Osoul purchases a certain commodity (such as iron) from a supplier (the iron factory) ‘subsequent to a prior request made by the client. The commodity (iron) is then transferred to Osoul’s warehouse. The actual inspection is carried out by the responsible employee. The commodity is photographed for the client after it has been transferred to Osoul’s warehouse, where it is considered as a possession of Osoul. A finance contract is signed with the client, who is given a copy of the inspection report and the photograph. Then, the client can dispose of the financed commodity as he/she likes, or issue a special power of attorney for the supplier (the iron factory) to sell the commodity (iron) after signing the contract to a “fourth party” in the local market
How to Apply Islamic Tawarruq
How to Apply Islamic Tawarruq
This is the Sharia advantage of the product. What distinguishes us from other finance companies in the local market, is that the commodity (iron) is sold to the same supplier, which is contrary to Islamic Shariah from the viewpoint of most Shariah scholars