‘mudaraba’ means a sharia arrangement between a bank and a client of that bank whereby-

 

(a)     funds are deposited with the bank by the client;

 

(b)     the anticipated return in respect of the sharia arrangement is dependent on the amount deposited by the client in combination with the duration of the period for which the funds are deposited;

 

(c)     the bank invests the funds deposited by the client in other sharia arrangements;

 

(d)     the client bears the risk of the loss in respect of the sharia arrangements contemplated in paragraph (c); and

 

(e)     the return in respect of the sharia arrangements contemplated in paragraph (c) is divided between the client and the bank as agreed at the time that the client deposits the funds with the bank;

‘murabaha’ means a sharia arrangement between a financier and a client of that financier, one of which is a bank or listed company whereby-

[Words preceding paragraph (a) substituted by section 45 of Act 25 of 2015 effective on 1 January 2016]

(a)     the financier will acquire an asset from a third party (the seller) for the benefit of the client on such terms and conditions as are agreed upon between the client and the seller;

(b)     the client-

(i)      will acquire the asset from the financier within 180 days after the acquisition of the asset by the financier contemplated in paragraph (a); and

(ii)     agrees to pay to the financier a total amount that-

(aa)   exceeds the amount payable by the financier to the seller as consideration to acquire the asset;

(bb)   is calculated with reference to the consideration payable by the financier to the seller in combination with the duration of the sharia arrangement; and

(cc)    may not exceed the amount agreed upon between the financier and the client when the sharia arrangement is entered into; and

(c)     no amount is received by or accrues to the financier in respect of that asset other than an amount contemplated in paragraph (b)(ii);