Murābaḥah Approval Framework
A trust-based sale (bayʿ al-amānah) in which the institution discloses the original cost of an asset and adds a clearly stated mark-up, with payment deferred under agreed terms.
OSAS-MUR™ — Approval Memorandum Template
Section 1 — Product Information
Section 2 — Shariah Structure
Section 6 — Shariah Opinion
Essential vs Prohibited Elements
Essential Conditions (must hold)
- Asset must physically exist and be Shariah-permissible (ḥalāl)
- Institution acquires legal ownership prior to onward sale
- Institution assumes constructive or actual possession (qabḍ)
- Original cost is disclosed truthfully to the client
- Profit margin is disclosed and mutually agreed
- Sale price is fixed at contract execution — no fluctuation
- Deferred-payment terms (tenor, instalments, late-payment policy) are documented
Prohibited Elements (must absent)
- Bayʿ al-dayn — sale of debt to third parties at a discount
- Gharar — excessive uncertainty in asset, price or delivery
- Ribā — any interest accrual on the deferred price
- Asset ownership bypass — same-day back-to-back without genuine ownership transfer
- Penalty income retention — late-payment charges must be channelled to charity
Step-by-Step Flow
- 1
Client Purchase Request
Client submits MPO (Murābaḥah Purchase Order) with asset specifications, supplier and indicative cost.
- 2
Institution Purchases Asset
Institution executes a binding sale contract directly with the supplier.
- 3
Institution Takes Ownership & Possession
Legal title and qabḍ (constructive possession) are recorded before any onward sale.
- 4
Murābaḥah Sale Executed
Institution sells the asset to the client at cost + disclosed profit, on deferred terms.
- 5
Deferred Payment Schedule
Client services the fixed sale price per the agreed instalment plan.
- 6
Completion & Release
Final payment, release of any collateral, post-completion documentation archived.
Standard Document Set
The proposed Murābaḥah structure is reviewed and found compliant with applicable Shariah principles subject to the conditions stated herein.
Reviewed under OSAS-MUR™ · AAOIFI Shariah Standard No. 8 — Murābaḥah to the Purchase Orderer
Reviewed and Approved by Abdul-Azeez Onike Morufu — Registered Shariah Adviser, Securities Commission Malaysia
Advisory Subset of OFIS™
OSAS™ · Onike Shariah Advisory Standards
Reviewed and Approved by Abdul-Azeez Onike Morufu — Registered Shariah Adviser, Securities Commission Malaysia
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