Page 8 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020

Istisna – This is where the bank agrees to finance the manufacture or production of a product and the
payment is made upon completion and delivery of the item in question. It is a mode of financing used to sell
a non-existing asset which is to be manufactured or built according to the customer’s specification and to be
delivered on a specific future date at a determined Selling price.

Quad Hassan (Benevolent Loan) - Is a non-interest bearing loan intended to allow the borrower to use the
loaned fund for a period of time with the understanding that the same amount of the loan fund would be repaid
at the end of the period.

Sukuk Al Salam - This is a short-term Islamic security, which is the conventional equivalent of Treasury Bills.
It is used to mop up/control excess liquidity in the system. It is a short term investment usually 3,6, and 12
months. It is a transaction whereby two parties agree to carry out the sale and purchase of an underlying
asset at a future date, and prepaid price.

Annual Report and IFRS Financial Statements for the year ended 31 December 2020 7