1.

INTRODUCTION Commodity to the Customer at the Selling

 Al-mumtakalat walmuntazil financing Price (“Sale Transaction”).
facility is to facilitate the customer for the  Conditions: subject of murabahah must
purchase of completed or under exist, ownership of bank at the sale in a
construction of residential property or physical or constructive form, asset must
shop houses. be something of value that is classified as
 Purposes: get cash on spot property.
 the operation of Tawarruq is supervised by  Profit margin:compensation to the bank
Shariah Committee (SC) in addition to the for the time value of its money, actively
advice of the Shariah Advisory Council involved in trading process of our client’s
(SAC) which is the highest Shariah body business
set up at Bank Negara Malaysia (BNM)
can be sought to ensure uniformity in b. Wakalah
views and practices.  Dual agency:
 The concept of Tawarruq or commodity 1) Customer-bank (purchase agent)
Murabahah has been widely applied in o Purchase commodity from broker
Islamic finance (Zukri, 2009). In on behalf of the customer
Malaysia, it was officially endorsed as a 2) Customer-bank (selling agent)
permissible instrument to be used in o Sell commodity to broker B on
financial market especially for personal behalf of customer
financing by the Shariah Advisory Council
of Bank Negara Malaysia (BNM) on 28 3. CONCLUSION
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2. SHARIAH CONTRACT APPLCABLE you realise your dream home into a reality
a. Murabahah with our attractive financing terms with our
 Some portion of total finance may be Baiti Home Financing-i Facility.
offered as an interest free loan, however,
the banking institutions have to make
profit in order to stay in business. Hence,
what course of action is open to the bank?
The Murabaha model offers a solution.
The bank purchases the commodity on
cash and sells it to the customer on a
profit. Since the client has no money, he
buys the commodity on deferred payment
basis. Thus, the client got the commodity
for which he wanted the finance and the
Islamic bank made some profit on the
amount it had spent in acquiring the
commodity.
 The purchase and selling price and the
profit margin must be clearly stated at the
time of the sale agreement. Payment of the
Murabaha price may be in spot, in
instalments or in lump sum after a certain
period of time.
 Bank will purchase the Commodity from a
supplier at the Purchase Price (“Purchase
Transaction”), and thereafter, sell the