Murabaha Contract Research Articles

Analisis Perbedaan Penggunaan Metode Anuitas dan Proporsional Murabahah pada Bank Syariah

This study aims to analyze the differences in the use of proportional annuity and murabaha methods in Islamic banks. This study uses a qualitative approach by describing and describe the data through the opinions of several experts, experiences, and theories related to differences in the use of annuity and proportional murabaha methods in Islamic banks. Based on the method used, it is concluded that the annuity method and the proportional method are methods that are commonly applied in Islamic financial institutions and provide benefits (mashlahah) for the growth of Islamic banks. The purpose of using the annuity and proportional method is to implement Islamic bank financial reporting in a good, accurate, measurable, and in accordance with sharia principles through sharia accounting. The difference between the annuity method and the proportional method lies in the income and expenditure of murabaha financing, the difference between the effective value and the value of the murabaha contract/contract is amortized over the term of the contract using a variety of different methods, and margin income on murabaha contracts.

Sharia Compliance on Murabaha Financing in Sharia Rural Banks: A Review of Recent Practices

One of the most significant concerns in the practice of Sharia Rural Banks is Islamic compliance. This is necessary to guarantee that the policies, provisions, processes, and procedures, as well as the Sharia Rural Bank’s (BPRS) business activities, are in accordance with the provisions and Sharia Principles. The aim in this paper is to extensively evaluate whether Sharia rural banks have completely implemented and conformed with Sharia norms and values, particularly when it comes to Murabaha financing practices. It elaborates on the compliance assessment from the initial application of Murabaha to its complete execution. It also explores the BPRS debt settlement plan, which is in accordance with the DSN-MUI Fatwa, and discusses the OJK Policy on the restructuring process during the Covid-19 crisis. The paper used a normative-empirical research method with employing statutory and conceptual approaches. The análysis of data is described in qualitative-descriptive where the data was obtained from library and empirical research. The findings show that, with a few outliers, the DSN-MUI Fatwa and OJK Policy are implemented in the execution of Murabaha contracts at BPRS. Even during a pandemic crisis, when many customers were unable to settle their debts, the bank was compelled to postpone the debt while still adhering to Sharia principles. However, certain features, particularly the application of the Murabaha contract that is preceded by a wakalah contract, are thought to be in contradiction of the DSN-MUI fatwa on Murabaha.

Uji Kesyariahan Akad Murabahah pada Produk Pembiayaan Bank Sumut Syariah Kcp Kota Baru Marelan

Banks are financial institutions that have a very important role in developing the country's economy. In the banking world, there is a dual banking system known in the community as conventional banking and Islamic banking. Islamic banks are banks that operate in accordance with sharia principles or banks whose operating procedures refer to the Koran and al-hadith. One of the contracts in Islamic banking products is the Murabaha contract. Murabahah contract is a financing contract that is most often used by banks because it has a low risk. In order for a murabahah contract to be like sharia principles, there must be two separate buying and selling transactions. First, namely transactions between suppliers and banks, this is done before the second transaction takes place, namely transactions between banks and customers. These two transactions are unavoidable in order to comply with sharia principles.

ISLAMIC MURABAHA CONTRACTS AND ITS ROLE IN IMPROVING THE ECONOMIC LEVEL OF LIBYAN FAMILIES (AN ANALYTICAL DESCRIPTIVE STUDY ON THE JUMHOURIA BANK)

Murabaha has a great place among the types of banking transactions in most Islamic countries. Murabaha under Islamic law means selling the commodity at the price at which it was bought and increasing the profit. The Bank of the Republic - which is considered the largest commercial bank affiliated to the Central Bank of Libya One of the most important findings of the study is that the Islamic Murabaha contracts in Jumhouria Bank are divided into two main types: 1-Murabaha for the order to buy “internal Murabaha”: It is conducted with individuals in the purchase of cars, furniture and others. 2-Import Murabaha: which takes place with companies by opening letters of credit to customers with a contract to sell goods with import Murabaha. Key words: Islamıc Murabaha Contracts; The Economic Level; Libyan Families

