Is it permissible to name the Murabaha contract "financing"?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Contracts must be called by their true names, especially if the naming leads to an illusion of a -forbidden act or deception, such as calling murabaha a loan or a usurious loan murabaha. As for calling murabaha financing, there is no harm in it, because murabaha is often used to finance the purchase of something whose price a person does not possess in cash, and this is permissible provided that the murabaha is real.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/125694
Where this answer came from
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- Ftawy
- Original fatwa ID
- 125694
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy