Murabaha Financing

Murabaha is a cost-plus sale contract where the bank purchases goods requested by the customer and sells them at a disclosed profit margin. Payment may be deferred or done in installments, but no interest is charged.

Key Principles:

• The bank must own the goods before reselling to the customer.
• The profit margin is pre-determined and fixed, not linked to time.
• The contract is purely a trade transaction, not a loan.
• Applicable only for identifiable goods or assets.
• Used widely for vehicles, business assets, and consumer goods.

Provides working capital for businesses to purchase goods, equipment, or raw materials.

Features:

• The bank purchases goods and sells to the client at a markup.
• Payment made over a fixed term through installments.
• Used for import/export, trade, and manufacturing needs.

Benefits:

• Transparent cost and profit disclosure.
• Enables asset-based financing without interest.
• Supports traders, wholesalers, and SMEs.

A flexible Murabaha line that allows clients to finance recurring purchases within an approved limit.

Features:

• Works like an Islamic revolving credit line.
• Each purchase is a separate Murabaha contract.
• Funds can be re-used upon repayment.

Benefits:

• Improves liquidity management for businesses.
• Enables continuous financing for inventory and supplies.

Provides Sharia-compliant trade finance for importers.

Features:

• The bank opens an L/C to import goods on behalf of the client.
• Once goods arrive, the bank sells them under Murabaha.
• The client pays in installments after taking delivery.

Benefits:

• Facilitates international trade ethically.
• Avoids interest-based borrowing from foreign banks.

Supports exporters' working capital before and after shipment.

Features:

• Pre-shipment: financing raw materials and production costs.
• Post-shipment: financing after goods are shipped awaiting payment.

Benefits:

• Enhances exporter liquidity and operational efficiency.
• Ensures Sharia-compliant financing across export cycles.

A financing mode allowing customers to access liquidity in a Sharia-compliant way through commodity trades.

Features:

• The bank purchases commodities and sells to the customer on deferred terms.
• The customer sells commodities in the market to obtain cash.

Benefits:

• Provides halal cash flow solutions.
• Fully documented, transparent, and compliant.

Facilitates purchase of vehicles for individuals or businesses.

Features:

• Bank buys vehicle and sells it at an agreed markup.
• Flexible repayment schedule up to several years.
• Covers both new and used vehicles.

Benefits:

• Enables interest-free vehicle ownership.
• Transparent pricing and ownership transfer terms.

Finances farm equipment, seeds, and fertilizers for farmers.

Features:

• Bank purchases and resells inputs to farmers.
• Flexible repayment post-harvest.

Benefits:

• Promotes agricultural productivity and rural empowerment.
• Ensures ethical and transparent pricing.

Finances construction or renovation of business premises.

Features:

• Bank purchases materials or assets and sells to the client.
• Payment made on deferred or installment basis.

Benefits:

• Enables property development without riba (interest).
• Promotes growth in Sharia-compliant real estate.

Helps businesses acquire machinery and production equipment.

Features:

• Fixed markup agreed in advance.
• Flexible repayment up to 5–7 years.

Benefits:

• Supports industrial growth and modernization.
• Transparent profit-sharing model without interest.

Provides long-term financing for commercial farms.

Features:

• Bank purchases agricultural machinery or inputs.
• Payment due post-harvest or in flexible intervals.

Benefits:

• Enhances productivity through ethical funding.
• Empowers commercial agribusiness under Sharia principles.

• Sharia-Compliant & Ethical: Aligns financing with Islamic values.
• Predictable Payment Structure: Fixed repayments support financial planning.
• Enhanced Transparency & Trust: Clear disclosure of cost, profit, and obligations.
• Facilitates Business Growth: Enables acquisition of productive assets.
• Shared Prosperity: Promotes fair trade and long-term partnerships.