Shariah objectives and their effects on contracts: المقاصد والمآلات وآثارها على العقود

This study used a deductive approach to determine the Sharia objectives in ruling some contracts to be forbidden, an analytical approach to determine the aims of competent individuals, an inductive approach to determine the views of jurisprudents regarding Murabaha contracts, and a comparative approach to compare the objectives of Sharia to the contractor’s aims and goals in their contracts. The study provides some recommendations including the need for an increased focus on the study of Sharia objectives and to adopt this branch of study as a set of standards to promote the jurisprudential view and control similar issues; and the need to achieve an Islamic banking model that achieves the Sharia objectives and provides opportunities for societal development The study developed a mechanism for an aims- oriented view to deal with suspicions arising around contracts, within a methodology that enables jurisprudential preference according to the Sharia objectives, in order to reach Sharia rulings that align and agree with Sharia objectives.

Penerapan Fatwa DSN MUI Tentang Murabaha Bilwakalah Di BMT Bina Ihsanul Fikri (BIF) Bugisan Yogyakarta

The BMF KSPS BIF in its business is divided into two namely Baitul Maal (social business) and Business (Baitul Tamwil). This social business is engaged in collecting Zakat, Infaq and Sadaqah funds and mentoring them to eight ashnaf. The priority scale for poverty alleviation through productive economic programs and scholarships. Its business ventures are engaged in empowering the lower class economic community with intensification of BIT in conducting murabhah financing using the media of wakalah, sometimes murabaha contracts in BMT often precede wakalah contracts. The presence of media wakalah to members in murabaha financing in BMT BIF is not wise and not careful in doing murabaha contracts when wakalah. On April 1, 2000 (26 Dzulhijjah 1420) MUI fatwa No.04 / DSN-MUI / IV / 2000 stipulated that if BMT wanted to represent members to buy goods from third parties, the murabahah sale and purchase agreement must be made after the goods in principle became belongs to BMT. In other words, authorization (wakalah) from BMT to any member or third party must be done before the murabahah sale agreement takes place. In this study the author wants to know about how the application of murabaha financing when the time is carried out by BMT BIF to its members. And how is the suitability of Fatwa DSN Number 04 / DSN-MUI / IV / 2000 in implementing murabahah financing when it is at the Bugisan BMF BIT Yogyakarta.Keywords: Murabaha bil wakalah, BMT BIF, Fatwa DSN MUI.

PENGARUH PEMBIAYAAN MURABAHAH TERHADAP PERKEMBANGAN USAHA MIKRO KECIL MENENGAH (UMKM) PADA BAITUL MAL WAT- TAMWIL (BMT)

The development of Islamic economics in Indonesia takes place so rapidly. In 1992, BMT was the forerunner of the birth of Islamic banks. Then the development of BMT grew alive after receiving support from the Small Business Business Incubation Foundation (YINBUK) which was initiated by the Indonesian Ulema Council (MUI). Along with this, Islamic financial institutions with a micro scope, refer to Law Number 25 of 1992 concerning Cooperatives and Ministerial Decree No. Baitul Maal wat-Tamwil (BMT) is also increasingly showing its existence. BMT which is legally formal as a sharia microfinance institution with a cooperative legal entity which is different from Islamic banks. The difference is in the legal aspect where Islamic banks are under the auspices of Bank Indonesia (BI) while BMTs are under the State Ministry of Cooperatives and MSMEs.6 Ba'i al-Murabahah, namely buying and selling mabi' with ra's al-mal (cost of goods) plus a number of conditions agreed in the contract.9 In a murabahah contract, the seller must notify the cost of goods he bought and determine a level of profit in addition. Murabaha contracts can be made for purchases by purchase order. In terms of Imam Shafi.I in the book Al-Um, known as Al-Amir bi ash syira.10 According to Ascarya, Murabahah is an Islamic fiqh term which means a certain form of buying and selling when the seller states the cost of acquiring the goods, including the price of the goods and other costs incurred to obtain the goods, and the desired level of profit. Judging from the above phenomenon, Murabahah Financing can affect the development of micro, small and medium enterprises (MSMEs) in BMT. The purpose of this study was to determine how the effect of Murabahah Financing on the development of Micro, Small and Medium Enterprises (MSMEs) in BMT The number of samples in this study was 78 respondents, this study used a quantitative approach. The data collection technique in this study used a questionnaire, and the sampling technique used the incidental sampling method using the slovin formula. The data obtained was then processed using the SPSS 22 application. The results of this study indicate that the value of t count > t table (4.207 > 1.993) and a significant value of 0.000 < 0.05 which means that partially the Murabahah variable has a positive and significant effect on the development of MSMEs in BMT.

