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Commodity Murabahah
  • Commodity Murabahah is a trade–related transaction within Islamic Money Market liquidity management instruments with known return upfront
  • Transacted assets – metal commodity traded at LME or any other Shariah based assets/commodity
  • Basic Shariah requirement for Murabahah;
    • Asset/commodity must be available/exist
    • Must have physical or constructive possession of asset/commodity
    • Purchase price must be known and unconditional to any future event
      • Price cannot be changed once fixed
  • Need to execute the following documentations:
      • Murabahah Purchase/Sale Agreement
      • Agency Agreement, etc

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