EXTENSION OF APPLICATION FINANCING IN THE FORM OF MURABAHA FORMULA WITH ORDER OF PURCHASING IN SAUDI ISLAMIC BANKS (A CASE STUDY OF AL-RAJHI BANK)
The study aimed to investigate the extension of application financing in the form of Murabaha formula with order of purchasing in Saudi Islamic banks. The problem of the study entails the extension of the impact of financing in the form of Murabaha formula in increasing the Islamic banks’ profits and risks. Moreover, the study identifies Rajihi Banks ‘experience in applying financing in the form of Murabaha formula. The study is based on analytical descriptive approach in dealing with the case study and analyzing the data to answer the study questions and test its hypotheses. The study reached to the following most crucial results: Murabaha formula is considered one of the most acceptable and profitable forms of dealing and the least risky, interest in capital, guarantees provided and the surrounding economic conditions. The study recommends that qualifying of the Islamic banking cadre with high ability and competence in marketing and making programs is necessary, thus, holding conferences and seminars on Islamic accounting standards should be conducted; In addition, convincing other banks with these standards in order to move from usury to halal selling, and thus, there will be a shift in the most banks to work according to Islamic system not the usurious system.
Murabaha Formula, Islamic Accounting Standards, Halal Selling, Usurious System, Financing in The Form of Murabaha Formula.