Al Ramz Securities, one of the UAE's leading brokerage houses, has once again reaffirmed its pioneering role in local industry by introducing the country’s first-ever Islamic Margin Trading service.
The service is patterned after the ‘Murabaha’ type of Shariah-compliant ‘cost-plus’ financing, where a fund purchases goods and resells them to a third party at an agreed-upon price. The price includes the cost of the goods plus a profit margin, with the cost and margin predetermined by the parties involved in advance.
Under its Islamic Margin Trading scheme, Al Ramz buys Islamic-compliant shares specifically agreed upon with the client and then sells them to the latter following the Murabaha sharing concept, with the payment mode chosen in advance. The service has been approved by an advisor from the Sharia Board.
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