Musawamah or Murabaha: what’s the difference?

If you have looked into halal instalments, you have probably seen both words. Banks talk about Murabaha. Our certificate says Musawamah. They are close relatives, and it helps to know how they differ.

What they share

Both are sales. In both, the seller must own the item before selling it, one price is fixed when the sale is made, and that price can’t grow if you pay late. Paying later, in instalments, is allowed in both. None of that is a loan, so none of it is interest.

The one difference

In Murabaha, the seller tells you what it paid for the item and how much profit it is adding. The price is openly “cost plus profit”.

In Musawamah, the seller and buyer simply agree a price. The seller doesn’t have to reveal its cost or its margin. It is how most everyday trade works: you see the price, you agree or you don’t.

Why Mobilistan uses Musawamah

Phones are bought from many partner shops, at prices that change often. Musawamah lets us give you one clear price for the phone on a given plan, without turning every sale into a cost calculation. What matters for you is the same in both: you know the full price, the advance and every instalment before you agree, and it never goes up.

Our Musawamah model was reviewed and certified by Al Hijrah Sharia Advisory Services. You can see each step, and the certificate, on our Sharia page.