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Islamic Finance


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Cash Murabaha


A type of murabaha (cost-plus sale) in which the purchaser pays the agreed amount (price plus market-up, or thaman plus ribh) for the goods at the time of sale. It is a contract of sale where goods are sold for a price equal to the original cost plus a specified profit margin (hamish al-ribh). Cash murabaha is usually sought by those who don’t have sufficient knowledge about the market of a specific good, and therefore resort to the specialized knowledge of murabaha sellers.

Cash murabaha (المرابحة النقدية) is the opposite of credit murabaha (deferred murabaha).


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