Islamic Banking
Shari’ah Affairs
BSF follows a robust Shari’ah governance mechanism/regulation to ensure that all our products and services are duly accredited and in line with Shari’ah principles.
We perform clear policies, procedures and controls that are approved by our Internal Shari’ah Committee to facilitate business activities in a manner that is always compliant with the Islamic Shari’ah.
BSF Shariah Committee Members
The Shariah Board at BSF is the main Shariah governor in the bank aiming to ensure the bank’s compliance with the Islamic Shariah principles in accordance with the requirements of SAMA, and undertakes the supervision of all Shariah compliant businesses, activities, products and services. The Shariah Board issues fatwas and resolutions that are binding upon BSF.
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Dr. Saleh bin Fahd Al-Shalhoub (Chairman of the Shariah Committee): -
Dr. Salah is a Sharia scholar who procured his PhD from Edinburgh University (UK) and Masters from Al Imam University (KSA). He has led a broad range of engagements in the US, Europe, and the GCC, focusing on banking and investment products, real-estate transactions , insurances, listed securities, and private equity funds. His product-based experience spans to sukuks, home mortgages, leasing, SME financing and asset management.
He is currently a faculty member at the Saudi Electronic University in Riyadh. Before that, he was a faculty member and director of the Islamic Banking and Finance Centre at King Fahd University of Petroleum and Minerals in Dhahran. He wrote many research and articles related to the Islamic banking sector that were published in many newspapers.
Apart from his academic experience, he is a member of the internal Shari’ah Supervisory Committee for a number of institutions offering Shariah compliant financial services.
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Dr. Salah is a Sharia scholar who procured his PhD from Edinburgh University (UK) and Masters from Al Imam University (KSA). He has led a broad range of engagements in the US, Europe, and the GCC, focusing on banking and investment products, real-estate transactions , insurances, listed securities, and private equity funds. His product-based experience spans to sukuks, home mortgages, leasing, SME financing and asset management.
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Dr. Salim Ali Al-Ali (Member of Shariah Committee): -
Dr. Salim Ali Al-Ali is an assistant professor at the Department of Sharia and Islamic Studies at the College of Law at the United Arab Emirates University (UAEU), where he teaches a spectrum of courses related to Islamic law and Islamic banking. He had received his PhD from University of London in the United Kingdom. Dr. Al-Ali was also a part-time lecturer at the BPP Law School in London, UK.
Apart from his academic experience, he is a member of internal sharia supervision committees for a number of institutions offering Islamic financial services including Abu Dhabi First Bank, HSBC and Standard Chartered. He participated in a number of international conferences on various issues pertaining to the law of Islamic finance, Islamic financial products, and legal and regulatory aspects of developing Islamic financial markets, including those conferences held by Harvard University and University of Cambridge.
He is the author of the book entitled ‘Raising Capital on Sukuk Markets: Structural, Legal and Regulatory Issues’.
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Dr. Salim Ali Al-Ali is an assistant professor at the Department of Sharia and Islamic Studies at the College of Law at the United Arab Emirates University (UAEU), where he teaches a spectrum of courses related to Islamic law and Islamic banking. He had received his PhD from University of London in the United Kingdom. Dr. Al-Ali was also a part-time lecturer at the BPP Law School in London, UK.
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Dr. Hisham bin Abdulmalik Al Al-Sheikh (Member of the Shariah Committee): -
A professor of comparative fiqh and Shariah regulations previously at the Higher Institute of Judiciary at Imam Muhammad bin Saud Islamic University. He previously held the position of Shariah advisor in many financial institutions and entities. He participated in the preparation and formulation of the Shariah rulings code in the financial transactions section under the chairmanship of one of the subcommittees and then participated in the review committees for the Shariah rulings code. He has many printed publications and research in the judiciary and financial transactions field.
His interest is focused on providing consultations on commercial and financial issues in particular, corporate issues and drafting contracts, and in the field of conformity and compliance with financial companies in general, and carrying out Sharia review, Sharia financial auditing and Islamic financial dealing systems that conform to Sharia standards. Professor Dr. Hisham Al-AlSheikh also has the ability to engineer contracts and agreements and determine their legal status.
