Murabaḥah is a term for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold, which covers the cost of what?
Murabaha Murabaḥah, murabaḥa or murâbaḥah (Arabic: مرابحة‎ ‎ , derived from "ribh" Arabic: ربح‎ ‎ , meaning profit) is a term of "fiqh" (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold. In recent decades it has become a term for a very common form of Islamic (i.e. "shariah compliant") financing, where the price is marked-up in exchange for allowing the buyer to defer payment (a contract with deferred payment being known as "bai-muajjal"). "Murabaha" financing is similar to a rent-to-own arrangement in the non-Muslim world, with the intermediary (i.e. the lending bank) retaining ownership of the item being sold until the loan is paid in full. There are also Islamic investment funds and sukuk (Islamic bonds) that use "murabahah" contracts.
Shariah Board A Sharia Board (also Shariah Supervisory Board, Advisory Board or Religious Board) certifies Islamic financial products as being Sharia-compliant (i.e. in accordance with Islamic law). Because compliance with shariah law is the underlying reason for the existence of Islamic finance, Islamic banks (and conventional banking institutions that offer Islamic banking products and services) should establish a Shariah Supervisory Board (SSB) to advise them on whether their products comply, and to ensure that their operations and activities comply with Shariah principles. There are also national sharia boards in many Muslim majority countries that regulate Islamic financial institutions nationwide.