Profile of Al Rajhi Bank
Al Rajhi Bank is a Saudi Arabian bank and the world largest Islamic bank by capital based on data in 2015. Al Rajhi established in 1957 and called as a major investor in Saudi Arabian business and is one of the largest that joint stock companies in the Kingdom. The first branches Al Rajhi Bank opened in Al Shmaisi in Riyadh in 1979. Now Al Rajhi Bank has over 600 branches and has 9600 number of employee. Its head office located in Riyadh with six regional offices. Abdullah bin Sulaiman Al Rajhi as a Al Rajhi Bank Chairman and Stefano Bertamini as a CEO. Al Rajhi Bank also has branches in Kuwait and Jordan, and a subsidiary in Malaysia. In the operation of product, Al Rajhi Bank offers a variety of banking services …show more content…
Al Rajhi Bank commits and accepts to pay against trade documents drawn in compliance with the letter of credit terms. In turn, Al Rajhi Bank’s credit worthiness replaces that of the applicant. Musyarakah works like a limited partnership between Al Rajhi Bank and customers who need to import goods and equipment but do not have the sufficient resources to fund the transaction.
The first thing about the feature and benefit that customer or the importer get after used the Musyarakah Letter of Credit – i is security to the exporter if there are risks involved or political concerns. Secondly, the importer ensures that payment will only be undertaken of the exporter complies with the terms and specifications of the letter of credit. Besides, the immediate notification to importer upon receipt of documentation and the importer can be know the improves his negotiating position through Al Rajhi Bank’s payment guarantee.
In this type of transaction, the customer would provide a defined portion of the funds required and Al Rajhi Bank would provide the remaining funds and issue Musyarakah Letter of Credit - i to facilitate the import of the …show more content…
For example, after the Musharaka Letter of Credit is opened after the goods arrive, there are three options available to the importer by Al Rajhi Bank is Al Rajhi will sells their share based on Musharaka concept to the customer on cash payment or deferred basis at an agreed margin or the customer sells its share to Al Rajhi Bank on a cash payment or deferred basis or both sell their shares in the market together. The Letter of Credit-i also serves as contract confirmation that seller will receive payment for the goods or services imported by
Al Rajhi Bank is a Saudi Arabian bank and the world largest Islamic bank by capital based on data in 2015. Al Rajhi established in 1957 and called as a major investor in Saudi Arabian business and is one of the largest that joint stock companies in the Kingdom. The first branches Al Rajhi Bank opened in Al Shmaisi in Riyadh in 1979. Now Al Rajhi Bank has over 600 branches and has 9600 number of employee. Its head office located in Riyadh with six regional offices. Abdullah bin Sulaiman Al Rajhi as a Al Rajhi Bank Chairman and Stefano Bertamini as a CEO. Al Rajhi Bank also has branches in Kuwait and Jordan, and a subsidiary in Malaysia. In the operation of product, Al Rajhi Bank offers a variety of banking services …show more content…
Al Rajhi Bank commits and accepts to pay against trade documents drawn in compliance with the letter of credit terms. In turn, Al Rajhi Bank’s credit worthiness replaces that of the applicant. Musyarakah works like a limited partnership between Al Rajhi Bank and customers who need to import goods and equipment but do not have the sufficient resources to fund the transaction.
The first thing about the feature and benefit that customer or the importer get after used the Musyarakah Letter of Credit – i is security to the exporter if there are risks involved or political concerns. Secondly, the importer ensures that payment will only be undertaken of the exporter complies with the terms and specifications of the letter of credit. Besides, the immediate notification to importer upon receipt of documentation and the importer can be know the improves his negotiating position through Al Rajhi Bank’s payment guarantee.
In this type of transaction, the customer would provide a defined portion of the funds required and Al Rajhi Bank would provide the remaining funds and issue Musyarakah Letter of Credit - i to facilitate the import of the …show more content…
For example, after the Musharaka Letter of Credit is opened after the goods arrive, there are three options available to the importer by Al Rajhi Bank is Al Rajhi will sells their share based on Musharaka concept to the customer on cash payment or deferred basis at an agreed margin or the customer sells its share to Al Rajhi Bank on a cash payment or deferred basis or both sell their shares in the market together. The Letter of Credit-i also serves as contract confirmation that seller will receive payment for the goods or services imported by