Murabaha
/ˌmʊrəˈbɑːhə/
Definitions
- (n.) An Islamic finance contract where a seller discloses the cost and profit margin to the buyer, typically involving the sale of goods with deferred payment.
The bank provided financing through a murabaha agreement to purchase the industrial equipment.
Forms
- murabaha
Related terms
See also
Commentary
Murabaha must clearly disclose the cost and profit margin to comply with Islamic law prohibiting interest (riba).
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.