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A professor of comparative fiqh and Shariah regulations previously at the Higher Institute of Judiciary at Imam Muhammad bin Saud Islamic University. He previously held the position of Shariah advisor in many financial institutions and entities. He participated in the preparation and formulation of the Shariah rulings code in the financial transactions section under the chairmanship of one of the subcommittees and then participated in the review committees for the Shariah rulings code. He has many printed publications and research in the judiciary and financial transactions field.
Al Qudwah Al Hasnah Program
An initiative created by Shariah Affairs Division in 2019, for qualifying new Shariah Scholars to be future Shariah Committee Members in financial institutions, through their participation in live Shariah committee meetings and providing intensive courses in banking products and services for a period of two years. Thereafter, scholars will be qualified candidates to work as a Shariah Committee member in any financial institution.
Personal Banking products
1. Current account:
BSF is offering a Shariah compliant current account enabling users to make withdrawals and deposits, and preform daily transactions.
2. Murabaha Investment (i.e. Deposits):
A Shariah-compliant investment tool/product, used as an alternate for the conventional term deposits, with different investment periods, in accordance with your need.
3. Murabaha Home Finance:
Own your dream home with BSF with Shariah-compliant Murabaha financing.
4. Murabaha Personal Finance:
Versatile Shariah compliant financing, designed to fit your needs.
5. Tawarruq Personal Finance:
Shariah compliant finance, with competitive profit rates.
6. Islamic Credit Cards:
A wide range of Shariah compliant credit cards designed to fit your lifestyle with variance of benefits.
7. BSF Jana:
Collect points and earn rewards with every transaction.
Business Banking Products
1. Islamic Current account:
BSF Shariah compliant current account enabling the client to conduct his/her daily transactions easily.
2. Murabaha Investment:
Shariah compliant structure, designed to invest your funds and to get a high return.
3. Tawarruq Finance:
Improve your working capital with competitive profit rate.
4. Islamic Trade Finance:
Assurance of timely payments from your buyers and minimized concerns about paying your suppliers, along with our letter of Guarantees.
Treasury Products
A wide range of Shariah compliant solutions designed to help your investments in Debt Capital Markets and foreign exchange grow. Our Shariah compliant hedging solutions help you manage currency risk, profit rate risk and commodity price risk with ease.
Common FAQ
How Tawarruq works?
The bank will purchase commodities from a supplier/broker (first sale) and sells them to customer (second sale). The customer then, will sell the commodities to a different supplier/broker to get the required cash (third sale).
What are the types of commodities that could be used in Tawarruq?
All types of commodities except for gold and silver are suitable for Tawarruq but usually metals, palm oil and others are being used.
What is the role of brokerage in Tawarruq?
If the Tawarruq is done through an online trading platform, a broker will sell the commodities to the Bank whilst another broker will purchase them from the customer or customer’s agent to complete the process.
When would Tawarruq be considered invalid?
Tawarruq is considered invalid in cases where there is a Shariah violation, such as:
1- There is no existence of commodities while the Tawarruq contract is already executed.
2- Selling the commodity by the bank to the customer without actual or factual ownership of the commodity.
3- Selling the commodity to the same supplier twice.
How can the bank ensure that there is no Shariah violation while executing Tawarruq transactions?
Every sale in Tawarruq is properly executed and documented to evidence that the commodities exist, the ownership has been transferred, actual or factual possession, and other requirements apart from conducting Shariah audit on every stage of the transaction.
What method underlies of Ijarah contract?
Ijarah is a finance agreement where the customer will own the asset at the conclusion of the finance contract. This is otherwise known as Ijarah Muntahiya Bil Tamleek.
What can we finance on Ijarah?
Usufruct of any Shariah compliant assets or services that can be financed by BSF on Ijarah basis.
From what time does Ijarah become effective?
Ijarah became effective when the asset serviced is made available to the consumer.
Who bears the cost of major maintenance and insurance?
Since BSF is lessor, BSF must bear the cost related to major maintenance and damage insurance.
