Al Kafalah (Suretyship) :

Definition of Kafalah:

Kafalah literally means guarantee. It is defined as a contract which combines one's Zimmah (Liability) with another person's Zimmah.

OR

Kafalah means to add an obligation to an existing obligation in respect of a demand for something. This may relate to a person, finance or act (performance).

Types of Guarantees:

• Performance Guarantees.
• Bid Bonds / Tender Deposit Guarantees.
• Guarantees for Advance Payment Mobilization.
• Security Deposit Guarantees.
• Guarantees for Payment of Dues.
• Loan Repayment Financial Guarantees (For transactions under Islamic Modes).
• Permanent / Open-ended Guarantees.
• Guarantees Expressed in Foreign Currency.