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Murabaha is a contract of sale in which the price of the goods that includes an agreed profit margin is specified. Murabaha can be used to finance trading in imported goods or those bought from the local market.  The goods will not be purchased except after the customer has identified the specific goods or products  it wants and the supplier. The bank will then confirm the deal to the customer including the price which includes the profit element.
The term of the repayment of the Murabaha finance varies depending on the nature of the goods purchased and the customer's working capital cycle, but usually ranges between 90 and 180 days for raw materials and finished goods, while the Murabaha repayment period may extend up to five years when used to finance the purchase of   machinery and equipment.  

  Last Updated:05/06/2014
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Al Baraka Islamic Bank - Bahrain (AIB - Bahrain) established 1984 in Bahrain and up the years has pioneered the development of Isl... read more>>

Current Accounts: On demand accounts are not entitled to receive profits but do not bear any loss either. They are designed speci... read more>>

  Commercial & Corporate
Murabaha is an Islamic form of asset financing and has a fixed term and a pre-determined profit. In a Murabaha the bank buys a spe... read more>>
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