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Case 6 Car Mudaraba with Murabaha Assume the following An Islamic bank provides the capital to the Mudaraba The kfdarib buys cars from the dealer

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Case 6 Car Mudaraba with Murabaha Assume the following An Islamic bank provides the capital to the Mudaraba The kfdarib buys cars from the dealer on a spot basis. The Mudarib sells the cars to the buyer on deferred payment basis at cost plus a mark-up on a 36-month-instalment basis (Murabaha sale). The buyer will start repayment at the end of the first month. Each month the Mudarib will deposit the monthly repayment with the bank. 1. Design a flow chart to demonstrate the role played by each party in this transaction, defining all the terms used

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