What it means
A commodity trade that lets you obtain cash: the bank sells you a commodity on deferred payment, which is then sold for cash.
Islamic Finance
Tawarruq
تورقA commodity trade that lets you obtain cash: the bank sells you a commodity on deferred payment, which is then sold for cash.
CategoryIslamic Finance
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What “Tawarruq” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
In Tawarruq, the bank sells you a commodity on deferred payment and the commodity is then sold to give you cash. Many Islamic personal finance products in the UAE use it.
Why it matters
It lets Islamic banks provide cash finance without interest.
EXAMPLE
Used in many Islamic personal finance products.
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Read more about Tawarruq
Guides that use this term — and a tool to put it into practice.
