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Causes and Problems in the Growth of Murabahah Financing

Murabahah Research Paper

Research Method


Although Murabahah is the main authentic Islamic modes of finance in Islamic banking system but the Islamic banking industry is at-least partially failed to promote this basic Islamic mode of finance. The present study tries to find out the causes compelling Islamic banks to restrict the growth of Murabahah financing to a minimum level. Lack of interest of the bank management in Murabahah financing, lack of committed, honest and skilful entrepreneurs, lack of expertize, lack of government support are some of the main causes of slow growth of Murabahah as a mode of finance.

Research Objective:

Objective of this research is to examine the importance of Murabahah compared to Islamic finance policies in long term Islamic finance programs in the Islamic bank industry. By evaluating the perceptions of different group of peoples and assessing their opinions on Murabahah. Negative viewpoints can be used to promote better understanding of the concept.

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