What is Murabaha?

Murabaha is a particular type of sale where the seller explicitly discloses the cost of the commodity / assets purchased by him, and the expected profit from the sale thereof to the purchaser. In other words, it is a contract where cost of the assets and the expected profit are disclosed by the seller to the potential buyer.


How does it work?

Within a Murabaha, Islamic bank of Afghanistan would upon your request:
  • Purchase the goods/material from the vendor;
  • Disclose the cost and profit before signing the agreement; and
  • Sell the same goods/material either on immediate or deferred payment basis.

How will it benefit you?

Under Murabaha Finance Facility, upon specific request of the Customer, the Bank shall make available amount of financing from pre-approved limit for a specific period of time. Murabaha Finance Transaction will be a credit sale (deferred payment Murabaha). :

Working capital needs, such as purchase of raw material for manufacturing concerns, can be facilitated through Murabaha;

Murabaha can be used to finance imports and exports for the benefits of the industry.

Medium to long-term requirements for purchase of land, building, machinery and equipment’s can also be facilitated through Murabaha;

Financing for consumer durables can be offered on the basis of Murabaha (sale on instalments). It can also be used for financing purchase of construction material for construction or items for house renovation.

The Islamic Bank of Afghanistan offers you a Murabaha Finance to meet your business short term requirement in line with the Shariah principles.

To whom it is offered?



Sole Proprietorships

Within Murabaha, IBA offers below products:

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