Tawarruq Working Capital

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Tawarruq Working Capital

Placing your trust in us is a decision we honor and respect. In the framework of this agreement, Kuwait Finance House (formerly Ahli United Bank) will allocate the entire financing amount, generated through the Tawarruq Commodities transaction, into the client's deposit account. This strategic deployment of funds is designed to address the diverse financial needs of the company. As the day concludes, any remaining balance in the account undergoes a judicious investment process. This investment is executed as a Wakala investment, with the profit rate determined by Kuwait Finance House (formerly Ahli United Bank). This meticulous approach ensures that every aspect of your financial resources is optimized, adhering to the principles of transparency and profitability that define our commitment to your financial success.

Overview

Your account with us is certainly a winner!

Placing your trust in us is a responsibility we hold with utmost care and dedication. Within the parameters of this agreement, Kuwait Finance House (formerly Ahli United Bank) pledges to allocate the entire financing amount, stemming from the Tawarruq Commodities transaction, into the client's deposit account. This strategic allocation is orchestrated to fulfill the diverse financial requirements of the Company. As each day concludes, any remaining balance in the account is methodically invested. This investment operates as a Wakala investment, with the profit rate meticulously determined by Kuwait Finance House (formerly Ahli United Bank). This meticulous approach ensures that every aspect of your financial resources is optimized, aligning with our unwavering commitment to transparency, profitability, and your sustained financial success.

Features

Because your profit is our priority, we have designed for you TWC with the following features:

The company's short-term working capital requirements are covered.
The sale price of Tawarruq remains the same during the contract period.

Do you wish to obtain TWC

All you need to do is follow these simple steps:

Audited financial statements and cash flow statements for the last three financial years.
New evaluation of collateral, if any.
Your legal documents.
Official facility request form.

Commissions and Fees

Price: Fixed price (Central Bank discount rate +%)

FAQs

What is the maximum facility amount under TWC product?

Subject to Kuwait Finance House (Formerly Ahli United Bank) assessment and review.

Can TWC product support medium- or long-term finance?

The TWC product is tailored to support short-term working capital financing.

Terms and conditions

Wakala profit calculation shall be made on the average daily balance basis and shall be credited at the end of each Kuwait Finance House (Formerly Ahli United Bank) quarter.
The client should provide a recent assessment of collaterals, which shall be assessed on an agreed periodic basis, if any.
Collaterals must be insured under a Shariah-compliant insurance policy, if any.
Granting facilities is subject to Kuwait Finance House (Formerly Ahli United Bank) evaluation and internal approvals.
Kuwait Finance House (Formerly Ahli United Bank) may reconsider its margin of profits on any financing transaction with credit facilities, provided that Kuwait Finance House (Formerly Ahli United Bank) informs the client of the new profit margins.
The client shall disclose to Kuwait Finance House (Formerly Ahli United Bank) all the parties associated with it economically or legally pursuant to the definition contained in the instructions of the Central Bank regarding the maximum limits of credit.