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New product launched by KFH-Bahrain

July 2, 2014

MANAMA: Kuwait Finance House - Bahrain (KFH-Bahrain) yesterday announced the launch of a new personal financing product based on a Sharia compliant "tawarruq" facility.

"Tamweely" allows individuals to obtain financing of up to BD100,000 with a repayment period of up to 84 months.

It is based on the international commodity trading of palm oil offered by KFH-Bahrain in partnership with one of its international brokers at the Malaysia Bourse.

According to an Islamic finance expert, "tawarruq" is a transaction where one party buys some goods on credit at a marked-up price and sells the same at a lesser value for the purpose of getting cash.

"As demands increase in life, individuals will have many personal goals that they wish to achieve and they will need suitable financing solutions that can help them reach their goals," KFH-Bahrain executive manager and banking group head Khalid Rafea said.

"This new product with its unique feature allows our customers to experience the tawarruq process and follow its procedures in real-time.

"They can be confident that the Malaysia Bourse is governed by an independent Sharia body that monitors and ensures the proper transactions and trading of the approved commodities between the clients and suppliers," he added.

Mr Rafea said the bank conducted extensive analytical research which went into the development of the product.

"We have combined the best of our accumulated experience and international partnerships in order to provide clients with distinctive banking services that meet their aspirations," he added. The product is available to people of all nationalities, KFH-Bahrain said..

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Source: Gulf Daily News (Bahrain)

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