1. Murabaha also known as cost plus contract is a kind of trade credits or loans and mainly helps exporters in meeting their funding requirements which is not the obligation in conventional investment banking
2. The main feature of this arrangement is that profit margin of financier is known to buyer which is not so in conventional investment banking.
3. In this arrangement financier buys the assets and sells to the client and buyer pays to the financier in installments consisting of following two elements which is not so in conventional investment banking. They are
# cost of assets financed
# financier`s profit on acquisation of assets
other methods of asset securitization in Islamic investment banking :-
1. Istisna
2. Musharaka
3. Sukuk
4. Ijara
5. Salam
6. Mudaraba
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