BRIDGING THE THEORY-PRACTICE GAP: AN IN-DEPTH STUDY OF AL-MURABAHA IN THE UAE ISLAMIC BANKING SECTOR

Delving into the realm of Islamic banking and finance, this study places particular emphasis on Murabaha, a crucial financial instrument within the framework of Shariah-compliant banking. The research specifically seeks to investigate the theory-practice gap in the application of Murabaha in the United Arab Emirates (UAE).At the heart of this endeavour lies the objective of conducting a comprehensive analysis and evaluation of Islamic banking and financial systems, particularly Murabaha, in comparison to conventional models. The research aims to bridge the chasm between the theoretical understanding and practical implementation of Murabaha in the UAE's Islamic banking sector.As the market for Islamic finance, especially Murabaha, expands in the UAE, comprehending the theorypractice dynamics becomes increasingly critical. The study delves into the discrepancies between theoretical principles and actual practices in the application of Murabaha, providing insights into its intricate features, adherence to Islamic principles, and avenues for development.The investigation employs a meticulous examination of Murabaha's purchase orders (MPOs) at a local Islamic bank in the UAE. This involves a detailed analysis of the bank's procedures, ensuring alignment with Islamic principles, and presenting the findings in a collaborative, team-based presentation.The study aims to provide a holistic understanding of the practical implementation of Murabaha in the UAE's Islamic banking industry. It seeks to shed light on its usage, adherence to Sharia principles, and potential areas for improvement, thereby contributing to a broader comprehension of Islamic banking practices.Through the analysis of Murabaha in the Islamic banking sector of the UAE, the research aims to enhance communication and alignment between theory and practice. The ultimate objective is to facilitate a more nuanced understanding of Islamic banking in the UAE, promoting ethical financial practices aligned with Islamic principlesfor sustained economic stability and fairness.