Cost-plus sale (مرابحة) and leasing (إجارة) can be valid financing tools when their conditions are fulfilled. The criticism is not that they are inherently identical to interest.
The concern is that they were allowed for financing where partnership is difficult, yet they came to dominate banking operations and were often priced using conventional benchmarks.
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Islamic Banking: The Core Philosophy and the Musharakah Gap
Cost-plus sale (مرابحة) and leasing (إجارة) can be valid financing tools when their conditions are fulfilled. The criticism is not that they are inherently identical to interest.
The concern is that they were allowed for financing where partnership is difficult, yet they came to dominate banking operations and were often priced using conventional benchmarks.