How can the consumer receive the asset after settling his/her outstanding amounts under the Finance Agreement?
Once all payments have been made in accordance with the Finance Agreement, the bank will discharge the leased asset to the customer as a gift or for SAR1.00.
What is the mechanism of Murabaha Investment?
Murabaha Investment is a reversed Tawarruq transaction, in which a customer will purchase a commodity from a broker (broker 1) for the principal amount. Then sells the commodity to BSF. Thereafter, the bank sells the commodity to another broker (broker 2). At maturity (payment date), the bank will pay the proceeds (principal+ profit) to the customer.
What are the documents required to place a Murabaha deposit?
Murabaha Investment Agreement. At the time of execution, offer and acceptance notices and confirmation need to be signed.
Are partial withdrawals allowed in Murabaha Investment?
Partial withdrawal is not allowed. Customer can pre-close his/her deposit and do a new placement with the remaining amount.
Are pre-closures of Murabaha Investment allowed?
The Customer may request early payment of the Deferred Payment Price prior to the Deferred Payment Date, which may be accepted at the sole discretion of the Bank. If accepted by the Bank, the Bank and Customer shall agree on a revised Deferred Payment Price to be paid by the Bank on the early payment date requested by the Customer and accepted by the Bank.
What are the prohibited activities and practices in Shariah (Transactions, Products, Services, Contracts)?
1- All types of Riba (Usury):
A. Riba al-Fadl: it is for the exchange of a group of commodities such as (gold, silver, wheat, barley, dates and salt). For example, exchange of gold for gold in a different quantity and in a futures exchange. It is permissible if the quantity is equal with immediate exchange. However, if the commodities are different, for example gold for silver, only immediate exchange is required to be Shariah compliance.
B. Riba Al-Nasi’ah: delaying the debt from the debtor against adding interest to the debt amount.
2- Gharar: uncertainty from the seller about the goods being bought by the purchaser and selling what does not exist.
3- Al-Maysir: Any income obtained from and by gambling. Investing money in non Shariah Compliant activity or commodities/products (alcohol trade, gambling, pork trade, etc.)
Tawafoq Islamic Branches
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10TH STREET THUGBAH ( Mishal GS )
Address:
Location: 10TH STREET THUGBAH ( Mishal GS )
Working Hours :
District: AlThuoqbah
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Function:العنوان:
الموقع: 10TH STREET THUGBAH ( Mishal GS )
ساعات العمل :
الحي: AlThuoqbah
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المهمة: -
Abha
Address: Tobija Street, 348
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Phone: (017) 225-1052
Fax: (017) 225-1268
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Function:العنوان: Tobija Street, 348
الموقع:
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الحي:
الهاتف: (017) 225-1052
الفاكس: (017) 225-1268
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Abha Branch
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City: ABHA
Region: Western
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المدينة: ABHA
المنطقة: Western
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Abha Branch
Address: Umar Ibn Abdulaziz
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City: ABHA
Region: Western
Function:العنوان: Umar Ibn Abdulaziz
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المدينة: ABHA
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Abha Main Branch
Address: Umar Ibn Abdulaziz
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District: Thirah
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City: ABHA
Region: Western
Function:العنوان: Umar Ibn Abdulaziz
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الحي: Thirah
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المدينة: ABHA
المنطقة: Western
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ABHA MAIN BRANCH
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Location: ABHA MAIN BRANCH
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District: Thirah
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الموقع: ABHA MAIN BRANCH
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الحي: Thirah
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ABHA MAIN BRANCH
Address:
Location: ABHA MAIN BRANCH
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District: Thirah
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الموقع: ABHA MAIN BRANCH
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الحي: Thirah
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ABHA MAIN BRANCH
Address:
Location: ABHA MAIN BRANCH
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District: Thirah
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الموقع: ABHA MAIN BRANCH
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الحي: Thirah
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ABHA MAIN BRANCH
Address:
Location: ABHA MAIN BRANCH
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District: Thirah
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Function:العنوان:
الموقع: ABHA MAIN BRANCH
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الحي: Thirah
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