Al Musharakah- Profit/Loss sharing

Partnership arrangement reflects 100% objectives of the Islamic Economic Ideology. Here the parties contribute their money or efforts of expertise or a combination of both based on profit & loss sharing. Profits may be shared in any pre-agreed proportions but the loss if any is only borne by the parties in strict proportion of the capital contribution by each. Those with no contribution to the capital shall not share the losses.

Al Modaraba - Trust Financing

The lslamic mode in which one or more persons give capital and the other party their expertise, to achieve a defined objective. This mode of financing can be used in any economic activity within the Islamic frame work. Profits are distributed as per the agreed terms among all parties concerned i.e. providers of funds and the contributors of Expertise, but the losses are shared only by the providers of fund in exact proportions of their capital contribution.

Al Murabaha- Credit Sale

Al Murabaha covers the sales against deferred payments whereby the buyer pays at the pre-agreed later date the price of the goods plus the pre-agreed Murabaha profit under single payment or in installments. In the event of delay of payment on maturity (due to genuine reasons), there will be no additional profit to be added. In conventional banking terms no 'overdue charge" and 'over due interest' is recovered. In this transaction price and the due date of payment is fixed in advance, which is very similar to the TR or a short-term loan under the conventional banking facility. However, the customer is entitled to a bonus for pre mature settlement.

Ijarah- Leasing

In this transaction, a person leases a particular asset at a pre-determined rental rate and for specific period of time. He can negotiate for lease purchase of the product. The payments under Ijarah include a portion which goes towards the final purchase price and transfer of ownership of the product.

FCS can arrange both types of leases i.e. Ijara (operating lease) and Ijara wa Istisna (financial lease). Under financial lease, ownership of the leased item transfers to the lessee while in the operating lease the ownership of the leased item remains with the lessor with an option to buy.

Al Istisna - Construction projects

'Al Istisna" covers mainly the funding of the construction projects, whereby under the agreement, the Financier execute the projects, and on completion sell the project to the customer under " Murabaha" enabling the customer to pay back in easy installments.