Bank AlJazira is focused on delivering a wide array of Islamic banking services to its clients, which includes trade services and trade finance products offered through specialized divisions. Alongside managing commercial operations, the bank has established a dedicated team to develop trade products and offer technical support to clients, both directly and indirectly. Clients benefit from exceptional service characterized by attentive customer care, swift service delivery, and competitive pricing.
Trade Services
At Bank AlJazira, our trade services are designed to support businesses engaged in import, export, and contract execution. We offer letters of credit, guarantees, letter of credit enhancements, and letter of credit collections, our digital channels are designed to streamline your experience with a focus on major trade products. Clients can conveniently access their transaction history and account status anytime, anywhere.
Services Offered
Letters of Guarantee
A letter of guarantee from Bank AlJazira is a promise that stands apart from the underlying commercial transaction between the company and the beneficiary. It is issued for the benefit of the beneficiary, ensuring that Bank AlJazira will promptly make payment upon receiving a request from the authorized party, as long as it meets the guarantee's conditions.
- Issuance of all types of letters of guarantee (bid bonds, performance bonds, advance payment guarantees, etc.), as well as shipping guarantees.
- Issuance of letters of guarantee within two hours of submitting the required documents.
- Preliminary Guarantee Letter (Tender Guarantee and Bid Bonds): Issued for participation in government and non-government tenders and bids to ensure the seriousness of the submitted offer and to verify the financial capability of the bidder.
- Final Guarantee / Performance Bond: Ensures the completion of the agreed-upon work with the bidders and guarantees proper execution and performance integrity.
- Advance Payment Guarantee: When a contract awarded to a client requires financial capabilities that are not available to them, they may request an advance from the contracting authority, provided they submit a bank guarantee of the same value and currency.
- Financial Guarantee Letter: A commitment from the bank to guarantee the client to the requesting party when the client is unable to meet the agreed-upon conditions for various purposes and objectives.
- Maritime Guarantee Letter (Shipping Guarantee): This letter is issued at the client's request when goods arrive at the port but the original documents are delayed. The issuing bank agrees to provide the original bill of lading to the carrier upon its arrival, in exchange for the return of the maritime guarantee letter. The carrier is not liable for delivering the goods to the importer, who agrees to accept the documents when they arrive, even if there are any discrepancies.
Letter of Credits
A letter of credit is an agreement in which Bank AlJazira commits to pay for purchases of goods or services on behalf of the client, as long as the required documents that meet the supplier's conditions are presented. This letter enhances trust and reassurance between importers and suppliers, both local and international, during transactions. It also helps minimize risks related to communication and financial dealings, ensuring compliance with the letter's terms and conditions.
Import Documentary Credits
This is an irrevocable commitment issued by the bank, commonly used to support both international and domestic trade. Documentary credits provide your suppliers with a guarantee from Bank AlJazira to pay them once they present the necessary documents within a specified timeframe, as stated in the terms of the credit. Using documentary credits reduces the risk of non-payment for goods by ensuring that the documents submitted by the supplier fully meet the established conditions.
Import Credits
- Issuance of local and foreign letter of credits on the same day the request is received, upon completion of the required documents.
- Financing deferred payment for letter of credits under agreed-upon favorable terms.
Export letter of Credits
Bank AlJazira provides you, as an exporter, with letter of credits as a commitment from the buyer's bank to complete payment to you, contingent upon your shipment of goods and submission of the required documents within a specified timeframe as outlined in the letter of credit, in most major currencies.
Export Credits
- Notification of incoming letter of credits within two hours with competitive LC advising fees.
- Processing of letter of credit documents and acceptance of time drafts within a short period.
- Adding confirmation to export LCs to ensure that exporter will receive payment even if the issuing bank fails to honor the due payment.
- Financing deferred payment export credits (post-shipment) to exporters on non-recourse basis with competitive pricing.
- Export LC Refinancing enabling exporters to receive early payment under an Export Letter if Credit (LC), while mitigating non-payment risk associated with LC issuing bank.
