A Murabaha transaction is a contract where one party sells an asset to another party at a profit, with the agreement that the buyer will pay the seller the cost of the asset plus the agreed-upon profit in instalments. This type of financing is considered to be Halal because it is based on a sale transaction, as well as the principles of transparency and fairness. By opposition to a loan that generates an ongoing interest that accrues only by advancement of time and that will add up to the principle in case of late payment or default.