Islamic Finance Model

Murabaha

Cost-plus sale — the Society buys an asset and resells it at a disclosed mark-up.

Murabaha is a cost-plus sale: the Society purchases goods or assets requested by a member and resells them at a disclosed, agreed mark-up, payable in instalments. Because the mark-up is fixed and disclosed upfront — not a compounding interest rate — this avoids riba while still enabling members to acquire the asset now and pay over time.

BUSCOM Purchases are the most common everyday application of Murabaha at Al-Amanah.

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