Murabaha

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Murabaha

A structure in Islamic finance in which one party buys a good for cash and then sells it to a second party for deferred payments. For example, if Joe wishes to buy a house, he asks a bank to purchase it and then sell it to him for a higher price than the bank paid. While the bank pays cash up front, Joe amortizes his payments over an agreed-upon number of years. From Joe's perspective, this is similar to a conventional mortgage because the payments are likely the same. Because there is no debt with interest, a murabaha is thought to conform to Islamic law. However, murabahas are controversial even within Islamic finance because some scholars believe the profit on the second sale imitates interest too closely.

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* SAR 11.25 billion (USD 3 billion) consisting of Murabaha facilities, of which SAR 7.5 billion (USD 2 billion) is a 5-year facility with two 1-year extension options (5+1+1) and SAR 3.75 billion (USD 1 billion) is an annually-renewable 364-day facility.

ARAMCO

It is a Murabaha agreement (a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price) concluded between the Tunisian Company of Electricity and Gas (STEG) and ITFC to finance the import of natural gas for an amount not exceeding $154 million.

HRP examines bill on adoption of guarantee agreement with ITFC

MANAMA: Ziraat Katylym Bankasy has mandated Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, Standard Chartered Bank and Warba Bank (each an initial mandated lead arranger and bookrunner) to arrange a $150,000,000 syndicated dual currency Murabaha financing facility.

Bank ABC set to arrange $150m financing facility

Middle East Payment Services (MEPS) - a leading, innovative payment services provider in the Middle East - has provided Safwa Islamic Bank with a comprehensive Murabaha system.

Middle East Payment Services Equips Safwa Islamic Bank With Murabaha System

Summary: Nasdaq Dubai Murabaha platform is a partnership between Emirates Islamic and Nasdaq Dubai

Murabaha platform passes $100b in Islamic financing transactions

Alizz Islamic Bank has introduced a land financing Murabaha product, with several facilities and simple application process.

Bank nizwa, SQU to offer islamic finance summer programme

He added, "The forces headed towards Murabaha areas after reaching the clinic of Suq Al-khmis, south of the Directorate of Qubaytah, in the north of Lahij''.

Yemeni army announces restoration of new areas in southern province of Lahij

The Murabaha Trade Financing Agreement was signed between the ITFC and the Asia Alliance Bank in Uzbekistan

ITFC signs $100m Murabaha deal in Uzbekistan

Mobile Telecommunications Company Saudi Arabia (Zain KSA) has refinanced and extended the maturity date of its existing syndicated SAR 5.9 billion ($1.57 billion) Murabaha facility for five years.

Zain KSA refinances its SAR 5.9 billion existing Murabaha facility

Chairman of Zain Saudi Arabia Prince Naif bin Sultan RIYADH, June 6 (KUNA) -- Zain mobile company in Saudi Arabia, part of Zain Group, announced Wednesday it has successfully refinanced and extended the maturity date of its existing syndicated SR 5.9 billion (USD 1.57 billion) Murabaha facility for five years.

Zain Saudi Arabia refinances USD 1.5 bln loan deal

Al Yusr, the Islamic Banking Window of Oman Arab Bank (OAB), has announced the launch of a new auto financing offer that provides Al Yusr Islamic Banking customers with an opportunity to obtain financing at competitive Murabaha rates, starting from just five per cent on reducing bases (equivalent to 2.8 per cent flat rate) and with a maximum repayment period of up to ten years.