Tawarruq has been extensively used by Islamic financial institutions (IFIs) recently, mainly to address liquidity shortages and to structure risk management tools. The common term used in the market to denote tawarruq is “commodity murÉbaÍah” or sometimes “commodity musÉwamah”. The concept of tawarruq has gained wide acceptance among market players due to its flexibility, which allows IFIs to provide cash with predetermined fixed income, just as their conventional counterparts do.