A construction company is looking at a new project,but requires finance to pay for materials.They approach an Islamic bank who agree to buy the materials and resell it to the company on credit.What is this type of contract called?

Question

Quizplus · Accepted Answer

This contract is called Murabahah, which is a type of sale contract where the seller (in this case, the Islamic bank) discloses the cost of the item being sold and adds a profit margin, which becomes the selling price. The buyer (construction company) then purchases the item on credit, paying the agreed-upon price over a set period of time.

A Construction Company Is Looking at a New Project,but Requires