Murabaha vs Traditional Riba Based Finance
| Dimension | Riba-Based Finance | Murabaha (SukukFi) |
|---|---|---|
| Basis | Cash lending at interest | Tied to real assets or capacity |
| Pricing | Interest compounds over time | Profit markup disclosed and agreed upfront |
| Fund flow | Cash disbursed to the borrower | Paid directly to the supplier, confirming delivery |
| Collection basis | Interest schedule | Actual customer payments (receivables) |
- Sharia compliance: The structure avoids riba and ties returns to real economic activity.