Murabaha
Short definition
Participative (Islamic) finance product where bank buys asset and resells to client with agreed profit margin.
Detailed definition
Murabaha is flagship product of Moroccan participative finance. Sharia-compliant (no interest/riba), works by purchase-resale: bank buys requested asset (car, house) then resells to client with fixed profit margin, payable in several installments. Available at 5 licensed participative banks (Al Akhdar, Assafa, Najmah, BTI, Umnia). Effective rate often equivalent to conventional credit (4-6%).
Concrete example
House purchase 1M MAD via Murabaha over 20 years, 4.5%/year margin. Total Murabaha price = 1M + (4.5% × 20 × 1M) ≈ 1.9M MAD (equivalent to conventional credit).
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