Morabaha is a term of Islamic Fiqh that refers to a particular kind of sale, a seller agrees with his purchaser to provide him a specific commodity on a certain profit added to his cost. The basic feature of Morabaha is that the seller discloses the actual cost he has incurred in acquiring the commodity, and then adds some profit thereon. This profit may be in lump sum or may be based on a percentage.
The payment in the case of murabahah may be at sight, or may be on a subsequent date agreed upon by the Seller and Purchaser