Effectively the trade of an asset between a seller and a purchaser. The seller discloses the original cost price and the additional profit, with the sales price being paid on a deferred basis, a very common form of contract for moving liquidity between banks. The International Islamic Financial Market (IIFM) has published a standard document. Involves a deposit-placing bank appointing an agent (wakil) to invest on their behalf. The return, however, must not be guaranteed. It is growing in use as an inter-bank product and the IIFM is working to create an industry standard.
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