Construction Musharaka

Sharing Constructions with the Client Who is Participating in the Land

The Concept:
Sharing in the construction process with a client participating in the land is a common practice in joint ventures which the Bank has already applied in the past. Within the frame of this transaction the Bank will participate in the construction process, based on its request to build specified concrete constructions on a land already owned by the client, on condition that the client shall grant his permission and authorization to the Bank certified by the legal office or the public notary to enable the later to embark on the building operations on the client's land.

At Jumhouria Bank we seek to achieve your ambitions to grow your business by providing a range of financial products for funding companies, all consistent and compliant with the provisions of Islamic Sharia.

Required Documents:

1. All the legal documents confirming the ownership of the land by the project holder endorsed and documented by the real estate registry in a recent date and addressed to the company.
2. All the licenses and approvals related to the project's land leasing.
3. An underwriting by the land owner confirming there no disputes concerning the ownership of the land or any other problems in this regard.
4. The legal documents of the joint venture which the constructions are intended for include the following:
   
   • The license for the business activity.
   • The commercial registry and the chamber of commerce.
   • The bylaws of the company.
   • The incorporation of the company (including the provision for entitlement to borrow from banks).
5. The application submitted by the company to the Bank concerning the establishment of specified construction with defined specifications and measurements prepared by a specialized office. The application shall include the value of the required funding, its purpose and the proposed guarantees for the funding.
6. Statement for the current account of the company at one of the branches of Jumhouria Bank.
7. The feasibility study for construction project from an accredited office by the Central Bank of Libya (residential properties not included).
8. A pledge by the company confirming that it has no standing financial liabilities.
9. The balance sheet of the company for two years from an accredited office by the Central Bank of Libya, or from a recent financial center in the event the company is newly established.
10. The biographies of all partners or the client named in the incorporation of the company.
11. The initial measurements for the joint venture.
12. The contribution of the partners with not less than 30 percent according to the applicable regulations.
13. A statement asserting that there no disputes in relation to the property of the joint venture.