- Pre-shipment Financing to help exporters meet the working capital requirements needed to fulfill export orders.
Collection Documents (Bills)
Often employed between suppliers and exporters with an existing business relationship, such as in the exchange of goods or services. They involve creating commercial documents that are payable according to the agreed-upon terms. There are two types of collection documents: outward and inward collections.
Receipt of notifications for outgoing documents and payment notifications, in addition to receiving notifications for incoming documents for collection.
Avalisation for Collection Bills
Adding our guarantee to a collection bill ensuring the exporter receives payment even if the importer fails to pay.
Financing
Bank AlJazira offers tailored financing solutions and options designed to help you efficiently grow your business, adapt to changing market conditions, make effective business decisions, and seize new business opportunities. Our products and services are fully compliant with Islamic Sharia principles and are designed to meet and support your business needs for sustainable growth.
Secured Financing
Bank AlJazira allows clients to issue bank guarantees and letters of credit backed by 100% cash collateral without a need of credit facility
Deferred Credit Financing
Bank AlJazira provides a deferred credit financing program in line with Islamic financing principles (Tawarruq), offering liquidity prior to the maturity of the credit facility. This enables clients to manage their cash flow effectively and foster business growth.
Digital Channels
AlJazira Online Trade
AlJazira Online Trade is an online service that provides a wide range of commercial operations services for corporate clients. It allows you to conduct your local and international transactions from your office or anywhere in the world, quickly, securely, and efficiently.
- Execute trade service requests through AlJazira Online Trade without the need for the client to visit the bank.
- Create trade service requests in a shorter time compared to traditional manual methods.
- Offers an Admin feature on the client page, providing high-level permissions such as creating sub-users and assigning their permissions.
- The Admin has the capability to manage client activities via AlJazira Online Trade by creating an unlimited number of sub-users (request entrants, request validators) to manage trade activities and approve requests.
- The Admin can define sub-user permissions as deemed appropriate to fit the organizational structure.
- Manage trade service request information with confidentiality and security.
- Provide security controls for creating trade service requests by obtaining approval from the authorized user before submission to the bank.
- Inquire about the status of request execution via AlJazira Online Trade.
- Send notifications via SMS or email based on client preferences.
- Option to save requests without submitting them to the bank, allowing clients to add, modify, or delete any request data at any time.
- Access historical records of executed, created, canceled, and rejected requests through AlJazira Online Trade.
- Streamline the time required to complete administrative procedures for creating trade service requests.
- Reduce risks associated with potential errors.
- View trade service requests sent to the bank via traditional methods through AlJazira Online Trade.
- Minimize paperwork in this regard.
- Create trade service requests at any time of the day or during official bank holidays, with processing commencing during official working hours.
- Opportunity to receive request results within a maximum of two hours if the request is submitted to the bank via AlJazira Online Trade before 3 PM on business days.
Trade Finance Application Forms
Below are the available trade finance service request forms:
- Application for Import Documentary Credit
- Murabaha Purchase Promise
- Supplier Performance Guarantee
- Promissory Note
- Application for Amendments to Import Documentary Credit
- Application for Issuance of Maritime Guarantee and Client Agreement
- Application for Issuance of Guarantee Letter / Indemnity
- Application for Joint Documentary Credit
If you are a client of Bank AlJazira in the field of trade services, you can now select any of the forms listed above according to the type of service you wish to obtain, and then proceed with the following steps:
- Fill in the required fields in the form by entering the necessary information.
- Print a copy of the form after accurately completing the required information.
- Sign the form in the designated area for the client's signature.
- Send the signed form to the Trade Operations Department - Head Office or to the Corporate Financing Department in your respective area.
Contact Us Through:
Request a call or meeting
Contact your relationship manager or visit the nearest corporate customer service center of Bank AlJazira.
Call the toll-free number: 8002449090
Focal Points of Contact:
• Nasser Al-Theeban +966542908888
• Fahad Bin Daleel +966500232175
• Damian Dissanayake +966538588440
Unified Email: TradeSales@BankAljazira.com