---
title: "What is Collateralised murabahah? | IslamicOpenFinance™"
description: "A murabaha placement secured by collateral such as sukuk, used as an Islamic alternative to a repo."
url: https://islamicopenfinance.com/glossary/collateralised-murabahah/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Treasury, liquidity and hedging](https://islamicopenfinance.com/glossary/#treasury)

Treasury, liquidity and hedging

# Collateralised murabahah

A murabaha placement secured by collateral such as sukuk, used as an Islamic alternative to a repo.

Collateralised murabahah is a commodity murabaha in which the deferred payment obligation is secured by collateral, typically sukuk, pledged by the party receiving the funds. It gives Islamic institutions a secured funding tool comparable in purpose to a repurchase agreement, while the collateral remains a pledge rather than a sale and buy-back. IIFM publishes a Master Collateralized Murabahah Agreement for these transactions.

## Sources

- [IIFM, Published Standards: IIFM Master Collateralized Murabahah Agreement (MCMA)](https://www.iifm.net/standards/published-standards)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Commodity murabaha** Interbank and treasury deals in which commodities are bought and sold on deferred payment to place or raise short-term funds.](https://islamicopenfinance.com/glossary/commodity-murabaha/) [**Rahn** A pledge: an asset held as collateral for a debt, which can be sold to repay it if the debtor defaults.](https://islamicopenfinance.com/glossary/rahn/) [**Short-term liquidity sukuk** Short-term, tradable sukuk that Islamic banks hold as liquid assets and use to manage cash, including across borders.](https://islamicopenfinance.com/glossary/liquidity-sukuk/)

**Treasury, liquidity and hedging**

1. [Commodity murabaha](https://islamicopenfinance.com/glossary/commodity-murabaha/)
2. [Wa'd (promise)](https://islamicopenfinance.com/glossary/wad/)
3. [Muwaadah (mutual promise)](https://islamicopenfinance.com/glossary/muwaadah/)
4. [Tahawwut (hedging)](https://islamicopenfinance.com/glossary/tahawwut/)
5. [Islamic profit rate swap](https://islamicopenfinance.com/glossary/profit-rate-swap/)
6. [Islamic FX forward](https://islamicopenfinance.com/glossary/islamic-fx-forward/)
7. [Islamic cross-currency swap](https://islamicopenfinance.com/glossary/islamic-cross-currency-swap/)
8. [Interbank investment wakalah](https://islamicopenfinance.com/glossary/interbank-investment-wakalah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)