The purpose of murabaha is to finance a purchase without payment of interest that most Muslims (especially most scholars) consider riba (usurpation) and therefore haram (forbidden). [5] Murabaha is now the “most widespread” or “default” type of Islamic finance. [6] Some Muslims (including Rakaan Kayali) complain that Murabaha does not eliminate interest because it guarantees the amount of profits it earns[23] and thus amounts to a legal “iyal” or “trick” to defeat the intent of Sharia. [54] Khalid Zaheer considers this to be an example of how two conventional Sharia contracts (Murabahah and Bai Muajjal) can be combined to make it a non-compliant contract. [74] The murabaha basic transaction is a cost-plus-profit purchase in which the item the bank buys is something the customer buys, but has no cash at the time to buy directly. [48] However, there are other murabaha transactions in which the customer wants/needs cash and the product or merchandise purchased by the bank is a means of achieving an end. (To violate the requirement formulated by Usmani and others.) Murabaah, murabaa or murbaa (Arabic: , derived from Arabic Ribh: , that is, profit) was originally a fiqh term (Islamic jurisprudence) for a sales contract by which the buyer and seller agree on the price of the markup (benefit) or the “cost-plus”[1] for the item sold. (n). [2] In recent decades, it has become a term for a very common form of Islamic financing (i.e. “Sharia-compliant”), where the price is marked in return for how the buyer can pay over time – for example, with monthly payments (a contract with a deferral of payment known as bai-muajjal).

Murabaha`s financing is similar to a clean rental scheme in the non-Muslim world, via (for example. B the credit bank) retaining ownership of the item sold until the loan is fully paid. [3] There are also Islamic investment funds and Sukuk (Islamic bonds) that use Mourabah contracts. [4] Usmani notes that while it may seem to some people that it is the case for some people to give a buyer more time, to pay for a product/a commodity (deferred payment) in exchange for the payment of a higher price, it is the same thing that paying interest on a loan[29] is a mistake. In fact, in the same way that a buyer can pay more for a product/commodity if the seller has a cleaner store or a shorter staff, the buyer can also pay more if more time is given to complete payment for that product or that merchandise. [29] If this happens, the supplement they pay is not Riba, but only “a secondary factor in determining price.” In such a case, according to Usmani, “the price is against a commodity and not against money” – and therefore allowed in Islam. [30] If a credit transaction is made without the purchase of a particular commodity or product (i.e., a loan is remunerated), the additional fee for deferred payment is for “nothing but time” and is therefore prohibited in riba. [30] According to another promoter of Islamic finance, Faleel Jamaldeen, “Murabaha`s payments represent debt” and are therefore not “negotiable” as Islamic financial instruments, making them unpopular with investors (after Jamaldeen). [31] Murabaha, also called cost financing plus, is an Islamic financing structure in which the seller and buyer the costs and costs are set up.