SME Banking

BOK believes that the SME sector is a vital engine of economic growth

Small and medium-sized enterprises (SMEs) are the most important sector of a nation’s economy. The government’s view these businesses as one of the tools for achieving its economic targets and one of the central layers in economy and society. The chief advantages of small and medium-sized businesses are that they are innovative, flexible; create competition and quick to set up at a low cost and with dispersed risk. They are likely to provide an appropriate solution to problems of employment in peripheral areas especially during times of recession, and are the seed bed for business of the future. In short, small and medium – sized firms are vitally important for a healthy dynamic market economy.

BOK believes that the SME sector is a vital engine of economic growth for the Sudanese market, and will ensure a bright and sustainable future for the country. SMEs will also stimulate and foster innovation and build a knowledge based economy.  BOK’s services and products provide support for SMEs who have been in business for at least  2 years, have a net worth of minimum 25% of sales and subject to a minimum of SDG300,000 in capital or assets.

These include:

  • Local trade
  • Export
  • Agriculture (irrigated land only)
  • Industries (working capital)
  • Real estate (commercial)
  • Contracting
  • Import
  • Mining

Our goal now is to harness greater synergy within the group’s customer base to become the ‘one bank’ for their financial needs across our range of services and continue to develop new products and services to meet the growing sophistication of our customers’ needs.


This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, other costs, and the profit margin must be clearly stated at the time of the sale agreement. The bank is compensated for the time value of its money in the form of the profit margin. This is a fixed-income loan for the purchase of a real asset (such as real estate or a vehicle), with a fixed rate of profit determined by the profit margin. The bank is not compensated for the time value of money outside of the contracted term (i.e., the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.

Musharaka (Partnership)

The bank enters into a partnership with the customer in an existing or new investment project or in the ownership of an asset, either on a permanent or diminishing basis. The Musharaka gets terminated upon the customer fully acquiring the title to the project /assets in a gradual manner. Musharaka profits are shared as per mutual agreement whereas losses are borne pro-rata.

Mudaraba (Fund Management)

This is an investment contract in which an investor provides the capital and the investment manager carries out the investment activities in a specific project or trade for a defined period. Profit is distributed as per the agreed ratio. However, genuine loss is fully absorbed by the investor. The investment manager is responsible to indemnify the investor in case of negligence.

Mogawala (Istisna, Forward Sale of An Asset)

Istisna (Manufacturing Finance) is a process where payments are made in stages to facilitate step wise progress in the Manufacturing / processing / construction works. Istisna enables any construction company get finance to construct slaps / sections of a building by availing finances in installments for each slap. Istisna also helps manufacturers to avail finance for manufacturing / processing cost for any large order for goods supposed to supply in stages. Istisna helps use of limited funds to develop higher value goods/assets in different stages / contracts.

Ijarah Muntahia Bittamleek (Leasing )

Ijara is a form of leasing where a property (real estate, cars, equipment etc.) is leased by the lessor to the lessee in a way that at the end of an agreed lease period, the lessee becomes the owner of the property by purchasing it from the lessor during or at the end of the lease period at an agreed sale price.

Bai Salam (Forward Sale of Goods)

Bai salam means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver, or currencies based on these metals. Barring this, Bai Salam covers almost everything that is capable of being definitely described as to quantity, quality, and workmanship.

Bai' muajjal (credit sale)

Literally bai' muajjal means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. Bai' muajjal is also called a deferred-payment sale. However, one of the essential descriptions of riba is an unjustified delay in payment or either increasing or decreasing the price if the payment is immediate or delayed.

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