CRITICAL STUDY OF COMMODITY MURĀBAḤAH PRACTICE OF ISLAMIC BANKS FROM SHARĪAH PERSPECTIVE

Commodity Murābahah prevalent in Islamic banks resembles Tawarruq contract and lil Amir bi al-shira. Classical fiqh used to be a trust sale which known profit was charged above the cost price. use as tool for managing interbank liquidity between banks. There are mainly two methods conclude it, i.e., finance giving taking. For sake of concluding this financing, metals underlying commodities. It is reported that these never change hands or possessions. The same sold commodities numerous times. deposit based on gives fixed returns Financial Institutions. Banks transactions with Conventional most time. In 2020, Development Bank Dubai decided invest USD 500 million each commodity financing. volume such contracts has increased by more than 70 billion; till 2019, total reached up 2.88 trillion. reports its increase 12 % per annum. Murābahah, last variant Purchase Orderer, doubted many needs thorough analysis from perspective Shari'ah rulings. This research aims analyze detail questions validity . employs qualitative method analyses jurisprudence principles. findings article show some serious issues product.