The concept of murabaha in a modern Islamic context (M.Phil. Dissertation)

The objective of the Islamic Banks and Investment Companies is to develop Islamic forms of transaction that do not involve interest which is prohibited in Islam. One of the implications of prohibition of riba is that this prohibition eliminates all debt financing instruments as they exist in the traditional banking system. One of the important characteristics of the Islamic financial instruments is the Risk and Loss and Profit sharing. The murabaha represents a special form of contract for sale of goods where the seller is obliged to disclose to the buyer the initial cost of the goods and the margin of profit he marked. Topics discussed with reference to murabaha include: conditions (regular and special) of the contracts, problems facing murabaha, legal and shari`a definitions, technical uses of murabaha, criticisms of its use, and how its use has changed over time.