Finance

Dual Currency Bond

October 21, 2021
Islamic Finance

Bay’ al-Muqayadah

October 21, 2021

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Arabic (بيع المتاجرة) for a type of sale (bay’) whereby an Islamic bank sells goods on credit to a customer. The goods are selected by the customer, while the price and payment terms are agreed prior to the actual transaction. In this sense, bay’ al-mutajara is similar to bay’ al-murabaha. However, in bay’ al-murabaha, the seller is legally obliged to reveal the actual price of the underlying goods to the potential buyer.

This sale is also known as bay’ muajjal.

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