• UAE : +2531.72/0 Jordan : +2294.34/20.76 Bahrain : +1440.77/9.97 Lebanon : +1453.17/-1.72 UAE : +1667.37/0 UAE : +1592.24/0 Egypt : +601.243/0 Kuwait : +6757.1/0 Morocco : +11694.4/-26.9 Oman : +6301.83/15.76 Palestine : +496.52/0.6 Qatar : +7510.289/56.56 Saudi Arabia : +6306.33/0 Tunisia : +5400.21/0

Murabaha

Murabaha is a sale whereby the bank purchases a commodity on the order of a client and then sells it to the client on a cost plus profit basis. The cost incurred by the bank for the commodity and the intended profit rate is pre-agreed by the client.

Murabaha is not considered as a personal loan but a commercial transaction based on the following two fundamental principles:

The bank buys the goods or commodities from its owner and possesses them either actually or constructively and then sells the goods or commodities to the buyer at a profit margin agreed on by the two parties.

The price of the sale is fixed and must not increase in case of delay in payment. It is also not an obligation for the bank to give rebate if payment is made prior to the maturity date.

Murabaha therefore is an Islamic instrument of financing for all types of goods and commodities.