Our commitment to Shariah compliance
Islamic Shariah forms the core of our work at Owais. It is not just a slogan but a way of life that we apply in all our dealings, adhering to its rulings and principles in all our business activities.
Why is Owais Sharia-compliant?
Sukuk financing compliant with Sharia is done through Murabaha: a short- and long-term financing mechanism that allows clients to obtain the necessary liquidity. This model is based on the principle of selling at cost price with an agreed-upon profit margin, ensuring compliance with Islamic rulings in financial transactions.
This financing mechanism relies on the principle of deferred payment, where a direct contract is established between the financier and the borrower. The investor provides the required funding at a value lower than the original agreed amount to be repaid. Later, the beneficiary repays the full amount, which includes the principal along with pre-agreed financing fees. This difference between the amount provided and the amount repaid constitutes the profit for the investor. This model allows the beneficiary to obtain immediate liquidity while ensuring an investment return for the financier.
Work Mechanism
How Murabaha Works
Each financing transaction on the Owais platform is carried out through a complete Murabaha process, including contracts for investors and companies, as well as legal and Sharia procedures.
Funding Collection
After the company's financing request is approved, the opportunity is presented to investors on the Owais platform. The process of raising the required amount begins, with Owais being authorized by the participants to complete the Murabaha process by purchasing and selling goods in accordance with Sharia regulations.
Buying goods and transferring ownership
Upon completion of the funding, Owais purchases a commodity with the collected amount. The ownership of the commodity is transferred from the seller to Owais as an agent for the investors, under documented contracts that ensure everyone's rights.
Sell the commodity and send the cash to the company
Owais, acting as the agent for the financed company, sells the commodity to a third party for the total amount collected plus the murabaha profit margin. Finally, the cash amount is transferred to the beneficiary company.
Sharia
Sharia Supervisory Board of Owais Company
Explore a diverse range of investment offerings at Owais, catering to various risk tolerance levels, from relatively low-risk and safe options to high-return investments.
Sharia Advisor
The Sharia Review Office has been selected by Owais Capital (the 'Company') as the Sharia Advisor to guide it on issues related to the compliance of its products with Islamic law and adherence to its principles. The Sharia Review Office is a Middle Eastern-based institution with a global scholarly platform that includes 35 prominent Sharia scholars. These scholars cover major Islamic markets globally, including Malaysia, Saudi Arabia, Algeria, Egypt, Qatar, the United Arab Emirates, Sudan, and Bahrain.
Sharia Audit Office Services
Licensed by the Central Bank of Bahrain, offering various services including Sharia auditing, structuring, issuing compliance certificates (fatwas), and Sharia audit services. Sheikh Mohammed Ahmed has been appointed as a member of the Sharia Supervisory Board to review and approve Owais' product documents and activities. The Sharia Audit Office will form a team for Sharia auditing, tasked with ensuring that operations and investments comply with Islamic Sharia principles. This team will provide an annual report to the Sharia Supervisory Board, the Board of Directors, and stakeholders.
Confirming product compliance with Islamic Sharia principles
Upon completion of the annual Sharia audit report, the Sharia review office will issue a special report for the Sharia Supervisory Board. This report, addressed to the Board of Directors, will confirm the extent of compliance of transactions related to the company's products with Islamic Sharia rules during the past year.