Murabaha is a contract of sale in which the price of the goods that includes an agreed profit margin is specified. 

Murabaha can be used to finance trading in imported goods or those bought from the local market.  

The goods will not be purchased except after the customer has identified the specific goods or products it wants and the supplier. 

The bank will then confirm the deal to the customer including the price which includes the profit element.
 
The term of the repayment of the Murabaha finance varies depending on the nature of the goods purchased and the customer’s working capital cycle, but usually ranges between 90 and 180 days for raw materials and finished goods, while the Murabaha repayment period may extend up to five years when used to finance the purchase of   machinery and equipment.