Murabaha
Murabaha is a sales contract that fixes the price of certain goods or items required by a customer, including a pre-agreed profit margin. The principle can be applied to local or imported goods, but no purchase is made unless the customer identifies the product and the retailer. DIB fixes the deal for him, along with profit.
The settlement term for Murabaha financing varies according to the nature of the purchases and the working capital cycle of the customers – typically from 90 to 180 days for raw materials and finished goods, but up to five years for machinery and equipment.