Financing Against Trust Receipt Facility (FATR)

Trust Receipt is a deferred payment facility from the Bank under the LC obligation that enables the customer to defer the payment to the Supplier without reducing customer credibility. With this facility, the customer can defer his payment obligation to the Bank, but can still be able to get the goods that have already been ordered with the LC and sell it on behalf of the bank. The customer simply has to submit a TR Letter which basically contains a statement of receiving the goods on Bank’s behalf and promising to pay the Bank on deferred basis.

What are the Shari’ah Compliant products & Services that UAB Islamic Banking will offer to UAB SME/Corporate clients?
UAB Islamic Banking will offer all types of Islamic facilities on Liability and Asset. Products like:


Islamic Product
Murabaha LCs
Asset/s Finance
Commodity Murabaha Local Bill Financing
Finance Against Trust Receipts
Business Installment Finance
Current Accounts

Are Shari’ah Compliant products & services designed only for Muslims?
No, anyone can avail the products & services of UAB. We encourage all customers irrespective of their faith or religion to experience the Islamic products & services offered by the bank.

What are the differences between the Shari’ah Compliant offering of UAB and the conventional one?
UAB Shari’ah Compliant products & services are based on Islamic rules & principles which for instance don’t involve any kind of interest. The Shari’ah Compliant offering is based on asset backed finance technique where the customer for instance can get cash through a buy and sell of an underlying asset.

Do UAB - Islamic Banking has a Shari’ah Supervisory Board (SSB)? If yes who are they?
Yes UAB - Islamic Banking has an independent SSB to guide and to give FATWAS on specific Shari’ah related issues.
All UAB Shari’ah Compliant products & services are approved and examined by the SSB. The SSB of UAB consists of three distinguished scholars in the Islamic finance industry, namely;

A. Sheikh Dr. Abdul Sattar Abu Ghuddah - Head of The Shari'ah Board

Holder of;

  • Bachelors in Shari'ah from Damascus University (1964).
  • Bachelors of Law from Damascus University (1965).
  • Masters in Shari'ah from Al-Azhar University (1966).
  • Masters in Al-Hadith Sciences from Al-Azhar University (1967).
  • Doctorate in Comparative Jurisprudence from Al-Azhar (1975).

A member of;

  • International Islamic Fiqh Academy in Jeddah.
  • Zakat International Shari'ah Board.
  • Accounting Standards Council.
  • Shari'ah Council of the Accounting and Auditing Organization for Islamic financial institutions. (AAOIFI)

Vice-President of the Shari'ah Board of Dubai Financial Market (DFM), an executive member of the Shari'ah Board of the Central Bank of Syria, a member of the Shari'ah Committee of the Central Bank of Bahrain, Vice-President of the Shari'ah Board of the Abu Dhabi Islamic Bank, a member of the Shari'ah Board of the Sharjah Islamic Bank, Chairman of the Shari'ah Board of Abu Dhabi National Takaful Co., a member of the Shari'ah Board of Takaful Re Limited in (DIFC), Head of National Bonds Shari'ah Board , in addition to being a Head or a member of many other Shari'ah Boards.

B. Sheikh Dr. Mohamed Ali Elgari Member of AAOIFI Shari’ah Council

  • Dr. Elgari holds a PhD from the University of California and was born in Makkah, Saudi Arabia in the year 1949. He is an Expert at the Islamic Jurisprudence Academy of the OIC and the Islamic Jurisprudence Academy of the Islamic World League.
  • Member of;
    • Shari'ah Council of AAOFI.
    • numerous Shari’ah Boards of Islamic Banks and Takaful Companies worldwide
    • Editorial board of several academic publications in the field of Islamic Finance and Jurisprudence;
      • Journal of the Jurisprudence Academy (of the IWL).
      • Journal of Islamic Economic Studies (IDB).
      • Journal of Islamic Economic (IAIE, London).
      • Advisory board of Harvard Series in Islamic Law, Harvard Law School.
  • Dr. Elgari is the recipient of:
    • The Islamic Development Bank prize in Islamic Banking and Finance.
    • KLIFF Islamic Finance Award for Most Outstanding Contribution to Islamic Finance (Individual).
    • Euromoney’s Award for Outstanding Contribution to Islamic Finance.

C. Sheikh Dr. Muhammad Amin Qattan

  • Holder of a Bachelors of Islamic Economics from Al Imam Muhammad Ibn Saud Islamic University in Riyadh, a Master's and a Doctorates Degrees in Islamic Banks from Birmingham University, Britain.
  • A member of several Shari'ah supervisory bodies in Kuwait, U.A.E., Bahrain, Malaysia, UK, Switzerland and America.
  • Lecturer of Islamic Economics in several regional and international universities.

Does the rate under Shari’ah Compliant offering differ from the conventional rate?.
No, there will be no differences between the rates.

Under Shari’ah Compliant offering If the customer defaulted in paying the Installment / finance amount on due date & time, is there any kind of penalty customer will be charged?.

If the customer defaulted and/or delinquent in paying the outstanding on the due date & time he will be charged an extra amount on the outstanding defaulted/delinquent amount as approved by SSB. The extra amount will first compensate the bank of its actual cost subsequent to such delay where the remaining amount is to be paid on behalf of the customer to UAE charity organizations approved by SSB.

What are the documents required to obtain an Islamic facility?
All credit requirement for approving Islamic facilities will be the same as the one required for a normal SME / Corporate facilities.

Is a collateral against Islamic facilities permitted under the rules and principals of Shari’ah?.
Taking a collateral from a customer is up to the sole discretion of the bank when financing a customer. So, if the credit approval condition mandates the customer to provide a collateral against the finance amount, then such a condition does not conflict with the regulation of Shari’ah.

Who do I contact for help and enquiries after obtaining the facility?
Our dedicated customer service teams will be available to assist you;

  1. For SME Products at: 04-309 2 636 / 04-309 2 635
  2. For Large Corporate Products: 04- 304 5 999
  3. For Corporate Products: 800474