Business Banking

DBI  Business Account offers a facility for safe custody of your cash. This facility, which is based on the Wadiah contract, enables you to wisely plan your monthly expenditure and allows you to manage your financial needs without involving cash.

Business Banking Account

Overview:

Islamic Business Account
Our DBI Islamic Business Account allows you to bank in accordance with Shariah law.It is a completely interest-free way to manage your funds and was created by the Islamic finance experts in Dahabshil Bank International Committee.

Features and benefits

  • Deposit funds into an account that doesn’t attract or charge interest.
  • Ensure your money is never used for any non-Shariah approved activities.
  • Keep a minimum balance of just $100 in your account each month.
  • Access your money instantly, as and when you need it.
  • Conveniently make payments using a MasterCard debit card.
  • View your account information and make payments online.
  • Make and receive business payments using a cheque book and pay in book.
  • access to one of the largest branch networks of any bank in East Africa.
Minimum Opening Minimum USD $10 initial deposit
Eligibility Limited Companies, Partnership, Sole trader, LLP, Charities, NGO’s and Government departments.
Types of Account Business Account
Savings Account
Contract Wadiah
Identification Documents
  • A valid proof of Identity of each signatory (current Driver’s License/ National ID/ International passport)
  • Proof of address – utility bills for the 3 previous months/certificate of residence/ tenancy agreement
  • Two passport size photo’s
Download Business account opening from here.

Trade Financing

Letter of Credit (LC)

LC is a written undertaking by the Bank at your request as a Buyer/Applicant to pay the Seller/ Beneficiary a certain sum of money as stipulated in the LC provided that the Seller/Beneficiary complies with the terms and conditions of the LC.
In an LC issued under Murabahah contract the goods purchased will be sold to you at a marked up price for a deferred payment. Alternatively on negotiation of the LC you may pay the negotiated amount at cost.

Benefits

  • No ‘transit interest’ charges as payment to Seller/Beneficiary only upon acceptance of documents
  • No hidden costs
  • Provides platform for both parties to agree trade terms and efficient payment arrangement

Shariah Contracts / Concepts for Trade Financing
Murabahah (Cost Plus)

Under Murabahah contract, the Bank sells the goods to you at the Bank’s selling price which comprises the principal amount (i.e. the cost price of the goods) plus Bank’s profit payable by you.

Ujrah (Fee)

It refers to commission or fee charged for services rendered by the Bank.

It refers to commission or fee charged for services rendered by the Bank.

This is a financing facility under the Murabahahcontract, to finance domestic or international trade against Letter of Credit. It enables you to settle payment in a convenient manner and facilitates convenient cash flow management. It provides up to 100% financing of the value of the invoice.

Trade Working Capital Financing

A financing facility to finance domestic or international trade against Letter of Credit issued by the Bank.

Benefits

  • Enables you to settle payment obligation to the seller or get immediate reimbursement on the advances made to the supplier
  • Facilitates convenient cash flow management of a business by having a fixed rate financing nature
  • Provide up to 100% financing of invoice value
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Shipping Guarantee

Shipping Guarantee is a facility where the Bank indemnifies and guarantees the shipping company for the release of goods to the buyer/importer without the
presentation of the original Bill of Lading. Issued under the Kafalah contract, it can be defined as a surety provided by a party to the owner of the goods, who had placed or deposited his goods with the shipping company, whereby any subsequent claim by the owner for his goods must be met by the guarantor (the Bank).

Benefits

  • You can take delivery of goods immediately
  • You will not have to incur demurrage and warehousing charges
  • Enables you to sell the goods without delay

Bank Guarantee

Bank Guarantee is an irrevocable written obligation issued under contract of Kafalah by the Bank to assure payment in case of demand by beneficiary. The Bank in essence, acts as a guarantor.

Benefits

Our BG is widely accepted and can be leveraged to enhance your reputation

  • Asset based financing
  • Leasing

Leasing is a facility based on the Shariah contract of Ijarah, which allows you to lease equipment, etc. from DBI on rental for the usage of equipment during the lease period. The total leased rental, which is fixed throughout the tenure, comprises the original cost of
equipment and the Bank’s profit margin.

