Murabahah is a particular kind of sale, where the seller expressly mentions the cost he has incurred on the commodities for sale and sells it to another person by adding some profit or mark-up thereon which is known to the buyer. Source: Wikipedia

Bai' al-Inah (Sale and buy-back)

A financing facility involving two separate contracts. In the first contract a financier sells an asset to a customer on deferred payment terms. Immediately after, the financier repurchases the same asset from the customer on cash terms at a price lower than that of the deferred payment sale, and it could be vice versa. Source: IBFIM, Securities Commission Malaysia (SC)


Tawarruq/Monetization refers to the process of purchasing a commodity for a deferred price determined through Musawama (Bargaining) or Murabahah (Mark-up Sale), and selling it to a third party for a spot price so as to obtain cash. Source: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)

Musharakah (Partnership or joint venture financing)

Musharakah (contractual partnership) means an agreement between two or more parties to combine their assets, labour or liabilities for the purpose of making profits. Source: AAOIFI