Musawamah and Murabaha are key financing tools in Islamic banking that facilitate trade ethically. Murabaha follows a cost-plus-profit structure where the seller discloses the original price, offering transparency in transactions. Musawamah, however, is a sale contract where the seller is not required to reveal the cost, allowing for price negotiation. Both approaches ensure fair dealings while maintaining compliance with Shariah principles. This video breaks down their differences and applications in Islamic finance.
