AboutMurabaha
Murabaha comes from a root Arabic word, ribh, which means ‘increase’.
It is selling of goods as per the purchase price with a defined and agreed profit mark-up. This mark-up may be a percentage of the selling price or a lump sum figure. This transaction may be concluded either without a prior promise to buy, in which case it is called an ordinary Murabaha, or with a promise to buy submitted by a person interested in acquiring goods through the institution, in which case it is called a Financing Murabaha.
