Our Sharia bridge finance product uses the Murabaha method. Via this method, the finance provider enters into a purchase of commodities on spot basis and on-sells the commodities with a mark-up on a deferred basis.

For example, the financier will buy a commodity (typically a metal) on the open market, then sell this commodity to the customer. Thereafter, the commodity will be sold to a third party, granting the customer the finance they require as a result. The prices and payment schedules are all fixed. The method we use removes any uncertainty in the transaction and the fixed profit element is agreed and capped from the outset, thus protecting the customer.