The Effect of Profit Sharing Financing and Receivables towards Total Assets in Islamic Banking: Case Study in BNI Syariah

The objective of my research is to observe at the relationship between receivables, profit-sharing financing to total assets at BNI Syariah Bank from 2016-2020. Total assets in BNI Syariah frequently endure fluctuations in total assets each year, whether receivables and profit-sharing financing have a significant effect on variable Y (total assets). The method that researchers run is a quantitative method using the help of SPPS software, while the variables that influence are the dependent variable receivables and profit-sharing financing. The funding channelled by BNI Syariah is essentially the same as other Islamic banks in Indonesia. Because it still uses an agreement that has long practised in the Islamic banking system, such as the Murabaha contract for the provision of receivables, Mudharabah and Musyarakah contracts for profit sharing between customers and banks. The relationship between Receivables and Revenue Sharing Financing has a positive correlation between variables. This research can also provide some connection between Murabahah and Musharaka which are one of the main product sources of BNI Syariah bank. The originality of the research that the researcher makes is his own, it is not copied and that the researcher's research idea is new and can add new knowledge.

Comparison of Murabahah Akad with Ijarah Muntahiya Bit Tamlik Akad in KPR Faedah Financing In Bank Bri Syariah KCP Kopo (Kabupeten Bandung)

Bank syariah are banks that operate by Sharia principles by following its teachings and staying away from the prohibitions listed in the Al-Quran and Hadith, including practices that were carried out during the time of the Prophet Muhammad, namely accepting deposits, channeling funds, and making transfers have become a part that is not separated from the life of the Islamic ummah even since the time of the Prophet. KPR Faedah is a type of service provided by banks to customers running in the housing sector, banks are expected to provide financing to customers to purchase houses or renovate houses, apartments, shop houses, shop houses, kiosks, or transferring KPR Faedah take-over from other banks. . KPR Faedah BRI Syariah KCP Kopo uses the Murabahah (sale and purchase) contract or the Ijārah Muntahiya Bit Tamlik contract (lease-purchase). However, Bit Tamlik's Ijarah Muntahiya contract was not very enthusiastic. This study aims to compare the Murabahah contract and the Ijarah Muntahiya Bit Tamlik contract on KPR Faedah BRI Syariah KCP Kopo financing so that we can know the similarities and differences as well as the advantages and disadvantages of the two contracts. The type of data used in this study is qualitative data, qualitative data is data obtained directly from the field in the form of characteristics, characteristics, explanations, and information in the form of knowledge, thoughts, and theories. The research method used is the comparative method, namely stating the comparison between one sample or variable with another sample or variable. Sources of data used are primary data and secondary data. Data collection techniques used were observation, interviews, literature study, and documentation. The results showed a comparison of the Murabahah contract and the Ijarah Muntahiya Bit Tamlik contract on KPR Faedah BRI Syariah KCP Kopo financing seen from several aspects, namely the similarities and differences, advantages and disadvantages, so it can be concluded that the Murabahah contract cannot adjust the price when the market price rises because of the selling price. and the margin is set at the beginning, in contrast to Ijarah Muntahiya Bit Tamlik, with the review of umrah, the rental price can follow the market price at that time. However, at Bank BRI Syariah KCP Kopo KPR Faedah customers prefer the Murabaha contract, as well as the researchers, chose to use the Murabaha contract in this KPR Faedah product because the process is easier and the installments remain until the end of the period.

