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Islamic Finance


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Arbun


A non-refundable deposit which is paid by a potential buyer to a seller, and whereby the former retains the right to proceed with the sale or rescind it. In return, the latter (the seller) has the option to keep deposited money for himself if the buyer backs out and doesn’t conclude the purchase transaction.

Arbun, or also urboun, is an Arabic term (عربون) that translates as security deposits, earnest money or down payment.


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