Tawreeq launches Sharia-compliant supply chain finance platform

Monday 26 January 2015 11:28 CET | News

Tawreeq, an independent UAE/Luxembourg-based group with entities licensed by the DFSA and Luxembourg, has launched a supply chain finance platform targeting the SMEs and their corporate clients across the region.

Tawreeq is trying to address the regions credit gaps through Sharia-compliant factoring, reverse-factoring and ethical management of the entire cycle of supply chain finance.

SMEs make up as much as 90% of the businesses in the region and employ the vast majority of workers. But they face challenges in managing their cash flow and getting the working capital they need. Tawreeq tackles those challenges via cash-flow tools known as factoring and reverse factoring. Factoring is a short-term cash-flow solution in which a business sells its accounts receivable for a nominal fee while reverse-factoring entails the extension of payment terms of buying corporates to match it with their receivables.

The company has led a year and a half long development process to devise a Sharia-compliant workflow for supply chain finance. The newly launched trade receivables securitisation platform has at its core a Sharia-compliant component proprietary powered by an international IT platform.

Tawreeq is a Sharia-compliant alternative financial service which includes four entities operating under one umbrella. They include: Tawreeq Investments licensed and based in Luxembourg; Dar Al Tawreeq a Dubai-based company offering forfaiting and factoring services, and which has developed, along with its international IT partners, the trading platform and the links between corporates and SMEs; iSCF Capital Limited, a DIFC-based company that connects local and regional corporates with international suppliers and is focused on advising and arranging the reverse factoring transactions, and HMR Consulting, an Abu Dhabi-based company that collaborates between corporates and SMEs on the platform.

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Keywords: Tawreeq, Sharia, compliant, supply chain finance, platform, SMEs, factoring, reverse-factoring, cash-flow, Trade receivables securitisation
Categories: Banking & Fintech
Countries: World
This article is part of category

Banking & Fintech