Earnest Money And its applications in Islamic banks: هامش الجديّة وتطبيقاته في المصارف الإسلامية

The final contracting stage between the two parties to the contract is preceded by an introductory stage required by the nature of the contract, especially those contracts that are completely related to the conclusion of other contracts, as is the case in the Murabaha contract of the ordering of the purchase and the lease ending with ownership and other complex contracts, which require special procedures appropriate to the types of risks related to them, which are arranged Certain obligations on the parties to the new contractual relationship, and this requires us to study and edit such similar forms. Among the most prominent practical pictures of these preliminary procedures is what is known as a contract with a deposit, or the first payment that is paid before the contract as a payment of the price, and what is known in the Islamic banks is what is known as the Earnest Money and it is not a single name, but each has its juristic conditioning and its special effects in terms of the motivation, purpose and legal conditioning. For her, therefore, this research comes to clarify the concept of Earnest Money and the reasons for it, the difference between it and the deposit and the down payment, as well as identify its applications in Islamic banks and legal adjustment to it, and the accounting method for dealing with it, and the research came out with some results and recommendations.

The Effect of Profit Sharing Financing and Receivables towards Total Assets in Islamic Banking: Case Study in BNI Syariah

The objective of my research is to observe at the relationship between receivables, profit-sharing financing to total assets at BNI Syariah Bank from 2016-2020. Total assets in BNI Syariah frequently endure fluctuations in total assets each year, whether receivables and profit-sharing financing have a significant effect on variable Y (total assets). The method that researchers run is a quantitative method using the help of SPPS software, while the variables that influence are the dependent variable receivables and profit-sharing financing. The funding channelled by BNI Syariah is essentially the same as other Islamic banks in Indonesia. Because it still uses an agreement that has long practised in the Islamic banking system, such as the Murabaha contract for the provision of receivables, Mudharabah and Musyarakah contracts for profit sharing between customers and banks. The relationship between Receivables and Revenue Sharing Financing has a positive correlation between variables. This research can also provide some connection between Murabahah and Musharaka which are one of the main product sources of BNI Syariah bank. The originality of the research that the researcher makes is his own, it is not copied and that the researcher's research idea is new and can add new knowledge.

Penerapan UTAUT untuk Memahami Akseptansi Mahasiswa terhadap Inovasi Cicilan Buku Berakad Murabahah

The increasing interest of the Muslim community in Indonesia in the consumption of goods and services labeled halal has certainly made all things with a halal perspective appear. Fintech (financial technology) as a form of digitization of the rapid development of technology is also used in the financial sector. The focus discussed in this study is the obligation of students to have books and how the website innovation system works using the murabaha contract. This study uses a phenomenological approach by conducting interviews with 40 students of the Muhammadiyah University of Sidoarjo who have used and made transactions on the IjabQabul.id website. The data obtained from the interviews were reprocessed using the Atlas.ti software. The results showed that from the IjabQabul.id website, students were quite helped by the facilities provided, such as payment methods that could be made online or collectively as well as payment methods that could be made in installments. Additions and feature enhancements are also expected by users to be added to the website.

Analisis Pelaksanaan Akad Murabahah Pada Pembiayaan Mikro di Bank BRI Syariah Kcp Subang.

