Murabahah has a significant role as a financial contracts compared to other types of banking transactions. This research aims to clarify the jurisprudential matters pertaining to Murabahah as used in the banking sector, particularly on the concept of Murabahah, its legitimacy, pillars and types. It also discusses the rules and the nature of Murabahah and the percentage of its usage in Islamic banks. In completing this research, the researcher used inductive and analytical methods. This study concluded that the percentage of usage relating to Murabahah financing in Islamic banks is evident as practical tools. The research also concluded that Murabahah contract is based on two principles i.e. (i) mentioning the original price (cost), and (ii) profit margin. These are common denominators in definitions of Murabahah as provided by the four schools of legal thought. It is also found that the concept of Murabahah as discussed by Dr. Sami Hamoud is based on what Imam Al-Shafi’i mentioned in his prominent book of Fiqh titled “Al Umm”. It is agreed among Muslim jurists regarding the principles of original price plus profit for Murabahah financing.
Fiqh Murabaha, Rules, Banking Murabaha, Islamic banks