Musawamah
مساومة
Pronunciation: moo-sah-WAH-mah
A negotiated sale where the seller is not required to disclose the original cost or profit margin.
Definition
A negotiated sale where the seller is not obligated to disclose the original cost or profit margin. Unlike Murabaha (where the cost and markup must be transparent), in Musawamah the buyer and seller negotiate and agree on a final price through bargaining.
It is the most common type of everyday commercial transaction. In Islamic finance, Musawamah can be used when cost-plus transparency is not required or practical.
Related Terms
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Quick Answer
Musawamah (مساومة) — A negotiated sale where the seller is not required to disclose the original cost or profit margin. A negotiated sale where the seller is not obligated to disclose the original cost or profit margin. Unlike Murabaha (where the cost and markup must be transparent), in Musawamah the buyer and seller negotiate and agree on a final price through bargaining.
Key Takeaways
- A negotiated sale where the seller is not required to disclose the original cost or profit margin.
- Category: Contracts
- Related: Murabaha, Bay'
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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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