finance product to be launched --> Businesses within the Sultanate of Oman are set to be offered, for the first time, a unique Shari'ah compliant working capital finance product from Maisarah Islamic Banking Services of BankDhofar. The Bank has worked with the international Shari'ah advisory firm, IFAAS, (Islamic Finance Advisory & Assurance Services) to develop an innovative new financing product based on the Islamic finance principle of Mudaraba (profit-sharing), which is in accordance with Shari'ah Standards issued by industry body, AAOIFI. Sohail Niazi , Chief Islamic Banking Officer at Maisarah, BankDhofar, said, "We will be proud being the first bank to launch this award-winning product after getting all necessary approvals. This product has already received such an international acclaim and recognition and we believe it will further add value to our business and corporate banking customers. Maisarah's strategy is centred around being the best in Oman by offering excellent and innovative products and services to its customers and working with IFAAS has been a key element of this strategy." Following the launch of the product, business clients of Maisarah will be able to manage their day-to-day cash flow and working capital needs in a Shari'ah compliant way. The facility will be available to established large and medium size corporates and will enable them to avoid using short-term, interest-based financing products. IFAAS Director Shari'ah Compliance & Product Development, Shaher Abbas explains how the new product also offers potential to the wider Islamic finance industry, "Maisarah's working capital finance product, designed by IFAAS, is based on Mudaraba (profit-sharing), the most authentic Islamic finance principle. However, until now it was underutilised because of specific inherent risks. We have successfully mitigated those risks though new control measures, which are in strict accordance with AAOIFI Shari'ah Standards." "The new control measures can also be applied to Musharaka (profit & loss sharing) and Wakala (agency) agreements with minor amendments. This will offer new opportunities to Islamic banks, enabling them develop their product range in a simple and practical way."
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