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Kafalah is a guarantee or suretyship agreement that serves as assurance regarding obligations or performance. In other words, kafalah is useful to stop any unfavorable alteration that can result in ambiguous or unforeseen outcomes with regard to the purpose or foundation of a transaction.
 In order to safeguard the import of products, guarantees are frequently employed. In this situation, a bank will offer a guarantee once the exporter releases the third party from responsibility for the items.Â
Both the exporter and the importer may be sure that they will receive their agreed-upon payments in the end—the price for the exporter and the goods for the importer, respectively.
Kafalah is also spelled “kifalah“.
