At LB Al-Salamah, we offer a customized Wakala Draft Facility Arrangement a Shari’ah-compliant solution designed to facilitate the working capital requirements.
Under this arrangement, LB Al-Salamah (the Muwakkil – principal) appoints the client (the Wakeel – agent) to act on its behalf and draw funds from an approved limit for working capital purposes, in full accordance with Islamic finance principles.
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A Wakala Draft Facility is an Islamic financial arrangement where the Wakeel is authorized by the Muwakkil to carry out specific financial obligations within a pre-agreed arrangements and for clearly defined purposes.
The client, as the Wakeel, should act strictly in accordance with the mandate provided and ensures that all underlying transactions are free from interest (riba), speculation (gharar), and any non-Shari’ah-compliant activities.
- All transactions are executed within the limits of an agreed-upon facility amount and for Shari’ah-compliant purposes only.
- Fund utilization may only be used for ethical trade, business, or financial purposes.
- Clear documentation, pre-approved terms, and reporting ensure full transparency between the principal and agent.
- Shari’ah-compliant trade finance solution.
- Ideal for businesses requiring ethical and interest-free draft arrangements.
- Flexibility in managing payments through an agency structure.
- Transparent fee structure with no hidden charges.
- Businesses seeking Shari’ah-compliant financial arrangements.
- Traders and importers requiring draft issuance without incurring interest.
- Islamic finance clients who want control and transparency over their financial transactions.
- LB Al-Salamah appoint the client as an agent (Wakeel) under a Wakala contract.
- The purpose, limits, and terms of draft issuance or payment authority are clearly outlined.
- LB Al-Salamah issues the draft(s) or processes payments on behalf of the client, strictly within the scope of the agreement
