The People’s Bank of Zanzibar Ltd established Islamic banking services in 2011 to add a new package to its service offering to the public. The bank started the proposition by offering deposit products and towards the end of the year it started offering financing facilities in the form of Bai Murabahah and Bai Muajjal to commercial and individual customers. As the products proved to be a success, management continued with offering other products to cope with market demand and hence, Mortgage Financing, Education financing and IKHLAS Rent Financing were introduced. Currently, additional products like Commodity Murabbah (TAWARRUQ), Musharaka, Istisna, Salam, Hajj financing and Murabahah Revolving Line are in offering.
Some of the beneficiaries do not accept customers' cheques as mode of payment. This knock back comes when the beneficiary fears return of cheques for reason of insufficient funds.