Murabaha

Cost-plus-profit trade financing for working capital and asset purchase.

Murabaha is a Shariah-compliant sale contract where the Bank purchases an asset requested by the customer and resells it at a disclosed cost plus an agreed profit margin, payable on spot or deferred terms.

Variants

Murabaha to the Purchase Order

The customer requests the Bank to purchase specific goods, promising to buy them from the Bank upon delivery at cost plus an agreed profit.