Murabaha is a particular kind of sale where the seller expressly
mentions the cost of the sold commodity he has incurred, and sells it to
another person by adding an agreed profit margin. Murabaha
can be used to finance trading in imported goods or those bought from the local
market. The goods will not be purchased except after the customer has
identified the specific goods or products it wants and the supplier. The bank
will then confirm the deal to the customer including the price which includes
the profit element.
The term of the repayment of the Murabaha financing varies depending on the
nature of the goods purchased and the customer's working capital cycle, but
usually ranges between 90 and 180 days for raw materials and finished goods,
while the Murabaha repayment period may extend up to five years when used to finance
the purchase of fixed assets such as machinery and equipment.
For Furthermore details Please
reach out to our Relationship Manager on 00964 7700000388