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Syndicated Murabaha Financing Facility

A murabaha-based financing facility whereby funds for the purchase of the asset (commodities, durable assets, etc.) are provided by a…

Aqd Al-Ishtirak

Arabic (عقد الإشتراك) for a contract (aqd) that entails sharing in ventures/ businesses and profits (ribh) through specific partnership (sharakah/sharikah).…

Profit and Loss Sharing Contract

In Arabic musharaka (مشاركة). It is a partnership mode of Islamic finance in which partners contribute equal or unequal ratios…

Ribh al-Mithl

Arabic (ربح المثل) for matching rate of profit or prevalent rate of profit or benchmark/reference profit rate. It refers to…

Commodity of Murabaha

The object of a murabaha sale or transaction for which the murabaha buyer pays the murabaha seller cost-plus, i.e., the…

Spot Murabaha

A murabaha transaction that is arranged with no deferral of payment. In this case, the seller only receives a mark-up…

Syndicated Murabaha

A murabaha contract between a purchaser and an investment agent (wakil bil istithmar) acting as mudarib or investment agent on…

Mark-Up Risk

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

Mubadalat al-Arbah

Arabic (مبادلة الأرباح) for profit rate swap. By definition, it is an Islamic swap that entails the exchange of a...

Profit Rate Swap

An Islamic swap that entails the exchange of a floating profit rate for a fixed profit rate, or vice versa....