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The Principles and Practices of Shariah in Islamic Finance - page 33 / 49





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Shares as subject matter of Murabahah

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properties as subject matter of Murabahah

Usufruct as subject matter of Murabahah

56.Shariah-compliant shares may be made as asset of a Murabahah transaction.

Illustration 16: Purchase of Shares as a Murabahah Transaction

An entrepreneur, seeking funding to purchase certain Shariah- compliant stocks, draws up a Murabahah contract with an IFI to purchase for him shares at RM10 per share. After buying the shares, the IFI sells them to the entrepreneur at a mark-up price of RM12 per share.

57. Intellectual properties such as trademarks, brands, patents and copyright, also qualify as assets of Murabahah transaction.

Illustration 17: Purchase of Goodwill as a Murabahah Transaction

A customer seeks ๎Œnancing from an IFI to purchase a brand name of a distributor known as “Fitforall”valued at RM500,000 that will enable the customer to be part of the retail chain to sell the goods under the brand name. The brand provides product quality assurance to existing and potential brand-loyal customers, as well as an established international distribution network. The IFI may purchase the brand name and sell it to the customer at a mark-up price of RM750,000 to be paid over a period of 5 years.

58. Usufructs such as air tickets qualify as assets to be purchased and sold on Murabahah basis.

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