Bank Guarantee                                            

Bank Guarantee is an irrevocable obligation in the form of written undertaking of a Bank to pay an agreed sum, in case of default by a third party in fulfilling their obligations under the terms of the Bank Guarantee.

Customer approaches the Bank for guaranteed surety. The Bank agrees to discharge the customer's liability in case of defaults. The Bank gives the guarantee under the concept of Kafalah. Bank Guarantee is not a financing instruments but merely a guarantee.