Islamic Murabaha:
It is the sale of a commodity at the same price the seller purchased it for, plus a known and agreed-upon profit margin, either as a percentage of the price or a fixed amount. This can happen without a prior promise, which is called ordinary Murabaha, or it can occur based on a promise to purchase from the person wishing to obtain the commodity through the bank, known as Murabaha al-Amir bil-Shira’ (Murabaha by order to buy). This type of sale is among the sales of trust, relying on clear disclosure of the purchase price or cost (including usual expenses) with an agreed profit margin.

The majority of Islamic scholars have ruled that Murabaha is permissible based on the following evidence:

• It falls under the general meaning of Allah’s statement: "And Allah has permitted trade" (Quranic verse).

• It is also supported by analogy with the incident of tawliyah: the Prophet Muhammad (peace be upon him) bought a she-camel from Abu Bakr for a price, as Abu Bakr had initially wanted to gift it to him, but the Prophet insisted on paying the price.