Structure of a Murabaha Transaction (English/Arabic)
Type
Practical Guidance
Document type
Practice Note
Date
21 Aug 2023
Jurisdiction
Kuwait
Taxonomy
Islamic Finance
Copyright
LexisNexis
Please click on the Arabic PDF icon to download the Arabic version of this document.
Overview
Murabaha is one of the most prevalent contracts in the Islamic finance industry and accounts for approximately 75% of the financial operations of some Islamic banks.
This Practice Note provides a high-level overview on the prevalent structure of Murabaha in the Middle East region.
Definitions
Murabaha: A sale contract where a customer approaches an Islamic bank for financing the purchase of specific goods required by the customer. It is also called cost-plus financing.
Practical Guidance
