a brief introduction of islamic mode of banking

1. MURABAHA
Presented by: Khadijah nadeem
Bushra haseen

2. Definition
Murabaha is selling a commodity as per the
purchasing price with a defined and agreed
profit mark-up.
This mark-up may be a percentage of selling
price or a lump sum.

3. cont..
This transaction may be concluded either
without a prior promise to buy, in which case it
is called ordinary MURABAH A.
Or with a prior promise to buy submitted by a
person interested in acquiring goods through
the institution, is called banking Murabaha

4. LEGITIMACY OF
MURABAHA
Analogous To a form called tawliyyah.
e.g transaction between Prophet (SAW) and Harzart
Abubakar

5. Statement of standard
1. PROCEDURES PRIOR TO THE
CONTRACT OF MURABAHA
● The customer’s expression of his wish to acquire an
item through the institution.
● The position of the institution in respect to the
application of the customer for Murabaha to the
purchase orderer
● The promise from the customer.
● Commissions and expenses
● Guarantees related to the commencement of the
transaction

6. 2.Acquisition of title to, and possession of,
the assets by the institution or agent.
● The acquisition of the assets or good by the
institution prior to its sale by means of MURABAHA
to the purchase orderer.
● The institution taking possession of the asset or good,
prior to its sale by MURABAHA to the purchase
orderer.

7. 3. Conclusion of a MURABAHA contract.
4. Guarantees and treatment of
MURABAHA receivables

8. Acquisition Of Title & Possession
Of The Asset
● Institution must take actual or constructive
possession of the item .
● The forms of taking delivery or possession of items
differ according to their nature and customs.
● The item must move from the responsibility of the
supplier to the responsibility of the institution .
● It is obligatory that the point when the risk of the
item is passed on by the institution to the
customer, be clearly identified.

9. Murabaha to purchase orderer
● The type of transaction, which involves the customer’s
promise to purchase the item from the institution, is
called the Murabaha to the purchase orderer.
● Commitment fee
● Urboun
● Syndicated financing
● Credit facility

10. Thank you