Commodity Murabaha
مرابحة السلع
Pronunciation: moo-RAH-bah-hah as-SIL-ah
A Murabaha transaction using commodities (often metals) as the underlying asset to facilitate cash financing.
Definition
A variation of Murabaha used to provide cash financing. The financier purchases a commodity (typically metals on the London Metal Exchange) and sells it to the client at a markup on deferred terms. The client then sells the commodity for cash to a third party at the current market price, receiving the cash they need.
Also known as Tawarruq when structured through a third-party sale. Widely used for personal financing and treasury management in Islamic banking.
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Quick Answer
Commodity Murabaha (مرابحة السلع) — A Murabaha transaction using commodities (often metals) as the underlying asset to facilitate cash financing. A variation of Murabaha used to provide cash financing. The financier purchases a commodity (typically metals on the London Metal Exchange) and sells it to the client at a markup on deferred terms.
Key Takeaways
- A Murabaha transaction using commodities (often metals) as the underlying asset to facilitate cash financing.
- Category: Financing Structures
- Related: Murabaha, Tawarruq
- Compare related Shariah-compliant products on HalalWallet
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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