE

D-CONFIGURING

E-REAL ESTATE FINANCE

1-OWNER TO OWNER TRANSACTİON FİNANCE

2-DEVELOPER PURCHASE FINANCE

3-CONSTRUCTION FINANCE

4-EQUİTY RELEASE FINANCE

5-NON-RESİDENT HOME FINANCE

6- PROPERTY FINANCE

F-CAR -TRANSPORT TOOLS FINANCE

G-EDUCATION FINANCE

H-SMALL BUSİNESS FINANCE

I-WORKİNG CAPİTAL FINANCE

J-GOODS FINANCE

K-TRADE FINANCE SOLUTIONS

L-FIXED ASSET FINANCE

M- INTERNATIONAL INVESTMENT FINANCE INTERNATIONAL FUNDS

N-SUKUK – ISLAMIC BONDS

(The global sukuk market hits a new record, with a total sukuk issuance of USD174.2 billion, while the global sukuk outstanding stood at USD572.6 billion.)

We provide arranging and structuring to corporates and sovereigns looking to access the $500 billion annual Sukuk capital markets.

Global Benefıcıal Fınancıng-GBF is your reliable source for Sharia-compliant financing options. Through our licensed providers, we offer Islamic funding solutions in the USA and other countries. We take great pride in helping you get your dream home or commercial properties and investment and trade activities without having to worry about Riba

Purchasing a house for you and your family using a Riba-free financing alternative has plenty of advantages

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LET US HELP YOU

Our business focuses on providing you with Sharia-compliant financing alternatives so that you can purchase the real estate you want. The following are what sets us apart from our competition:

  • Excellent lenders who offer competitive fees and rates
  • User-friendly online application process
  • Professional advice and guidance from experienced Islamic financing experts
  • Transparent transactions
  • Easy to get in touch with
  • Rent-to-own payment options that help gain equity without excessive interest
  • GBF, together with Sharia Board consultants, provides services for structuring financial products according to Sharia Compliant rules.
  • GBF is not a loan-debt funding institution.
  • Those who want financing in accordance with the Sharia criteria first agree with the lenders and banks on the product types and conditions.
  • You can communicate one-to-one with financial institutions and lenders in our network with our translator support in any language
  • GBF prepares the Sharia at structuring model and fatwa according to your lender products and conditions.

We present our CONFIGURING studies for your evaluation in order to produce alternative solutions in countries where conventional and traditional banking and finance sector are very developed, people generally use finance from conventional banks, and Islamic banks are not very common.
Our CONFIGURING consultancy studies; With Islamic financial models and criteria are made through Trust, SPV, Agent Special Vehicles and Leaseback-Buy/Sell/Lease and Tawarruq (monetization) financing methods.