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Glossary

Murabaha

is an Islamic financing structure in which an intermediary buys a property with free and clear title. Murabaha is not an interest-bearing loan, which is considered riba (or excess), and is an acceptable form of credit sale under Sharia (Islamic religious law). Similar in structure to a rent-to-own arrangement, the intermediary retains ownership of the property until the loan is paid in full.

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