Tunisia: Islamic Finance – Bank Zaytuna – A range of innovative products and services

Zaytuna Bank has launched a new funding   mechanisms for the benefit of developers.  This was announced by Mr. Hafedh Barouni, chairman of its Administrative Council, at a meeting held last Wednesday with many investors and professionals.

 New born size in the world of Islamic finance, Bank Zaytuna enriches, and beautiful manner, the financial landscape and the domestic banking service economy and the Tunisian society as a whole.  Indeed, in addition to its significant contribution expected in the economic revitalization of the country, the financial institution is a bank with a strong civic social responsibility.  That it intends to include on his fields of practice, and various sectors and areas related to sustainable development and well-being of Tunisians.

 In doing so, the bank offers a full range of products and services that conform to the principles of Islamic finance and the needs of corporate clients, individuals and professionals.  As it proceeds according to national and international circumstances, both.  Hence the realism of its initiatives and the preventive services and impregnating his fields of action.

 From there, it should be noted that the Bank has not failed Zaytuna designing an operating system adapted to its environment.  Its assets would be a good accompaniment to other clients, a strong participation in the revitalization of the banking system, offers Islamic finance products and a great return on investment.

 Objectives whose achievement would undoubtedly depend on a perfect complementarity between the institution and all of its customers.  So much so that its values, namely ambition, fairness, innovation and commitment, inspired by a vision of social and societal basis.

 Steeped in the values of solidarity and mutual governing Tunisian society, the bank ensures equitable access to its products and services and offers the best solutions to its clients, anticipating and innovating.  Commitment is the watchword, given a mission inspired the foundations of Islamic finance to share the risks and act as a true partner.

 Principles and services

 Four basic principles distinguish the Zaytuna Bank, namely the lack of “riba”, the backing of an active service, sharing of risk and benefits and contractual certainty not including the uncertainty, the ambiguity and risk games.

 As well, financing techniques adopted by the Bank and Zaytuna based on moral and ethical principles of Islamic finance.  The technique of “Murabaha” is a frank illustration.  This is a commercial transaction includes the acquisition and sale of a property to a purchaser or other end through the addition of the bank a profit to the cost of acquisition of that property.  The margin of profit of the bank may consist of a fixed amount or a percentage of original purchase cost of the property determined in advance.

 Leasing (Ijara) is another technique performed by the same bank.  This is to acquire property assets make them available to their customers in order to make use, in return for a fee (rent).  The Ijara would be a kind of enjoyment of a usufruct known with a margin known for a specified period.

 Another principle of Islamic finance which the bank acquires Zaytuna is “istisna’a.  This is a contract whereby one company buys a property requiring a manufacturing process.  The seller agrees to buy raw materials and manufactured to deliver the goods according to a predefined description of characteristics at a price fixed and paid as agreed.

 Moreover, the bank focuses, inter alia, the financing of property development.  The funding duration is the duration of the project while taking into account the planning of marketing does not exceed 36-48 months.  Just like the LTV up to 70%.  This type of financing (real estate) has been granted by an annualized profit margin and justified by the strength of record (project, expertise and quality customer risk developer). Thus, the bank appears to be potentially competitive in the industry with its pricing study.

 Regarding the stages of financing, the Bank will begin by studying the client’s need, then, is valid under a plan adopted an overall limit backed counts and invoices relating to materials and tangible property, such as civil engineering, plumbing , electricity, equipment, air conditioning and heating, carpentry, staff and facilities among others.

 As and when the presentation of statements and invoices, Murabaha financing is put in place by successive draws (the bank pays the suppliers directly and then resells the property or material acquired different, given that resale transactions are settled according prints available to the developer to use the total funding).

Plus, the Zaytuna Bank offers opportunities for collaboration with developers, the aim of channeling a significant flow of customers to its partners and sponsors vice versa and enjoy the speed of disbursement for real estate financing to individuals.

 The other won the Bank would Zaytuna its investment options which allows the customer to best invest its funds in a number of projects, given his expertise.  Profits previously agreed with the bank will be distributed to the client and applied under the terms of the contract “Mutharaba.  The Bank offers also the possibility to choose the project that is being invested from a list of potentially profitable projects.  On this, as it promises on both economically and socially.

Source :  La press (Google translated)