← Interest Free Banking Financing: Practitioner

Tawarruq and Tijarah

Module 04 / 9 · 45 min

Provide cash through a genuine commodity sale only within the Sharia'h Advisory Committee's limits, and finance a producer's finished goods through Tijarah.

In this module you will learn to

Describe the Tawarruq steps and the conditions that keep each sale real and separate
Spot the red flags that turn a Tawarruq into a disguised cash loan
Structure a Tijarah in which the producer sells finished goods as the bank's agent
Choose between Murabaha, Tawarruq and Tijarah for a customer's cash or stock need

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.