| Mudarabah
QIIB provides project financing or Mudarabah to customers in the construction/ project development business. The bank may finance projects awarded to the contractor provided the project owner is a government, semi government entity, or other credit-worthy public companies.
Identical projects financed under Mudarabah contracts are usually state infrastructure projects such as roads, sewer lines, power stations, beautification and landscaping of public areas, etc.
Mudarabah could also be utilized to finance the development of real estate projects including residential compounds and commercial properties including retail and office buildings. Details of the project including feasibility studies, technical and financial analysis in addition to analysis of the project owner and the contractor is performed by the bank to determine viability.
Once approved, the financing is granted based on a profit-sharing formula.
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