Murabahah is the major financing product that can be used for financing to all sectors in the form of: working capital, purchase of goods/assets, Export and Import trade, project financing and so on.
Murabahah is a contract of sale between a customer and the Bank in which the Bank purchases the goods needed by a customer and sells the goods to the customer on a cost-plus basis. Both the profit (mark-up) and the time of payment (usually in installment) are specified in an initial contract. The Bank is the owner of the goods before it sells it to the customer. The bank may require collateral from the customers to secure the financing.
Among the services included in Murabahah are the following;