Can you tell us what is the difference between Bai’ al Musawamah and Murabaha?

In a Musawamah transaction, the buyer of an asset is not aware of the cost incurred by the seller. In contrast, in a Murabaha transaction, the seller must inform the buyer of the cost of the underlying asset.

Ibn Rush (the grandfather) said that scholars prefer Musawamah transactions to Murabaha ones. Ibn Qudamah reported the same opinion from Imam Ahmad Ibn Hanbal too.

They argue that in a Musawamah transactions they are less chance for the seller to lie, deceive or being forgetful, since they are not required to disclose the cost price of the underlying asset.

And Allah knows best!

(Mufti) Billal Omarjee