What is services Murabaha, such as financing education, trips and tourism? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is services Murabaha, such as financing education, trips and tourism?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

It is based on the "Ijara mawsufa fi al-dhimma" formula (a forward lease of a service described as an obligation). The bank contracts with the university or the travel company and buys the service (the study place or the trip), then re-leases or sells it to the customer in instalments at an agreed profit margin.

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