Morabaha & Estisna'a

EIB is very keen to extend its service into the area of Islamic scheme of financing. It has accordingly introduced the financing device known as Morabaha and Estisna'a. In accordance with this mode of financing, the EIB can purchase the raw material, spare parts, machineries and equipment required by a project, and re-sell them to the investors, in accordance with the terms and conditions of the Morabaha scheme. It also can contract civil work requirements and re-sell them to investors, in accordance with the terms and conditions of the Estisna'a scheme. The uniqueness of the Islamic Morabaha and Estisna'a mode of financing will not only aid EIB's efforts in diversifying its services but also enable it to reach a still wider range of industrial investors.