Murabaha Perceptions of Islamic Bankers: Case of Pakistan

Abstract

The paper discusses Murabaha which is among the most significant financing tools in cotemporary Islamic banking practice. The research study is was carried out to assess the opinions and suggestions of Islamic bankers regarding Murabaha as a vital Islamic finance tool and to infer and deduce conclusions that have significance with reference to murabaha by assessing the viewpoints of Islamic bankers. The study attempts to discuss the key factors pertinent to Murabaha financing mechanism and is based on a survey research involving Islamic bankers serving at the five purely Islamic banks operating in Pakistan. The study would provide an insight regarding a highly vital and one of the most utilized tools of Islamic financing throughout the Islamic finance industries globally. The research study endeavors to identify the key factors that are pertinent with regards to Murabaha financing and to explore options to expunge the adverse perceptions regarding Murabaha-based products and services.