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Mark-Up Risk

A type of risk that is associated with sales (buyu) in which the price (thaman) of an underlying object (commodity),...

Bargaining Sale

In Islamic finance, it refers to the selling of a commodity at an agreed upon price irrespective of the original…

Collateralized Murabaha

A type of murabaha (cost-plus sale) which is secured by an issue of sukuk as collateral. It provides an alternative...

Collateralization of Murabaha

The process of securing murabaha by posting- or requiring the posting of- some type of collateral such as an issue...

Commodity Murabaha

A murabaha-based, short-term placement operation that involves the the purchase and sale of commodities in the international exchanges. Islamic banks...

Sukuk al-Murabaha

Certificates of equal value (sukuk) which are issued for the purpose of financing the purchase of goods based on murabaha...

Murabaha Sukuk

Certificates of equal value (sukuk) which are issued for the purpose of financing the purchase of goods based on murabaha...

MPO

An acronym for murabaha to the purchase orderer which is a murabaha transaction whereby the Islamic bank purchases an asset/...

Murabaha Guarantee

In a murabaha to the purchase orderer (MPO) transaction, it is permissible for the purchaser (creditor) to ask the purchase...

Murabaha lil Waaed bil Shira

An Arabic term (المرابحة للواعد بالشراء) that translates as murabaha to the purchase orderer (or wa'aed- the promisor or provider...