Artikel ini membahas tentang Analisis Pelaksanaan Akad Murabahah Pada Pembiayaan Mikro di Bank BRI Syariah Kcp Subang. Program Studi Ekonomi Syariah, STIES Syariah Indonesia Purwakarta, 1441 H/2019 M. Pembiayaan mikro adalah pembiayaan bank kepada nasabah perorangan atau badan usaha yang bergerak di bidang UMKM untuk membiayai kebutuhan usahanya melalui pembiayaan modal kerja atau pembiayaan investasi. Akad murabahah adalah penyedian dana atau tagihan yang yang dapat dipersamakan dengan itu untuk transaksi jual beli barang sebesar harga pokok ditambah margin berdasarkan persetujuan atau kesepakatan antara Bank dengan nasabah yang mewajibkan nasabah untuk melunasi hutang/kewajibannya. Penelitian ini bertujuan untuk mengetahui bagaimana pelaksanaan akad murabahah pada pembiayaan mikro di Bank BRI Syariah Kcp Subang. Dan untuk mengetahui analisis pelaksanaan akad murabahah pada pembiayaan mikro di Bank BRI Syariah Kcp Subang. Penelitian ini merupakan jenis penelitian kualitatif deskriptif yang meneliti tentang pelaksanaan akad murabahah pada pembiayaan mikro di Bank BRI Syariah Kcp Subang. Data penelitian ini terdiri dari data primer dan data sekunder yang diperoleh melalui angket, observasi, wawancara dan dokumentasi. Data yang diperoleh kemudian dianalisis menggunakan metode analisi deskriptif. Hasil dari penelitian ini diketahui bahwa pelaksanaan akad murabahah pada pembiayaan mikro yakni secara teori akad murabahah yang dilakukan oleh Bank BRI Syariah Kcp Subang dalam melakukan pembiayaan mikro dapat dikatakan syariah apabila melakukan akad wakalah terlebih dahulu baru melakukan akad murabahah setelah barang yang dimaksud sudah menjadi milik bank. Kemudian pihak Bank menjualnya kepada nasabah ditambah margin keuntungan untuk dibayar nasabah pada jangka waktu tertentu, sesuai dengan kesepakatan awal.

Consumers’ choice of the services of Islamic banks in dual banking system

Purpose The purpose of this study is to examine how the Islamic banks fix their mark-up for Murabaha contract strategically when traditional banks also co-exist in a country. This study also aims to investigate what role the varying degree of Iman (faith) plays in shaping the preferences of the consumers to choose between the services of Islamic banks and the traditional banks. Design/methodology/approach This paper constructs a mathematical model like the Bertrand competition in neo-classical economic theory. A religiosity parameter for the consumers has been inserted into their demand functions for their products. A simple optimization technique from mathematics has been used to arrive at the results. Findings This paper applies game theory to analyze how Islamic banks determine their mark-up when they are facing competition with traditional banks. It considers the demand functions of the consumers for the products of Islamic banks and traditional banks. The demand functions depend on the mark-up, as well as on the interest rate with the difference that they also depend on the religiosity of the consumers. The paper shows that Islamic, as well as the conventional banks charge lower prices for their loans if there is consideration of religiosity aspect of the consumers. Further, it shows that as religiosity increases in a country, the lending rates decrease. The theoretical result is also consistent with the real practices of the banks. Therefore, the dual banking system is welfare enhancing for the customers. Research limitations/implications The Islamic banks can leverage the religiosity aspect of the consumers and expand their business competitively by charging them lower mark-up. The adherence of religious customers to the services of Islamic banks creates some kind of loyalty premium for them. This could lead to the reduction of mark-up price triggering competition between both types of banks to attract more customers. Therefore, it is prudent for the government to develop a system for furthering the quality of honesty that is an integral part of Islam. Originality/value To the best of author’s knowledge, this is the first paper where it has been analyzed theoretically how the Islamic banks determine their mark-up for Murabaha contract strategically. This approach explains why the rate of return of Islamic banks hinges on the interest rates of traditional banks. One of the novel feature of this paper is that religiosity character of the consumer is good for banks because religiosity prohibits the people to default on their loans.

