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Murabaha


Murabaha is a type of credit sale contract in which goods or financial interest is sold at a price plus an agreed profit margin in the form of either a deducted sum of money or a percentage of the price. (Islamic legal definition) It is a process of purchasing the goods or service at the stated price and reselling it with the original price plus an agreed profit in the form of either a fixed sum of money or a percentage of the price.

 Example: a client asks for financing the purchase of a television set from a supplier of his own choice and pays via installments.