Islamic finance, also known as a Sharia-compliant loan, is a financial instrument based on the principles of Islamic finance, which prohibits interest (usury) and uncertainty (gharar). Islamic loans operate using Sharia-compliant financing mechanisms, such as Murabaha (profitable sale), Ijara (rental purchase), or Mudaraba (profit and loss sharing). In Islamic finance, the bank or financial institution does not charge interest, but makes profits by investing the borrowed money in legitimate business transactions.

Islamic banks and windows are financed through customer deposits and other Sharia-compliant financing sources. Customers of Islamic banks and windows deposit their money into Islamic savings or current accounts as well as absolute investment deposits, and these funds are then used to finance Sharia-compliant banking activities.

The main difference lies in the prohibition of interest (usury) in Islamic finance. Unlike conventional finance, where loans earn interest, Islamic finance relies on Sharia-compliant contracts, where profits are generated through legitimate business transactions, avoiding interest and activities forbidden by Sharia. In addition, the relationship between the Islamic bank and the client is a partnership relationship for sharing risks.

An Islamic account is a type of bank account compatible with the provisions of Islamic Sharia, where interest (usury) is prohibited. Islamic accounts are designed for clients who wish to respect the principles of Islamic finance. Instead of charging interest, Islamic accounts may offer profit sharing or operate on the basis of contracts such as Mudaraba or Ijarah, where profits are earned ethically and in accordance with Islamic principles.

We are required to comply with all legal standards and instructions regarding the terms of the Islamic Window including compliance with TEG.

- For Murabaha financing operations to purchase real estate, the bank purchases the property of the customer’s choice with a contract. Once the owner, the bank resells it to its client at a price that includes the acquisition cost plus a profit margin and according to the payment schedule to be agreed upon.

- For Murabaha financing operations for the purchase of transportable goods such as cars and consumer goods: The Islamic Window purchases the commodity by issuing a purchase order and receiving the final invoice or by authorization from the customer. The purchased goods are then sold to the customer at the selling price that includes the purchase price plus the profit margin and according to the payment schedule. Which will be agreed upon.

The Islamic Window benefits from the bank's experience in the standards applied to banks. CAC ISLAMIC BANK applies accounting, auditing and Sharia standards for Islamic banks that are internationally approved.

A debit in the account is equivalent to a loan and any income obtained from this loan is considered illegal income (usury). CAC ISLAMIC BANK, by refraining from providing these facilities, respects legal obligations and ensures the proper management of the funds entrusted to it by shareholders and investor clients.

In financing contracts, when financing is requested from the customer, the bank pays the money on behalf of the customer. In this way, the bank dispenses with the money for a period of time according to what is agreed upon between the bank and the customer. There is a rule that says, " للزمن نصيبه من السعر في البيع والشراء " so time is only one of the price components in buy and sell contracts.

Account maintenance fees represent account maintenance services, transaction recording, history records and other services such as account statements and statements. This revenue that returns to the window is for services provided.

CAC ISLAMIC BANK offers a variety of products and services that are compatible with the provisions of Islamic Sharia and that meet the needs of its customers. Some products offered by conventional banks cannot be offered by CAC ISLAMIC BANK due to their incompatibility with Islamic Sharia principles (discount, overdraft facilities, overdraft, forward exchange operations, etc.).

There are three main families of prohibitions: interest (usury), doubt (gharar), and zulm.

The techniques are adapted for each product category, for example:

- Savings and investment products: Mudaraba or Wakala investment bill

- Financing products: Murabaha, Ijara, Istisna
Other techniques could be gradually adopted based on Islamic financial engineering as part of new product design.

CAC ISLAMIC BANK does not apply fines for late payment.

CAC ISLAMIC BANK is a for-profit banking institution governed by applicable laws. Both shareholders and investors (depositors) seek to make a profit from the funds deposited in the window. It is up to the bank's policy to manage the funds entrusted to them in the best possible administrative conditions. Competitiveness is not synonymous with “low prices”, on the other hand, the desire to make profit and a firm desire to provide high-quality services ensure the development and sustainability of the enterprise.

- Murabaha: It is a financing process through which the bank, based on the customer’s request, acquires the commodity for cash and resells it to the final buyer (customer) while postponing payment of the sale price consisting of the value of the commodity. The purchase cost plus the profit margin due to the bank. This profit margin, which is determined in advance, can be a fixed amount or a percentage of the cost of purchasing the property.

- Ijarah (such as leasing): The bank purchases goods (furniture or buildings) and makes them available to requesting customers for use in exchange for a fee (rent). The rent consists of a consumption part of the value of the property, and a second part that represents the return for the use resulting from this property and is paid in periodic installments. This contract may be accompanied by a call option which must be included in a separate document and can be exercised at maturity or during the contract.

- Istisna: It is a contract under which the customer requests the manufacture of a commodity (furniture or buildings) with the aim of acquiring it. The bank assigns the factory (contractor) to implement this request according to the required standards, with the possibility of assigning the buyer to a supervisory office to receive the goods to be manufactured. The bank pays the acquisition cost as manufacturing progresses and sells the manufactured good at the selling price including the manufacturing cost and the bank's profit margin.

- Mudaraba: It is a form of partnership where one party provides the funds (the rabbi) and the other (the mudarib) provides the expertise and management. The profit is divided between the two partners on a pre-agreed basis, while the loss is borne by the first party (the speculator), and the second party (the speculator) loses his effort and currency unless it is proven that he caused the loss through transgression and negligence on his part.

- Musharaka: It is a contract under which two or more parties participate in the capital of a company or in financing a project or operation, each of whom contributes his share. The result generated by the company (or project/process) will be shared if a profit is made on a pre-agreed basis, or a loss will be borne by both parties in proportion to their respective contributions.

- Agency - Investment Bill: It is a contract under which the client authorizes the bank to develop his money with or without compensation.

The investment amount and duration must be determined, whether the amount is disbursed immediately or gradually, and the two parties agree that the expected profit percentage for the client/clients from the operations carried out by the bank is permissible in implementing each investment. The two parties confirm that the percentage that will be announced in the implementation of each deal is an expected profit and not a guaranteed profit. The final profit is determined at the end of each investment period. If the return on investment exceeds the pre-agreed profit rate, the bank will be rewarded for the effort.