Murdbalzah Financing
Murabanah is the most predominantly used Islamic fmancial contract. If
the contract is standardized its risk characteristics can be made parable to
interest-based fmancing. Based on similarity in risk characteristics of the
contract with the risk characteristics of interest-based contracts, Murabanah is
approved to be an acceptable mode of fmance in a number of regulatory
jurisdictions. However, such a standardized contract may not be acceptable to all
F iqh scholars. Moreover, as the contract stands at present, there is a lack of
complete uniformity in F iqh viewpoints. The different viewpoints can be a
source of cotmterparry risks as a result of the atmosphere of an ineffective
litigation.