Calculate Murabaha, Ijara, and Musharaka payments โ Sharia-compliant financing for Saudi Arabia. Free, no login, instant results.
Cost-plus financing: bank buys asset at cost price, sells to you at a marked-up price payable in instalments. No interest โ profit is declared upfront.
โ ๏ธ Results are estimates. Contact your bank for official Murabaha offers. Al Rajhi, Alinma, and Saudi National Bank all offer Murabaha home and car financing.
Lease financing: bank buys the asset and leases it to you. You pay rent for a fixed period. At end of lease, ownership transfers to you. Common for cars and equipment in KSA.
โ ๏ธ Estimates only. Al Rajhi Auto, Bidaya, and Saudi Industrial Development Fund (SIDF) offer Ijara financing in KSA.
Partnership financing: you and the bank co-own the asset. You gradually buy out the bank's share while paying rent on the bank's portion. Used for home finance in KSA.
โ ๏ธ Estimates only. Contact Saudi National Bank (SNB), Alinma Bank, or Al Rajhi Bank for official Musharaka home finance offers.
Saudi Arabia is the world's largest market for Islamic finance products. All major banks โ Al Rajhi, Saudi National Bank, Alinma, Riyad Bank โ offer Sharia-compliant financing. Understanding how Murabaha, Ijara, and Musharaka work helps you compare products and make informed decisions.
Murabaha is the most common Islamic finance product in Saudi Arabia, used for home financing, car loans, and personal finance. Here's how it works:
Ijara is the Islamic equivalent of leasing or hire-purchase financing:
Diminishing Musharaka is the most transparent Islamic home finance product:
| Product | Best For | Key Feature |
|---|---|---|
| Murabaha | Homes, cars, personal goods | Fixed total cost from Day 1 |
| Ijara | Cars, equipment, commercial | Lease structure, tax-efficient |
| Musharaka | Home purchase (most transparent) | Co-ownership, equity builds monthly |
Yes. In a conventional loan, the bank lends money and charges interest. In Islamic finance, the bank takes ownership of an asset and either sells it (Murabaha), leases it (Ijara), or co-owns it (Musharaka) with you. The profit comes from the asset transaction, not from lending money. The Sharia-compliance is reviewed by each bank's own Islamic Scholars Board (ููุฆุฉ ุงูุฑูุงุจุฉ ุงูุดุฑุนูุฉ).
Murabaha home finance rates in KSA typically range from 3.5% to 6% annual profit rate. Car Ijara rates range from 4% to 7%. Rates vary by bank, your salary, employment status, and the property value. Al Rajhi, Alinma, and Saudi National Bank generally offer competitive rates. Always compare at least 3 banks before committing.
Expats face restrictions on property ownership in Saudi Arabia โ non-Saudis can only own property in specific areas (designated foreign ownership zones). Most Islamic home finance products are designed for Saudi nationals. Expats typically use Ijara or Murabaha for car and personal finance, which is fully available to all residents.
Saudi banks typically finance up to 85โ90% of the property value for Saudi nationals (with a 10โ15% down payment). Practical maximum amounts vary by income โ banks use a debt-burden ratio, usually limiting your total monthly payments to 33โ45% of your monthly salary. Use our Murabaha calculator above to estimate your eligibility.
Tawarruq is another Islamic finance structure used for personal cash financing. The bank buys a commodity on your behalf and sells it to you on credit. You then sell the commodity to a third party for immediate cash. This gives you a lump sum to spend freely (unlike Murabaha which is tied to a specific asset). It is commonly used for personal finance and credit cards in Saudi Arabia.