← Interest Free Banking Financing: Practitioner

Murabaha in depth

Module 01 / 9 · 60 min · Free preview

Structure, document and price a Murabaha so that the bank truly buys, owns and holds the asset before it sells it at a disclosed, fixed price.

In this module you will learn to

Apply the Sharia'h conditions on the Murabaha asset and on the Murabaha price
Put the Murabaha processing steps and documents in the right order, including the agency (Wakalah) stage
Calculate a Murabaha sale price and installment schedule from the cost, profit rate and term
Spot the errors that make a Murabaha non-compliant and say how to correct them

Built on

Erudite Africa training outline: Interest Free Banking Financing, Three-Level Course, Level 2 Practitioner (October 2026)
A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: definitions, governance, roles, modes, products, processing, pricing, collateral and disbursement
AAOIFI Sharia'h Standards, including No. 8 Murabaha, No. 9 Ijarah, No. 10 Salam and No. 11 Istisna'; the host bank's Sharia'h Advisory Committee rulings take precedence in that bank
NBE Directive No. SBB/72/2019, Licensing and Authorization of Interest Free Banking Business; Directive No. SBB/91/2024, Bank Corporate Governance; Directive No. NBE/INT/13/2026, Interest Rates (As Amended)
NBE Foreign Exchange Directive No. FXD/01/2024 as amended, including Directive No. FXD/05/2026

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.