November 03, 2024
Tawarruq Financing (or Islamic Tawarruq) is a financial solution that helps individuals access liquidity while adhering to Islamic law principles. For those seeking Sharia-compliant financing options, Tawarruq is considered a legitimate alternative to conventional interest-based loans, provided that all required Islamic conditions are met.
Linguistically, the term "Tawarruq" derives from "wariq," meaning silver coins, Tawarruq refers to the process of purchasing a commodity on deferred payment and then selling it to a third party for a lower cash price to obtain liquidity. Tawarruq is divided into two main types: Individual Tawarruq and Institutional Tawarruq.
Institutional Tawarruq is a financing method provided by Islamic financial institutions, enabling clients to access cash without resorting to interest-based loans. In this process, the institution acts as an intermediary where the client purchases a commodity on a deferred basis from the bank and later sells it in the market for a lower cash price to gain the required liquidity. As long as the conditions of buying and selling are respected, real Tawarruq complies with Islamic principles.
With the growing demand for Sharia-compliant financing, Institutional Tawarruq is a suitable alternative for those looking to avoid interest-based solutions. This type of financing is valued for its security and reliability, especially when applied under strict Islamic guidelines, as is the case with institutions like Amlak International, which operates under the supervision of a specialized Sharia board to ensure the validity and safety of all transactions.
Amlak International offers innovative, Sharia-compliant financing solutions through a range of products that undergo review by a specialized Sharia board. These services enable clients to obtain the necessary financing with confidence and transparency.
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