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SADAFCO in a SAR75 million Murabaha move with United Gulf Bank

: Monday, January 27 - 2014 @ 14:10

The Tadawul All Share Index dived by 0.92 per cent to 8,655.01 points on Monday, January 27. SABIC lost 0.88 per cent, falling to SR113. SABIC lost more than four per cent in the last 11 days amid the worries that some emerging markets will head into economic problems in 2014, such as Brazil. Saudia Dairy and Foodstuff Company (SADAFCO) dipped 0.32 per cent to SR79. Earlier in the day, SADAFCO said that it decided on January 26 to place a SAR75 million Murabaha deposit with United Gulf Bank in Bahrain (a related party) to maximize the return on its excess cash generated from its operational activities. “The deposit will be placed on January 27, 2014, and mature on March 25, 2014, at a return of three per cent per annum,” says SADAFCO. The Murabaha deposit will be placed on the agenda of the next Annual General Assembly meeting for review, to be determined and announced at a later date. Under the Islamic finance scheme Murabaha, a bank buys goods or property for the client and re-sells it to them at a higher price over an agreed period of time, in order to avoid interest or ‘riba’, which is forbidden under Shar’iah.

Gérard Al-Fil

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Monday, January 27- 2014 @ 14:10 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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