• This Practice Note presents a high-level analysis of the documentation and transaction mechanics of the Murabaha transaction.

• IFI : Islamic financial institution.

• SPV : Special purpose vehicle.

A basic murabaha and a commodity murabaha arrangement can both be structured to facilitate a single transaction, or to operate on a revolving basis so that several transactions can be entered into under the same facility. For more information, see The Structure and Required Elements of a Murabaha Transaction and Commodities Murabaha.