What it means
A cost-plus sale: the bank buys an asset and sells it to you at an agreed marked-up price, paid in instalments.
Islamic Finance
Murabaha
مرابحةA cost-plus sale: the bank buys an asset and sells it to you at an agreed marked-up price, paid in instalments.
CategoryIslamic Finance
Pro tip inside1 quick win
What “Murabaha” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
In Murabaha, the bank buys an asset — such as a car — and sells it to you at an agreed price that includes the bank's profit, paid in instalments.
Why it matters
It's the most common Islamic finance structure for cars and personal finance in the UAE.
EXAMPLE
Used for Islamic car finance and personal finance.
PRO TIPCompare the total amount payable with conventional offers over the same tenure.
Test yourself
Which of these best describes Murabaha? Tap an answer.
Read more about Murabaha
Guides that use this term — and a tool to put it into practice.
