Murabahah is the sale and purchase of an asset in which the acquisition cost and the mark-up are disclosed to the purchaser.

Tawarruq, also known as Commodity Murabahah, is a tripartite transaction consisting of two sale and purchase contracts. The first involves the sale of an asset by a seller to a purchaser on a deferred payment basis. Subsequently, the purchaser from the first sale sells the same asset to a third party on a cash and spot basis.