Murabaha

Murabaha is a cost-plus sale commonly used to finance acquisition of a specified asset. The provider buys and owns the asset, then sells it to the customer at a price comprising disclosed cost and an agreed profit margin; payment can be deferred or instalment-based. The economic and legal substance, actual ownership and contractual obligations matter. It differs from simply lending cash at interest. Risk and treatment depend on the executed contract and applicable standards; the current FM syllabus requires an explanation rather than a calculation.