Bai' al-Inah
بيع العينة
Pronunciation: BAY al-EE-nah
A sale-and-buyback arrangement used to generate cash flow.
Definition
A financing technique where a seller sells an asset to a buyer on deferred payment terms, then immediately repurchases it from the buyer for a lower cash price. The net effect provides the buyer with immediate cash and a deferred obligation — similar to a loan with interest.
Widely used in Malaysian Islamic finance but considered impermissible by most Middle Eastern scholars and AAOIFI, who view it as a legal device (hilah) to circumvent the prohibition on riba.
Related Terms
Tawarruqتورق
A monetization arrangement involving the purchase and immediate resale of a commodity to obtain cash.
Ribaربا
Interest or usury — the most strictly prohibited practice in Islamic finance.
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
Further Reading
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Bai' al-Inah (بيع العينة) — A sale-and-buyback arrangement used to generate cash flow. A financing technique where a seller sells an asset to a buyer on deferred payment terms, then immediately repurchases it from the buyer for a lower cash price. The net effect provides the buyer with immediate cash and a deferred obligation — similar to a loan with interest.
- A sale-and-buyback arrangement used to generate cash flow.
- Category: Contracts
- Related: Tawarruq, Riba, Murabaha
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
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