For short term financing requirements, we offer Murabaha mode of finance to our customers, which is designed to meet working capital requirements. For example, if you need finance for purchasing raw materials for your industry or are trading in goods then you could use Murabaha to meet your financial needs.

Murabaha
Murabaha is one of the most common modes of finance employed by Islamic Banks worldwide. Murabaha is based on the purchase requirements of each customer. It can be defined as a sales transaction where Gulf African Bank purchases the commodity and sells it after adding an agreed profit. Thus, it is not a loan given on interest - it the sale of a commodity on a deferred price.

Murabaha involves the purchase of a commodity by Gulf African Bank on behalf of a customer and the subsequent resale to the customer on cost-plus-profit basis. The cost and profit margin to the bank is expressly disclosed to the customer.

In simple words, rather than advancing money to the customer, Gulf African Bank buys the commodity from a third party and sells it to the customer at an agreed price, which includes an element of profit.