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It is a sale at the purchase price plus a known and agreed profit margin between the buyer and the seller (selling at a known profit), where the bank intervenes as the first buyer for the supplier, and as a seller for the buyer who orders the purchase (the customer). It means, he buys the commodity in cash and sells it to his customer at the first price plus the agreed profit margin between the two parties. As an Islamic bank, we feel it is our duty to ensure that entrepreneurs are able to focus on building their companies without the stress of monthly interest payments

Murabaha’s importance comes from finding a formula that allows Islamic banks to finance in accordance with their principles and Islamic law, whether to meet the exploitative needs of their customers (stock, raw materials, etc…) or their investments. Also, it is an appropriate and important service for local commercial activities and business owners are interested in this service because it provides reassurance and security and includes many benefits and advantages.
The way of the work of Murabaha is simple, only the customer has to choose what he wants and the bank takes care of buying and owning, then concluding the deal. Then, the customer liquidates his account with the bank according to the agreement. The duration of Murabaha financing varies depending on the nature and type of purchases and the life period of the capital (usually from 180 to 360 days for raw materials and finished goods, and it may reach 5 years if these purchases are machinery and equipment.



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