Equipment & Commercial Property Financing

Murabahah or Sale on deferred payment basis offers funding for property acquisition, refinancing of assets and to facilitate other business requirements. Assets acceptable for financing are plant/equipment, commercial property and land.

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Commercial Investment

Real Estate

With our Real Estate Financing, we offer a comprehensive Shariah Compliant Home Financing solution that best meet your financing needs.

Benefits:

  • Margin of Financing (MOF) up to 90%
  • Financing tenure of up to 24 months.
  • Competitive profit rate
  • A Shariah-compliant home financing.

Vehicle finance

Our Vehicle Financing is there to ease your burden while owning your dream vehicle.

Benefits

  • Selling price : fixed and known
  • No hidden or extra charges imposed
  • Fast approval

International Currency – FX

Project Financing

Leasing

Leasing is a facility based on the Shariah contract of Ijarah, which allows you to lease equipment, etc. from DBI on rental for the usage of equipment during the lease period. The total leased rental, which is fixed throughout the tenure, comprises the original cost of equipment and the Bank’s profit margin.

Project Financing/Manufacturing/Construction (Istisna’)

Istisna’ contract refers to an agreement to sell to or buy from a customer a non-existent asset which is to be manufactured or built based on the specifications outlined by the ultimate buyers at an agreed predetermined selling price and to be delivered on a specific future date.

Type of development includes housing, building and construction of commercial and industrial building/project.

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Identification Documents

  • A valid proof of Identity of each signatory (current Driver’s License/ National ID/ International passport/ Student ID card-for students)
  • Proof of address – utility bills for the 3 previous months/certificate of residence/ tenancy agreement
  • Two passport size photo’s
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MusharakahMutanaqisah:

MusharakahMutanaqisah (MM) means diminishing partnership with an imbedded Ijarah (lease) element. Itisa form of Musharakah where the financier and the client participate in a joint commercial enterprise or property. This enterprise is converted into undivided ownership of both the financier and the client. Over certain period the equity of financier, divided into equal value units, is purchased by the client. And ultimately the client becomes the sole owner of the enterprise.

Modus Operandi

  • Customer identifies the asset with price.
  • Seller provides details, terms & conditions.
  • Customer approaches the bank asking for MusharakahMutanaqisah financing.
  • Bank approves with terms & conditions i.e. profit sharing, loss sharing and payment of capital portion for agreed period.
  • Customer & bank contribute the capital i.e. 10:90.
  • The asset is leased to the customer based on monthly rental.
  • Customer pays the rental along with fixed capital portion.
  • Monthly rental amount will be jointly shared among bank & customer according to the % share-holding at particular time i.e. changing as customer redeems the bank’s capital portion. Thus customer sharing ratio gradually increase after each rental.
  • Transfer of ownership will take place upon entire payment is made and eventually the asset is fully-owned by the customer.
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Istisna’:

Istisna’ means sale on order i.e. the sale of goods by way of placing an order where the price is paid in advance or progressively but the assets are manufactured and delivered at a later future date.

Modus Operandi

  • The buyer (Customer) places an order to purchase an asset (e.g. building, house) to be delivered in the future.
  • The buyer requires the seller (Bank) to construct the asset based on the specification that stipulated in the sale and purchase contract that agreed by both of the contracting parties. These specifications include the nature, type, quantity of the asset and also delivery date.
  • Then, both of the parties decide and agree with the sale and purchase price and any changes cannot be made after that.
  • The payment can be made either on spot cash or in installments. It’s not required for the buyer to pay the full price at the time of contract.
  • Lastly at the delivery date, the seller will deliver the order to the buyer.
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Murabaha

Murabahah or murabaha, (Arabic مرابحه): a sale transaction, compliant with Shariah, where the bank (seller) expressly mentions the cost it has incurred on the commodities to be sold and sells it to a customer by adding some profit or mark-up, which is known to the customer.

Modus Operandi

  • The bank first determines the requirements of the customer in relation to the asset to be acquired, period and manner of repayment.
  • The bank purchases the asset concerned
  • The bank subsequently sells the said asset to the customer at an agreed price which comprises:
    • The actual cost of the asset to the bank;
    • The bank’s margin of profit
  • Customer settles the payment in lump sum or in installments within the period and in the manner so agreed
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