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7 Murabaha and Tawarruq

Craig R. Nethercott

From: Islamic Finance: Law and Practice

Edited By: Craig R.Nethercott, David M. Eisenberg

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 03 August 2020

Subject(s):
Management Fee — Syndicated loans — Guarantees and security — Deposit taking — Prudential regulation — Swaps
7.01 The murabaha is probably the most commonly used Islamic finance structure in modern Islamic banking. The simplicity of structure in its current application has promoted its use as a popular and flexible Islamic financing instrument. 7.02 The murabaha contract is understood within the Islamic tradition to have a pre-Islamic origin evidenced in pre-Islamic literature2 and characterized as a fiduciary contract with the objective to assist less knowledgeable buyers in the determination of the fair price of unfamiliar goods. Before the advent of modern finance...
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