ANALYSIS OF THE EFFECT OF MURABAHA FINANCE IN SHARIA BANKS ON THE ECONOMIC GROWTH OF AGRICULTURAL SECTOR

The purpose of this study is to analyze the influence of Islamic banks murabaha financing on the economic growth of the agricultural sector which measured by Gross Domestic Product (GDP) of the agricultural sector and analyze the characteristics of murabaha for the agricultural sector. The analytical method used is simple linear regression and also a qualitative overall analysis. Data analyzed from 2010-2018 were 36, obtained from the Otoritas Jasa Keuangan (OJK) and Badan Pusat Statistik (BPS). The results showed that murabaha financing had a positive effect on economic growth in the agricultural sector. Murabaha products in Islamic banking are one of the easiest products to use as an alternative to financing the agricultural sector. Because of its simplicity, this product has become more frequently used and most of the distribution of funds is through murabaha contracts. Even so the murabaha scheme of the agricultural sector has different characteristics from other sectors, considering that farmers can only pay the installments after the harvest. That way, Islamic banking must have the right source of funds for this financing, such as mudharabah muqayyadah. Not all agricultural financing activities must use the murabaha contract, because in its application it must also be adjusted to the terms and funding period, so Islamic Banks can use alternative contracts that are more appropriate.

Risiko Hukum Dalam Perjanjian Pembiayaan Murabahah Di Perbankan Syariah

ABSTRACT
 The purpose of this study is for sharia; and analysis of the legal risks of Murabaha agreements in Islamic banking. From the way of approach, this research is normative juridical research, which is research based on literature research to obtain secondary data in the field of law and at the same time document research is also carried out that serves to complement the data obtained from the literature. The conclusion of the study is that there is a legal risk of financing using Murabaha contracts in Islamic banking because it has not met sharia principles because the purchase price calculation contract is based on the amount of financing, not based on the historical price of the goods purchased which potentially contain elements of usury.

Penerapan Akad Murabahah pada Produk MULIA di Pegadaian Jalancagak Menurut Perspektif Ekonomi Syariah

This research was conducted at Pegadaian Jalancagak Subang Regency. Pegadaian is one of the financial institutions that offers Logam Mulia investment services, one of which is called MULIA (Murabahah Logam Mulia For Abadi Investment). Product Mulia is a financing offer to customers for the purchase of gold bars produced by PT. Aneka Tambang (ANTAM). This study aims to determine how MULIA product provisions, the application of the murabaha contract on MULIA products and the impact of MULIA products for pawnshops and the community. This type of research is qualitative using descriptive analysis method. Data sources used include primary and secondary data. From the results of the discussion the researchers found that there were several provisions in the application of the MULIA product murabahah in Pegadaian Jalancagak that were not in accordance with the provisions of the Shari'a, including; first concerning the object of the contract or Marhun which was not raised or did not exist during the contract. Second, the sanctions that are permitted according to the Shari'a are applicable to customers who are capable but neglect or postpone delay of payment but do not apply to customers who are truly unable to pay, but in its application at Jalancagak pawnshop requires all customers to receive sanctions or pay fines if unable pay without exception. Third, in the application of sanctions / fines regarding funds generated from fines input as corporate income, which according to Shari'a provisions should be intended for social funds

Effect Of Financing In Sharia Business Units On Profitability And Financing Risk Management

