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Security In A Murabaha
What form of security is permitted in a Murabaha?
According to AAOIFI Shariah Standard 8 (Murabaha), Clause 5: "The institution should ask the customer to provide lawful security…the institution may receive a third party guarantee or the pledge of the investment account of the customer or the pledge of any item of real or moveable property…" Sections 5/2, 5/3, and other sections in clause 5 provide further detail on the terms and conditions associated with securing a Murabaha which we recommend that you read.

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