Islamic banking, a proven expertise of Crédit Agricole CIB
A full range of Shariah compliant products and services
Crédit Agricole CIB, a recognised leader in the field of Islamic banking has been offering a broad range of Islamic financial services for many years.
Headquartered in Dubai at the Dubai International Financial Centre with a global presence, the team works across all business lines to create financial instruments that allow Crédit Agricole CIB’s clients to invest and manage risk in today’s global financial markets using Shariah-compliant structures.
Crédit Agricole CIB’s Global Islamic Banking team has been involved in some of the most prominent projects in the Middle East that have earned the Bank an outstanding reputation in the Islamic Finance arena. By providing access to Islamic structures for Islamic and conventional clients Crédit Agricole CIB facilitates the flow of capital between these two distinct financial sectors.
Crédit Agricole CIB islamic financing
Crédit Agricole CIB provides its clients with the optimum choice of financial products all delivered with personalised attention and quality service. We partner with clients to provide tailor-made solutions to assist them in achieving their goals.
Syndicated financing
Crédit Agricole CIB is one of the leading players in the Islamic syndicated financing market. The syndication team has the knowledge and experience to formulate, structure, and tailor syndication strategies to meet clients’ funding requirements. The Bank arranges and underwrites a variety of financing instruments for both financial institutions and corporates. Crédit Agricole CIB is well positioned to handle all Shariah related issues in respect of a debt issuance. Its comprehensive database of syndicate banks means it can execute assignments within extremely tight deadlines.
Project & Structured Finance
Crédit Agricole CIB is an international leader in project and structured financing, ranking regularly amongst the top five institutions in the world. Committed to meeting clients’ financing needs and objectives, the Bank has a proven track record in sourcing and structuring financing for complex international projects in power generation, infrastructure, water supply and treatment, oil and gas and mining. Crédit Agricole CIB has closed several successful transactions in the Gulf to finance infrastructure, natural resources and energy projects. Project finance advisory is also a key function of the Bank for Islamically structured Project Finance deals.
Export & Trade Finance
Crédit Agricole CIB assist its clients in running their cross-border business more efficiently, and offers a full range of trade finance services, including trade and cash facilities, import-export and structured trade finance, pre-export and receivables financing. Its extensive branch network and the quality of correspondent relationships ensure worldwide coverage.
Bilateral facilities
Crédit Agricole CIB provides financing to its clients through Ijara (lease) or Murabaha* (cost plus sale of commodities) structures. The Murabaha structure can also be employed for structured commodity finance.
Crédit Agricole CIB can provide Islamic products to facilitate trade and cash management. The Bank can also finance international and domestic market expansion, receivables and any other trade-related financing needs.
*Murabaha: A form of credit which enables customers to make a purchase without having to take out an interest bearing loan. The bank buys an item and then sells it on to the customer on a deferred basis.
Islamic capital markets detailed offer
Crédit Agricole CIB is at the forefront of product development and innovation, helping our clients to manage risk effectively and to optimise their financial performance. We work closely with clients to deliver bespoke solutions that meet their specific needs in a broad range of regional currencies.
Currency structures
Crédit Agricole CIB is an active participant in the global currency markets offering an extensive range of foreign exchange products. The Bank has developed a range of Islamic investment and risk management products including, Cross Currency Swaps*, currency outrights and currency options.
*Cross Currency Swaps: This Islamic swap allows investors to mitigate the risk associated with any future fixed or floating rate payments through Murabahas between Crédit Agricole CIB and the investor.
Profit rate structures
Crédit Agricole CIB provides borrowers with a wide range of hedging and cost reduction solutions including Profit Rate Swaps (Shariah compliant interest rate swaps).
Crédit Agricole CIB offers cross currency swaps, Islamic FX swap, FX Wa'ad* (FX options), and Islamic FX Outright* - based on unilateral Wa’ads.
*FX Wa'ad: Shariah compliant foreign exchange option. Through use of a Wa'ad (unilateral promise) clients secure the right to exchange currencies with the bank at an agreed rate on an agreed date in the future. Client pays a fee to the bank to secure the promise. This product is for hedging or cost reduction purposes only and not for speculation.
*Islamic FX Outright: Shariah compliant foreign exchange outright. Through unilateral Wa'ads, Crédit Agricole CIB and the investor undertake to exchange two currencies on a future date at a pre-agreed rate.
Treasury & Structured products
Crédit Agricole CIB offers a range of capital protected investment products that provide investors with an opportunity to enjoy the performance of a range of Shariah compliant underlying assets classes. In addition, Crédit Agricole CIB is a leading provider of high yield investment structures in deposit format.
Debt capital markets
Crédit Agricole CIB is a major player in the debt capital markets on a worldwide basis. For Sukuk* (Islamic Bond) its dedicated team of originators located in the Gulf works with clients to provide the best solution to tap this important source of liquidity.
*Sukuk: Islamic Bond. Similar to an asset backed bond, Sukuk is a form of commercial paper that provides an investor with ownership in an underlying asset, and a return based on this ownership. The issuing entity needs to identify existing assets to sell to the Sukuk investors, via transference to an SPV.
Crédit Agricole CIB Shariah advisory board
Crédit Agricole’s Shariah Advisory Board consists of independent Shariah scholars who advise Crédit Agricole on matters related to Shariah and are committed to the Bank for the long term. The board is comprised of:
- Sheikh Nizam S. Yaquby : Sheikh Nizam S. Yaquby is an internationally acclaimed scholar in the Islamic banking industry. He has been a teacher of Tafsir (Interpretation of the Quran) since 1976, and has advised a number of banks and financial institutions on matters pertaining to Islamic banking and finance, acting as an independent consultant based in Bahrain. He holds a BA in Economics and Comparative Religion from McGill University (Canada).
- Dr. Mohamed Ali Elgari: Dr. Mohamed Ali Elgari is an expert at the Islamic Jurisprudence Academies of the Organization of Islamic Countries and the Islamic World League.
- Dr. Mohd Daud Bakar : Dr Mohd Daud Bakar currently sits as chairman of the Shariah Advisory Council of the Central Bank of Malaysia. In addition, he is a Shariah board member of various international financial institutions across the globe. Dr Bakar received his degree in Shariah from the University of Kuwait in 1988 and obtained his PhD from the University of St. Andrews, United Kingdom in 1993.
The scholars are renowned in the industry for their deep knowledge of both Shariah law and finance. They work closely with the Shariah Governance Unit and the Global Islamic Banking team to ensure the proper application of Shariah principles.
Find out more
Islamic banking has the same underlying purpose as conventional banking but it operates in accordance with the rules of Shariah. The basic principle of Islamic banking is the sharing of risk, profit and loss and the prohibition of riba (interest) and gharar (uncertainty).
Amongst the common Islamic concepts used in Islamic banking are Mudaraba (profit sharing), Wadiah (safekeeping), Musharaka (joint venture), Murabaha (cost plus financing), and Ijara (leasing).