Kafalah Bank Guarantee (KBG)
Kafalah Bank Guarantee-i (KBG-i)
It is a guarantee issued by the Bank to the Beneficiary (contract awarder/third party) where the Bank undertakes to pay the Beneficiary an agreed sum if the Customer defaults in fulfilling the obligations with the Beneficiary.
Shariah Concept
The Shariah concept applicable for this product is Kafalah. Kafalah refers to a contract where the guarantor (Bank) conjoins the guaranteed party (Customer) in assumning the latter’s specified liability. The guarantor shall impose ujrah (fee) for providing the Kafalah service.