What is the difference between new and used car loans from foreign and Islamic banks, if foreign banks require documents and set an interest rate of 4% while Islamic banks mention a murabaha of 4%, and does this mean that the terminology differs but the meaning is the same, along with the car being mortgaged to the financing bank? And which Islamic banks in the UAE truly apply Islamic Sharia?

Islamic banks purchase the commodity and take possession of it, then sell it for a known profit. As for foreign banks, they lend the price of the commodity as an interest-based loan with a predetermined interest rate. It is permissible to request documents and papers. Usurious banks determine their percentage on the loaned amount and call it interest (riba), while Islamic banks determine their profit percentage on the commodity they already own and sell it according to the Sharia (definition)-compliant murabaha system. The ruling on a bank depends on its adherence to Sharia controls, not merely its name.