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Murabaha Sale On Commodity Owned By Promising Buyer
Is it permissible for a bank to contract a Murabaha in order to sell the client goods that are owned by the client himself?
A Murabaha is a sale in which the seller sells goods owned by himself at a known cost plus profit. The transaction described in the question is not a valid Murabaha transaction. Furthermore, the said transaction is not valid in Shariah under any mode of financing, since it involves buying and selling for oneself, which is forbidden. It is among the essentials of a valid contract that there be two distinct and separate persons who transact in terms of offer and acceptance.

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