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Murabaha Sale On Goods Not Bought By Seller
A client approaches a bank and requests it to finance under a Murabaha contract goods bought by the client itself. The bank should pay the price of goods according to the invoice submitted by the client and charge the same to the client along with a profi
The described transaction is not a valid Murabaha transaction and, furthermore, is unlawful in the Shariah. A Murabaha entails selling a particular commodity that the seller owns, disclosing its cost and adding a profit margin mutually agreed upon by both parties. A Murabaha is not valid for goods that have neither been bought nor received by the seller nor are in his possession.

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