Sharia-Compliant Forward Sale with El Salam
At Algerian Union Bank (AUB), we offer secure and diversified financing solutions to support your projects. El Salam is a Sharia-compliant forward sale contract that allows the buyer to pay in advance for goods to be delivered at a future date.
Why Choose El Salam?
- Planning: Enables better financial and production planning.
- Liquidity: Provides immediate cash flow to the seller to finance production.
- Security: Ensures a secure transaction with clearly defined terms.
- Compliance: Respects Islamic principles, with no involvement of Riba (interest).
Characteristics of El Salam Financing
- Product type: Forward sale compliant with Islamic finance.
- Compliance: Conforms to Sharia principles, with no involvement of Riba (interest).
- Eligible goods: Agricultural products, raw materials and other goods.
- Payment: Full payment in advance.
- Delivery: On a specified future date in the contract.
- Quantity and quality: Clearly defined in the contract.
The El Salam financing from Algerian Union Bank facilitated our planning and provided us with the necessary funds in advance. The transaction was secure and compliant with our Islamic values.
How Does El Salam Work?
The process begins with the negotiation of the contract between Algerian Union Bank and the seller, defining the terms, quantity, quality, and delivery date of the goods. The payment is made in full in advance by the buyer, enabling the seller to finance the production of the goods. Once the goods are produced, they are delivered on the future date specified in the contract. This model ensures a planned and secure transaction for both parties.