SIBOR

The reference price of the interbank lending cost in Saudi Riyals (SAIBOR)

Is the interbank lending rate denominated in Saudi Riyals and is determined on a daily basis based on market factors according to a specific and interbank approved mechanism. It is used as a primary reference to measure the cost of lending and pricing of loans to customers in Saudi Riyals.

 

This month's SAIBOR is:  3.5581%

 

Does changing the rental price comply with Islamic Sharia?

 

Yes, based on the financing contract, the lessor can raise or lower the profit rate based on the SAIBOR index. The total rental cost is calculated according to successive periods, which are as follows:

The first rental period is (24 months), while the duration of each subsequent rental period based on the variable rental financing contract is (12 months), in which the profit percentage is not changed. In the event that he wishes to keep the value of the rental payments unchanged.