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Tag: MURABAHA
MURABAHA
Sharia mortgages: the Murabaha method
The Murabaha method is a common structure used in Sharia-compliant mortgages, which adhere to Islamic law (Sharia). Sharia prohibits the payment or receipt of interest (riba), so conventional mortgages are not permissible. Instead, Islamic financing uses structures like Murabaha to facilitate home ownership while complying with religious principles. Here’s how the Murabaha method works in… Read more