Local Commodities
Local Commoditis
What is Murabaha?
Murabaha is a widely utilized Islamic financing structure that ensures
Sharia compliance by avoiding Riba (interest). It involves the sale of goods
at a profit margin, with the cost and profit agreed upon by both parties. This
method provides a transparent and ethical way to finance various needs .
How Murabaha Works?
✓ Purchase by Bank: The bank purchases the commodity as requested
by the client .
✓ Sale to Client: The bank sells the commodity to the client at a
marked-up price, which includes a profit margin .
✓ Deferred Payment: The client pays the agreed-upon price over a
specified period .
What are the features Murabaha?
✓ Transparency: The cost and profit margin are disclosed upfront,
ensuring clarity in transactions .
✓ Sharia Compliance: Murabaha adheres to Islamic principles by
avoiding interest-based dealings .
✓ Predictability: Clients know the exact amount they need to pay,
avoiding any uncertainties .
How is Murabaha applied?
Murabaha is used for financing consumer goods, real estate, and business
equipment. It is popular among individuals and businesses seeking a
Sharia-compliant financing option.
Murabaha stands out as an ethical and transparent financing method in
Islamic finance. By providing a clear and predetermined profit margin,
it ensures compliance with Sharia principles while meeting various
financing needs .
Our Clients/Partners
Our clients list include major Kuwaiti Islamic banks, in addition to a number of finance companies
