Muamalat Murabahah Tawarruq Financing

Tawarruq is an arrangement that involves a purchase of a commodity or asset based on deferred payment basis by way of Murabahah. In this case, the Customer is purchasing the commodity as the underlying asset from the Bank. The commodity or asset is then sold for cash to a party other than the original seller.

The concept of Tawarruq is applicable for MCash and Al-Istisna Project Financing Facilities.