UBL Ameen Islamic Banking Products & Services UBL Islamic Banking Ameen:

United Bank Limited, one of the largest private banks in the country has been awarded an Islamic Banking Branch license by the State Bank of Pakistan on December 16, 2006 AD (24 Ziqaad 1427 AH). As a consequence, the first UBL Ameen Islamic Banking branch will open its doors to the public in Karachi, on December 22, 2006 (29 Ziqaad 1427 AH). UBL Ameen is offering a range of Riba-free and Shariah-compliant banking products to a wider and increasingly aware customer-base in the country. Following a two-pronged strategy, the bank will reach out to customers through dedicated UBL Ameen Islamic Banking branches as well as specialist Islamic Banking counters at select UBL branches. The launch of Ameen Islamic Banking is a significant milestone for the Bank as well as a major move forward for Islamic Banking in Pakistan, in view of UBLs standing as one of the largest local banks in the country, with a network of over 1000 branches and a customer base of over 2.8million. Speaking on the occasion Mr. Hussain Mazhar, Head of the Islamic Banking Group at UBL stated: It is true that Islamic Banking represents a great opportunity for people in Pakistan. A growing number of customers today are looking for Riba-free and Shariah-compliant banking solutions. The launch of UBL Ameen is significant in that it will cater to a diverse group of customers, and will Inshallah lead to a faster development of Islamic banking, per se. He added: I am extremely grateful to the State Bank of Pakistan, whose continuing support and policy initiatives would result in Islamic Banking services becoming more readily available to a larger segment of the population in future. We at UBL Ameen welcome all religions and all sects to come and experience empathetic banking at our branches.

UBL Ameen started its operations in December 2006. And in a short span of time has established its presence in all major cities of Pakistan through 14 dedicated branches and 15 Islamic banking windows. It

has an experienced Islamic Banking team comprising knowledgeable and dedicated in-house origination and product development specialists engaged in the development of Shariah compliant solutions without sacrificing financial viability.

UBL Ameen Islamic products and services

AMEEN MURABAHA Murabahah is, in fact, a term of Islamic Fiqh and it refers to a particular kind of sale in which the seller sells the commodity to the buyer by disclosing cost and profit. The profit may be in lump sum or may be based on a percentage. The payment in the case of Murabahah may be at spot, and may be on a subsequent date agreed upon by the parties. Since Murabahah is a kind of sale, the basic rules of sale are applied for Murabahah transaction without which Murabahah transaction is not valid. These rules are: The subject of sale must be existing at the time of sale. The subject of sale must be in the ownership of the seller at the time of the sale.

The subject of sale must be in the physical or constructive possession of the seller when he sells it to another person. In the light of the aforementioned principles, UBL Ameen can use the Murabaha as a mode of finance by adopting the following procedure:

WORKING PROCEDURE
First: The client and UBL Ameen sign MoU whereby the institution promises to sell and the client promises to buy the commodities on an agreed ratio of profit. This agreement specifies the limit up to which the facility may be availed..

Second: When a specific commodity is required by the customer, UBL Ameen appoints the client as his agent for purchasing the commodity on its behalf; therefore an Agency Agreement is signed by both the parties. Third: The client purchases the commodity on behalf of UBL Ameen and takes its possession as an agent of UBL Ameen. Fourth: The client informs the bank that he has purchased the commodity on his behalf, and at the same time, makes an offer to purchase it from the UBL Ameen. Fifth: UBL Ameen accepts the offer and at this point, the sale is concluded whereby the ownership as well as the risk of the commodity is transferred to the client.

AMEEN LJARAH
At UBL Ameen, the mode of Ijarah is used to meet medium or long term financing needs of the customer by giving the asset to the customer on rental basis and at the end of tenor; the same is sold to the customer. Key Features Flexibility with the proportion of security deposit required for Ameen Ijarah. Ameen Ijarah facility can be availed for various tenors depending on the requirement of the client. Ameen Ijarah provides you security as the ownership and the risk of the leased asset remains with the bank. Flexible payment frequencies can be set for the rentals. Both fixed and variable rental options are available.

Diminishing Musharaka
To do Shariah-compliant business, we offer Ameen Diminishing Musharakah Product. It is a form of partnership in which UBL Ameen and the customer will jointly purchase a property or asset This transaction starts with the formation of a partnership (Shirkat-ul-Milk), after which buying and selling of the equity takes place between the two partners. After becoming partners, UBL Ameen will lease out its share to the customer at agreed rentals.

Steps Involved In Diminishing Musharaka 1. Creation of joint ownership in the property or asset. 2. Leased out the property share of UBL Ameen to the customer on rent. 3. Buying of units (share of UBL Ameen) by the customer periodically.

AMEEN AUTO IJARAH(LEASE)

UBL Ameen transfers the usufruct of a particular vehicle to another person in exchange for a rent claimed from him."Ijarah", a term of Islamic fiqh, means 'to give something on rent'. The benefits include: Ameen Auto Ijarah Financing will provide its customers an attractive offering with a wide range of financing options:

1st rental payable on delivery of car Free Islamic Insurance (Takaful) Free Car Registration Free Tracker Installments payable matched with your cash flow Ijarah of new and used cars (local and imported) No hidden charges Tenor 1 to 5 Years