Murabaha

Islamic finance.

Murabaha is a sharia-compliant financing arrangement under which a bank buys an asset and sells it on to the customer at an agreed mark-up. The customer, who could not otherwise afford to buy the asset, pays in instalments.

Murabaha is sometimes known as 'cost plus financing'.

See also

• Islamic finance
• Sukuk
• Reverse murabaha
• Sharia-compliant fixed income capital markets instruments for cross-border transactions