1. What is Shari’ah compliant banking?

Shari’ah compliant banking is defined as banking in accordance with the ethics and values of Islam and governed, in addition to the conventional corporate governance and risk management best practices, by Islamic principles. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid paying interest. Islamic banking on the other hand, is expected not only to avoid interest-based transactions, prohibited in the Islamic Shari’ah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy.

2. How are investments deemed to be Shari’ah compliant?

The compliance of any investment to Shari’ah principles and its associated structure is determined by Shari’ah scholars who, after analyzing and examining, give their fatwa (i.e. pronouncement) on the compliance of each investment and its associated structure in accordance with the principles and practices of Islam.

3. What is the difference between Shari'ah compliant banking and conventional banking?

The main difference between Shari'ah compliant banking and conventional banking is that Shari’ah principles prohibit interest (known as "Riba") which forbids people from profiting from lending money, without accepting a level of risk. However, wealth can only be generated through legitimate trade and investment. Any gain or profit related to this investment is shared between the person providing the capital and the person providing the expertise.

4. What are the financial instruments of Shari'ah compliant banking?

Financial instruments include but are not limited to:

Ijara: A form of leasing which involves a contract whereby the bank buys and then leases an item to a customer for a specified rental over a specific period. During the term of the lease the item is kept on the balance sheet of the bank. After the lease term ends, the ownership of the asset is transferred to the client.

Murabaha: A contract sale between the bank and its client for the sale of goods at a price which includes a profit rate agreed on by both parties. At the client's request, the bank will buy the assets in order to resell them to the client with a pre-defined mark-up. Repayment by the client in installments is specified in the contract. Under Murabaha, the bank discloses the actual cost it has incurred to its client in acquiring the goods as well as the added profit.

Mudaraba: An equity-based partnership arrangement whereby one partner provides capital (the Rab al-Maal) and the other provides managerial skills (the Mudarib). Profit is shared according to an agreed upon ratio. A fixed amount is not allowed.

Musharaka: A partnership arrangement between two (or more) parties, where each partner makes a capital contribution to the partnership, either cash or contributions in kind. The Musharaka partners share the profits of the Musharaka in pre-agreed proportions and share the losses of the Musharaka in proportion to their initial capital investment.

Musawama: A sale contract between the bank and its client to purchase a certain commodity or good. At the client's request, the bank will purchase the commodity from the supplier at a pre-agreed price and then sell it to its client at a price including a profit. Repayment to the bank by the client is done through installments over an agreed period of time.

5. What is the role of Shari’ah Supervisory Board?

The role of Shari’ah Supervisory Board members is to review the bank’s operations and determine the Shari’ah compliance of the products and investments. The Shari’ah Supervisory Board carry out their own independent audit and certify that nothing relating to any of the operations involve any element that is prohibited by Shari’ah.

6. Can anyone do business with Shari'ah compliant banking?

Yes, any investor can benefit from Shari’ah compliant banking products. Shari’ah compliant banking is for all investors (both Muslim and non-Muslim) and is a market with great potential.

7. How do I obtain a QFIB Annual Report?

You can request an annual report by filling out the information request form within the Investor Relations section. Contact now 

8. How can I transfer QFIB’s shares from one shareholder to another?

Please contact our Investors Relations Department. Contact now

9. I am a QFIB shareholder, how do I inform the bank of my change of address to receive dividend checks and other bank related information?

Please contact our Investors Relations Department. Contact now 

10. Where can I find the QFIB Anti-Money Laundering Questionnaire?

Please follow this link. AML Questionnaire

11. Who should I contact if I have a complaint?

Please address all such correspondence to Complaints@qfib.com.qa