Investments
Earn rewards merely by participating in TABUK’s investment plan since your investment will help in avoiding Riba for all members.
If you keep your funds in traditional banks (saving or checking accounts), then it benefits the banks. But by investing with Tabuk, you will get halal profit and also reward from Allah (SWT) for helping and assisting your Muslim community members in becoming homeowners by avoiding Riba.
Requirements for Investment
Please note that this communication is not intended as a solicitation to buy, sell, or solicit business and financing from the general public. Our investment opportunities are exclusively available to qualified members. If you wish to invest with TABUK, we invite you to initiate the process by submitting a membership application. This ensures that our offerings are tailored to the needs of our qualified members, fostering a secure and exclusive investment environment. Thank you for your understanding and cooperation in maintaining the integrity of our investment platform.
We do not accept investment from any institutions that deal with interest (Riba) directly, indirectly or through third party. This includes but is not limited to, banks, private/public investment/financing institutions. We also humbly advise and request all our members to not engage in any activity that promotes interest (Riba).
You are required to apply for membership in order to invest with TABUK. Based on your investment, net profit is paid as dividends to qualifying members on a quarterly basis depending on their investment. These dividends vary from quarter to quarter.
Investing in TABUK
TABUK proudly operates as an interest-free housing scheme, providing an esteemed Halal investment opportunity for the Muslim community. By participating in this plan, you not only stand to gain Halal dividends but also earn spiritual rewards, as your involvement helps uphold the principles of enjoining the good and avoiding Riba.
Our unique model focuses solely on investing in owner-occupied homes, ensuring that your investment aligns with Islamic principles. TABUK generates income through two distinct channels:
Monthly Rent Collection:
- TABUK holds the titles of the properties, collecting monthly rent from tenants, which contributes to the overall income.
Appreciation/Depreciation Percentage:
- Upon the transfer of property titles to members engaged in the rent-to-own program, TABUK derives a percentage of appreciation (or depreciation). After covering operational costs, the generated income is distributed as dividends to our members on a quarterly basis.
The dividends are calculated based on the minimum balance maintained in member accounts throughout the dividend period. TABUK is committed to transparency and timely communication, with a policy to announce dividends within 2 months after the close of each quarter.
By choosing TABUK, you are not just making a financial investment but actively contributing to the provision of Halal housing solutions. Join us on this journey where your investment not only grows in a Sharia-compliant manner but also facilitates fellow community members in acquiring homes in accordance with Islamic principles.
What makes TABUK's process Halal?
In adherence to Islamic Shariah principles, TABUK distinguishes itself by engaging in permissible trade while steadfastly avoiding the prohibited practice of usury. Unlike conventional banks, TABUK’s income is ethically sourced from the compensation provided by users for the use of property, making it inherently Halal.
The relationship between TABUK and its members is built on the principles of partnership, a fundamental condition for any financial contract to be deemed acceptable from a Shari’ah perspective. As partners in acquiring a property, both TABUK and the member actively contribute to the venture.
When a member wishes to assume full ownership, a transparent process ensues. An appraisal of the property is conducted to ascertain its current value, and the member must buy out all of TABUK’s shares. The profit or loss sharing is structured such that TABUK takes/pays 10% while the member takes/pays 90% of any gain or loss compared to the purchase price.
To facilitate the member’s use of the property, a monthly rent is paid, reflecting the market rent for similar homes in the neighborhood. This rent is equitably shared between the member and TABUK, ensuring fairness and compliance with Islamic principles.
TABUK’s commitment to Shariah-compliant financial practices extends beyond mere rhetoric, offering a tangible and ethical alternative for those seeking Halal investment opportunities. Our model not only adheres to Islamic principles but also fosters a partnership-driven approach, aligning with the values of our discerning community.
What sets TABUK apart?
Below are just a few of the advantages of our 100% debt-free, riba-free program:
TABUK |
Bank Loan |
|
| No Debt | 100% Debt-free | Debt is owed |
| No Lien | No Lien | Lien is placed against the property to secure the loan |
| No Mortgage | No Mortgage Paperwork | Mortgage paperwork is signed |
| No Foreclosure | Wholly Owned Property (i.e. No Foreclosure) | Home can be foreclosed if mortgage payments are not met |
| Shared Profit & Loss | Profit & Loss are shared | No profit or loss is shared because it is a loan and not a partnership |
Security of Investment
Investing with TABUK provides a secure financial environment, underscored by our commitment to safeguarding investor interests. TABUK prudently holds the title of each home until it is entirely bought out by the member-owner, offering a robust layer of security to our valued investors.
In a strategic effort to minimize risks, TABUK only procures properties when ample funds become available. This deliberate approach not only ensures financial stability for the institution but also reduces risks for investors, leveraging the inherent stability of real estate as a relatively secure investment avenue. Notably, all TABUK properties are 100% debt-free and lien-free, reinforcing our dedication to providing a sound and reliable investment platform.
Moreover, TABUK’s Board proactively manages liquidity to facilitate member withdrawals. In instances where members seek to withdraw up to $10,000, our aim is to process these requests promptly, typically within 48 hours, ensuring quick and efficient access to funds. For larger withdrawal amounts, we are committed to providing a thorough and diligent process, acknowledging that additional time may be required for these transactions.
At TABUK, we prioritize transparency, security, and efficiency in our operations, aiming to build trust with our investors through a combination of prudent financial practices and a steadfast commitment to their financial well-being.
Become an Investor
We only accept investments from our qualified members only. You can become a member of TABUK by paying $150.00 one-time membership fee plus a minimum investment of $500.00.