Financing is one of the main functions of the operations of sharia banks, including those carried out by the Syari'ah Business Unit. Funds disbursed to the Syari'ah Business Unit are carried out by means of buying and selling, namely Murabaha contracts, greetings, and istisna agreements, then by investing in mudharabah contracts and musyarakah contracts and performing rental services with ijarah contracts. Syarai'ah Banking by carrying out the financing benefits from buying and selling, obtaining profit sharing from investing and obtaining rental opinions from the ijarah contract. Thus, the three types of income will produce and affect the level of profitability depending on the financial services carried out by PerbangkanSyari'ah, including those carried out by the Syari'ah Business Unit. In carrying out the financing there is an element of risk that needs to be managed properly and professionally, so that the risk can be minimized in the sense that the amount of financing that is categorized as non-current does not negatively affect profitability, as well as risk management such as non-perfomed financing with various contracts, can be minimized along with the level of collectibility for the financing that has been channeled. The researcher will also carry out various statistical tests in this study so that in this study the results of the conclusions are positive and can be useful for anyone who has an interest in this research. The study was conducted with a quantitative method, with the conclusion that there was a positive relationship between financing with murabaha, mudharabah, musyarakah and ijarah contracts towards profitability and in general also negatively affected the NPF with the understanding that even though there was an increase in financing distribution with contracts, however, risk control over the possibility of NPF occurring can be overcome except for financing with Murabaha contracts.This research is expected to be useful for stakeholders related to this research and for future researchers to be able to improve further research.

IMPLEMENTASI MANAJEMEN PEMBIAYAAN MURABAHAH KREDIT PEMILIKAN RUMAH PADA BANK BTN SYARIAH KCPS INDRAMAYU

This research was also motivated by the combination of Murabaha and wakalah contracts, and the KPR financing was carried out by wakalah agreements in advance and conducted Murabaha contracts. This research is in the form of qualitative research. The results of this study are the management of KPR financing at Bank BTN Syariah KCPS Indramayu, which follows existing procedures, such as filing financing until the disbursement process and the binding process of collateral through a notary public. Of course, the purpose of the financing is to both benefits both parties, namely the Customer and Developer, as well as Bank BTN Syariah KCPS Indramayu, with the existence of the KPR financing, which can improve people's welfare to own a house. Murabaha and wakalah financing at Bank BTN Syariah KCPS Indramayu is following sharia law, which refers to the proposition of the Qur'an and the hadith as well as the Sharia Board Fatwa No: 04 / DSN-MUI / IV / 2000 concerning Murabahah and Fatwa of the Sharia Council No: 10 / DSN-MUI / IV / 2000 concerning Wakalah.

Murabaha and Musharakah Moutanaquissah pricing: an interest-free approach

PurposeThis study aims to provide an interest-free valuation methodology for Murabaha and Musharakah Moutanaquissah contracts. Indeed, In Islamic finance, Murabaha contracts are widely negotiated. Their yield depends mainly on the contracted profit margin. In the current practices, this latter is based on a reference interest rate, which is highly criticized in Islamic literature, just like Musharakah Moutanaquissah contracts. In this perspective, authors suggest a new valuation methodology with parameters related to the real economy.Design/methodology/approachThe authors apply an indirect method to determine a lower bound of the profit margin of a Murabaha contract. Considering Musharakah Moutanaquissah as an equivalent contract, the new valuation methodology is based on participation and focuses on parameters from the real economy: the market rent and the rate of return used for an equivalent project.FindingsThe results show that the pricing of Musharakah Moutanaquissah contracts could be based on several parameters linked to the real economy. Consequently, an implied value of the profit margin could be computed. Also, the interest rate is no longer implicated in the pricing of neither Murabaha nor Musharakah Moutanaquissah contracts.Research limitations/implicationsThe valuation methodology is applicable only if the underlying asset’s financing can be made with Murabaha and Musharakah Moutanaquissah contracts.Practical implicationsThis work will restore the link between Islamic contracts and the real economy. For Islamic banks in particular, the suggested model would reduce the exposure to reputational risk and enhance the compliance to the Sharia (Islamic Law).Originality/valueSeveral studies have analyzed the dependence between Islamic contracts and interest rates. In general, these studies confirm this dependence and few of them have suggested alternatives. Thus, the authors contribute to the literature by providing a practical and applicable model to detach the valuation of Murabaha and Musharakah Moutanaquissah from the interest rate.