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Musawamah in Islamic Finance

Posted on 15th December 2010 by Camille Paldi,

 

 

Musawamah

‘Musawamah is the negotiation of a selling price between two parties without reference by the seller to either costs or asking price. While the seller may or may not have full knowledge of the cost of the item being negotiated, they are under no obligation to reveal these costs as part of the negotiation process. This difference in obligation by the seller is the key distinction between Murabaha and Musawamah with all other rules as described in Murabaha remaining the same. Musawamah is the most common type of trading negotiation seen in Islamic commerce.’ (Wikipedia)

Musawamah Facility Agreement

http://www.secp.gov.pk/divisions/Portal_scd/MFA/Musawamah_agreement.pdf

http://www.sbp.org.pk/press/Essentials/Musawamah%20Facility%20Agreement.htm

Musawamah Financing

http://www.qiib.com.qa/qiib/en/qiibcms.aspx?qcid=15


Posted on 15th December 2010 by Camille Paldi


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