Murabahah means sales. Commodity Murabahah refers to the sales transaction of commodities that occur between seller and buyer upon an agreed cost-plus margin prior to transaction.
Below is a representation of a Commodity Murabahah transaction:
This way, the price paid is clear and on a fixed and agreed sale price. No interest cost is incurred, providing security. In today’s Islamic financial setting, Commodity Murabahah is used to facilitate a variety of financial products offered to organisations and the general public.
Commodity Murabahah provides added value in Islamic finance as it upholds the Shariah requirements. A major requirement is the presence of actual product at time of purchase; this ensures the transaction is authentic. In any case where the commodity needs to be monetized it could be sold into the market immediately.
AbleAce Raakin offers commodities for Commodity Murabahah transactions. We ensure the availability of our commodity offerings, and are particular with Shariah guidelines through any transactions, providing comfort and certainty to our Clients.