Our Asset Classes
Non-interest Equity
The Non-interest Equity market is where non-interest commercial jurispudence-compliant stocks are traded. For a muslim, the primary benefit of investing in Non-interest Equities is assurance that the funds are purchasing only sharia-compliant assets. Asides from its religious advantages, Non-interest Equity provides transparency, financial screening, diversification, and liquidity.
Debt
Interbank Wakalah
Interbank Wakalah is a wholesale money market transaction designed as a liquidity management instrument in the Non-interest Money Market. Based on a contract of Wakalah (Agency) with the objective of making a profit, its features are all but not limited to the following:
The actual return is known only on the maturity date
Fixed maturity period
Known risk profile
Principal is not guaranteed
There are four types of Interbank Wakalah:
Wakalah Interbank Placement (WIP)
WIP refers to the Bank investment on the basis of Wakalah to another participating bank.
Wakalah Interbank Acceptance (WIA)
WIA refers to the Bank accepting investment on the basis of Wakalah from another participating bank.
Foreign Wakalah Interbank Placement (FWIP)
FWII/FWIP refers to the Bank investment in foreign currency on the basis of Wakalah to another participating bank.
Foreign Wakalah Interbank Acceptance (FWIA)
FWID/FWIA refers to the Bank accepting foreign currency investment on the basis of Wakalah from another participating bank.
Non-interest Derivatives
Non-interest Profit Rate Swap
A Non-interest profit rate swap is an agreement to exchange profit rates between a fixed rate party and a floating-rate party, or vice versa, implemented through the execution of a series of underlying contracts to trade certain assets.
Each party’s payment obligation is computed using a different pricing formula. In a Non-interest profit rate swap, the notional principal is never exchanged as it is netted off. The profit payments are made through the execution of a series of underlying Non-interest commercial jurispudence-compliant contracts.
Non-interest Currency Swap
Currencies
Each party’s payment obligation is computed using a different pricing formula. In a Non-interest profit rate swap, the notional principal is never exchanged as it is netted off. The profit payments are made through the execution of a series of underlying Non-interest commercial jurispudence-compliant contracts.
Ethical Commodities
Each party’s payment obligation is computed using a different pricing formula. In a Non-interest profit rate swap, the notional principal is never exchanged as it is netted off. The profit payments are made through the execution of a series of underlying Non-interest commercial jurispudence-compliant contracts.