Also known as bai muajjal, an Islamic finance technique used to finance the acquisition of assets (for example, equity interests, property, machinery or cars) on terms compliant with Sharia. In a bai bithaman ajil transaction, a lender buys an asset desired by the borrower and sells that asset to the borrower for the original purchase price plus a profit element (analogous to the interest amount in a conventional finance transaction). This structure is similar to the murabaha except that the entire payment is usually made in a lump sum on a deferred basis.

For more information on Islamic finance in the US, see Practice Notes:

For more information on Islamic finance in the UK, see Practice notes: