Barakah Investments launch two products

First Barakah Investments Ltd., a subsidiary of ABC Group of Companies on Tuesday launched two products under the profit sharing concept of Islamic Shari'ah for the pawn industry and the bond market.

M.I. Mohamed Razeek

Rahn, the alternative to pawning under the Islamic Shari'ah is based on providing financial assistance to the less privileged in the country.

Managing Director, First Barakah Investments Ltd., M.I. Mohamed Razeek said at a time when the country is facing a severe financial crisis a product of this nature will help the less fortunate to overcome their financial difficulties.

The bank said gold jewellery will be kept as security and when the loan has been paid according to the fixed period the security will be returned.If the money cannot be repaid due to an unforseen reason the security will be disposed of and the excess money on the sale will be returned to the client.

The company hopes to commence Rahn services at the office set up at Maradana shortly. "Islamic financing which advocates transparency, shared profit, collaboration with the customer and non interest has been recognised the world over and today it is popular among many Western countries as an effective means to avert financial riddles", Razeek said. He said due to the demand for more Islamic financing services Barakah Investments will set up branches in Beruwela and Kattankudy by the end of the month.

HSBC, Citi, Standard Chartered in UK and USA are offering the Islamic financing concept to its clientele.With the failure of many conventional banks the Islamic banking concept is accepted as safe way for investments.

(LF)