Professional Documents
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Introduction To Murabaha: Release Date
Introduction To Murabaha: Release Date
Version 2.0
Release Date:
Jamad ul Thani 31, 1430 H
June 25, 2009
Prepared By:
Product Development and Shariah
Compliance Department
Definition of Murabaha
Murabaha
Murabaha
Basic rules for Murabaha financing:
Assets to be sold:
a) Should not be used for un-Islamic purpose.
b) Should be in ownership of the seller at the
time of sale; physical or constructive.
Murabaha
Bank
Agreement to
Murabaha
Client
Murabaha
Bank
Agreement to
Murabaha
Agency
Agreement
Client
Murabaha
Agreement to
Murabaha
Client
Agency
Agreement
Disbursement to the agent or
supplier
Supplie
r
Murabaha
Transfer of
Risk
Vendor
Delivery
of goods
Bank
Agent
Murabaha
Bank
Clien
t
Offer to
purchase
Murabaha
Client
Murabaha
Bank
Payment of Price
Client
Application of Murabaha
Applications of Murabaha
Purchase of raw material; for meeting
working capital needs of trade and industry.
Medium to long term requirements for
purchase of land, building and equipment.
Trade finance products including imports,
exports and bill purchase.