Murabaha & Mudarabah

Two structures sit behind most of what Milestone offers:

Murabaha — cost-plus sale

The bank purchases goods or an asset requested by a customer and resells them at a disclosed, agreed mark-up, payable in instalments. Because the mark-up is fixed and disclosed upfront — never a compounding interest rate — this avoids riba while still letting a customer acquire an asset now and pay over time.

Mudarabah — profit-sharing trust financing

The bank provides capital to a customer or venture that contributes labour and expertise. Profits are shared on a pre-agreed ratio, decided before the venture begins. If the venture makes a loss through no fault of the entrepreneur, the bank — as capital provider — bears the financial loss, while the entrepreneur's loss is the time and effort invested. This genuine risk-sharing is central to why Mudarabah is considered halal, unlike a fixed-interest loan where the lender bears no risk at all.