Murabaha Sale in the Islamic Banking System of Afghanistan

Abstract

Murabaha sale is a contract in which the seller discloses to the buyer the original cost of the commodity along with the agreed profit margin at the time of concluding the contract. If both parties consent, the sale is considered valid. Islamic banks have adopted this contract as one of the most important Islamic financing instruments in their banking activities. In this arrangement, the customer submits a request to the bank to purchase a specific commodity; the bank then buys it and resells it to the customer at a price that includes the original purchase cost plus an agreed profit margin, which is disclosed in advance. However, the extent of the legitimacy and the role of this financing method within the Islamic banking system in Afghanistan requires further study and analysis. This research aims to clarify the position of murabaha sale within the Islamic banking system in Afghanistan. The importance of the study lies in introducing Afghan society to one of the modern Islamic banking methods, namely murabaha. The study adopted a descriptive-analytical library-based methodology. The findings indicate that murabaha is the primary instrument of Islamic financing in Afghan banks; however, its practical implementation faces several challenges, the most prominent of which are weak legal infrastructure, lack of awareness, implementation difficulties, and limited Sharia and regulatory supervision. The study concludes that the successful application of murabaha depends on genuine compliance with Islamic Sharia principles, strengthening supervisory systems, and developing the legal framework governing Islamic banking in Afghanistan.