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.