The Role Of Murabahah In Financing Investment Projects An Applied Study In A Sample In Islamic Banks - Al-Watani Islamic Bank – Baghdad For the years (2014-2018)

Abstract

Islamic banks are financial institutions that derive their basis or principles from the Islamic creed that forbids dealing with interest, as they provide services that do not contradict the provisions of Islamic Sharia, so that they practice investment and financing activity for investment projects using various Islamic financing formulas in order to achieve profit. This study aims to clarify the effect of murabahah in Islamic banks in financing investment projects during the period (2014-2018), taking into account the National Islamic Bank - Baghdad as a case study. This study was able to reach a set of results, the most important of which is the existence of a statistically significant effect of the murabaha rate, the repayment period, and the financing policies in Islamic banks on investment projects. The following are the recommendations: The need for Iraqi Islamic banks to conduct a thorough analysis and study of the benefits of the projects in which they participate with the private sector, especially in light of the successive losses that occur due to this participation. Iraqi Islamic banks must provide long-term financing to the various economic sectors, to include the productive sectors that It works to increase production and reduce unemployment, the need for Islamic banks to distinguish between customers on the basis of grant financing and bias to productive financing, the need for banks to direct to small and medium enterprises, improve employment opportunities and contribute to reducing unemployment, the need to develop financial engineering and Creating modern financial means that are in line with Islamic Sharia regulations and contribute to a positive impact on macroeconomic variables. Continuous search for successful investment projects by adopting modern methods in feasibility studies, evaluating projects to ward off risks, and contributing to programs, funds or investment portfolios. Or any means of investing and exploiting the surplus liquidity in Islamic banks, the need for the attention of Islamic banks By the decision of pricing banking services and products in view of their impact on the profitability of the bank and its ability to continue in the banking market.