Bay' al-'Inah

Bay' al-'Inah is an Islamic financing practice where a seller first sells an asset to a buyer at a certain price, and then immediately buys it back at a lower price, effectively creating a loan with a deferred payment. This transaction enables the seller to receive cash upfront while the buyer gains a future payment obligation, mimicking interest. However, many Islamic scholars consider it a form of interest (riba) because it circumvents the prohibition on usury by disguising a loan as a sale, thus making it controversial and often deemed non-compliant with Islamic financial principles.