Question 1

What is Al-Kawthar Leasing Company?

Accepted Answer

Al-Kawthar Leasing Company is Jordan's first Islamic financial leasing company that operates in full compliance with Sharia law under the supervision of a dedicated Sharia Supervisory Board. Established as a private shareholding company owned by Arab Jordan Investment Bank (AJIB), Al-Kawthar was founded in 2022 with a capital of JOD 8 million.

The company specializes in providing innovative Islamic financial leasing solutions to both individual and corporate clients across Jordan. It is classified as a specialized finance company under the regulatory framework of the Central Bank of Jordan.

Question 2

When was Al-Kawthar Leasing Company founded?

Accepted Answer

Al-Kawthar Leasing Company was founded in 2022 by Arab Jordan Investment Bank (AJIB). The company was established with the specific purpose of offering Sharia-compliant financial leasing services to meet the growing demand for Islamic finance solutions in Jordan.

As AJIB's subsidiary, Al-Kawthar was created to enable the parent bank to expand its service offerings and provide Islamic financing alternatives that comply with the provisions of Islamic law while serving diverse customer needs.

Question 3

Where is Al-Kawthar Leasing Company headquartered?

Accepted Answer

Al-Kawthar Leasing Company is headquartered in Amman, Jordan, specifically on Mecca Street, Building No. 19. The company operates from this central location to serve its clients across the Jordanian market.

The headquarters houses the company's executive management, including the Board of Directors and the Sharia Supervisory Board, which oversees all operations to ensure compliance with Islamic law.

Question 4

Where does Al-Kawthar Leasing Company operate?

Accepted Answer

Al-Kawthar Leasing Company operates throughout Jordan, serving both urban and regional markets across the kingdom. As a specialized finance company licensed by the Central Bank of Jordan, the company provides its Islamic financial leasing services to clients nationwide.

The company's operational scope covers all governorates of Jordan, offering financing solutions to businesses and individuals in various economic sectors across the country.

Question 5

What services does Al-Kawthar Leasing Company offer?

Accepted Answer

Al-Kawthar Leasing Company offers a comprehensive range of Sharia-compliant financial leasing products and services, including:

Lease-to-Own (Ijara Muntahia Bittamleek): Lease contracts that end with ownership, allowing clients to eventually own the financed asset. This is the company's primary product offering in compliance with Islamic finance principles.

Operating Lease (Ijara Tashgheeliya): Allows lessees to benefit from and operate assets in their business without eventual ownership. This service provides flexibility for businesses requiring temporary use of equipment or vehicles.

Sale-Leaseback Arrangements: Enables companies to sell assets and lease them back, providing liquidity while maintaining operational use of the assets.

The company finances a wide variety of assets, including production lines, trucks, buses, machinery and equipment, medical and laboratory equipment, passenger vehicles, housing projects, and ready-made housing units. Al-Kawthar serves both individual customers and corporate clients across multiple sectors of the Jordanian economy.

Question 6

What makes Al-Kawthar Leasing Company unique?

Accepted Answer

Al-Kawthar Leasing Company holds the distinction of being Jordan's first financial leasing company that is fully compliant with Islamic Sharia law. This pioneering position in the Islamic finance leasing sector sets it apart from other specialized finance companies in Jordan.

The company operates under the supervision of a three-member Sharia Supervisory Board, chaired by Dr. Basel Yousef Al-Shaer, with members Dr. Raed Nasri Abu Mounes and Dr. Mousa Mustafa AlQudah. This board ensures all products and operations adhere strictly to Islamic jurisprudence.

Al-Kawthar leverages the institutional strength and expertise of its parent company, Arab Jordan Investment Bank, combining AJIB's financial resources with specialized teams experienced in Islamic financial leasing. The company is led by General Manager Jamal Mohammad Fariz, who joined in January 2024 and brings extensive experience from his previous role as General Manager and CEO of Tamkeen Leasing.

Question 7

What type of financial institution is Al-Kawthar Leasing Company?

Accepted Answer

Al-Kawthar Leasing Company is classified as a Specialized Finance Company under Jordanian law, specifically regulated under the Finance Companies Bylaw No. 107 of 2021 issued by the Central Bank of Jordan.

In Jordan's financial regulatory framework, specialized finance companies are non-bank financial institutions authorized to provide specific financial services such as financial leasing, direct credit, factoring, and mortgage finance. Al-Kawthar specializes exclusively in Islamic financial leasing activities, particularly lease-to-own (Ijara Muntahia Bittamleek) and operating lease products.

As a specialized finance company, Al-Kawthar operates under different regulatory requirements than traditional banks, with a minimum capital requirement of JOD 8 million for companies engaged in financial leasing activities. The company must comply with both the Central Bank of Jordan's regulations and the principles of Islamic Sharia law as overseen by its Sharia Supervisory Board.

Question 8

Who leads Al-Kawthar Leasing Company?

Accepted Answer

The company is governed by a Board of Directors chaired by Raed Rawhi Al-Massis, with Vice Chairman Zain Hani Al-Qadi and member Tareq Adeeb Sayegh. Day-to-day operations are managed by General Manager Jamal Mohammad Fariz, who assumed the position in January 2024.

Jamal Fariz brings distinguished experience from the financial and banking sector, having previously served as General Manager and CEO of Tamkeen Leasing for twelve years. His expertise in financial leasing positions the company well for growth in Jordan's Islamic finance market.

The Sharia Supervisory Board provides religious oversight to ensure all products and services comply with Islamic law, maintaining the company's unique position as Jordan's first Sharia-compliant financial leasing institution.

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