Al Manar Financing & Leasing Company has signed a US$51.37 million (KD15 million) Islamic financing agreement with Global Investment House (Global).
Mr Omar M El-Quqa, Executive Vice-President at Global, said: “the total Murabahah agreement is KD15 million for three years and Global was able to close the first tranche amounting to KD11 million with a annual profit rate 7.25% distributed semi-annually.” The second tranche – valued at US$13.7 million (KD4 million) – is now in the process of closing.
Al Manar, a closed-end Islamic financial institution, will use the money raised for future projects, as well as to double its share in the consumer financing market in Kuwait, which faces an growing demand for Islamic products.
Mr El-Quqa has said that Global is a supporter of Islamic financing and is working on establishing a secondary market for the sector, mainly Murabahah.