| |
|
|
|
|
| |
Adl |
|
Justice, fairness. |
| |
|
Ahadith |
|
(plural of Hadith) Sayings of the Prophet Muhammad (peace be upon him). |
| |
|
Ayah |
|
Verse of the Holy Quran |
| |
|
Bay |
|
Sale Often used as a prefix. Referring to different types of sale. |
| |
|
Bay al-dayn |
|
Sale of debt. Debt usually cannot be sold except for face value. |
| |
|
Bay al-salam |
|
A sale where payment is made in advance by the buyer, and delivery of goods is deferred by the seller. |
| |
|
Bay al-salaf |
|
Alternate term for Bay al-salam. |
| |
|
Bay al mu ajjal |
|
Credit sale. (Bay bi thaman also referred to as a credit sale). |
| |
|
Bay al-mudaf |
|
A sales contract in which delivery of both commodity and payment is deferred (Usually not permitted in Shariah). |
| |
|
Fard |
|
Obligatory duty. |
| |
|
Fatwa |
|
Religious verdict. |
| |
|
Fiqh |
|
Verdict within Islamic jurisprudence. Based on the Quran and the Sunnah. |
| |
|
Gharar |
|
Uncertainty. |
| |
|
Hadith |
|
Sayings and deeds of the prophet Muhammad (Peace be upon him). |
| |
|
Halal |
|
Activities permitted under the Shariah. |
| |
|
Haram |
|
Activities that are not permitted, such as the drinking of Alcohol, or the cutting down of trees for monetary gain, backbiting. |
| |
|
Hukm |
|
Shariah ruling. |
| |
|
Ijarah |
|
Leasing. Sale usufruct of an asset. |
| |
|
Ijma |
|
Consensus by the Islamic scholars. |
| |
|
Ijtihad |
|
Ruling by a jurist based from Quran and teachings of the Prophet Muhammad (Peace be upon him). According to the great Jurist Shafi generally you need to know 500 verses of the Quran referring to the aspect you intend to rule upon. |
| |
|
Istihsan |
|
Departure from one ruling to another ruling to bring about ease. |
| |
|
Istislah |
|
Judgement not supported by the Quran and Sunnah, driven by broader public interest. |
| |
|
Istisna |
|
Refers to a contract where the seller agrees to sell at and deliver at a certain price on a given date in the future. Unlike a Salam sale the payment can be made at an agreed future time. |
| |
|
Khayar al-shart |
|
Option to rescind a sales contract based on some conditions. |
| |
|
Mu amalat |
|
Relationships/contracts/transactions amongst human beings. |
| |
|
Mudarabah |
|
Contract between two parties. Profit is distributed amongst the parties in accordance to the ratio that has been agreed at the time of the contract. Financial loss is Bourne only by the financer. The entrepreneurs’ loss lies in not getting any reward for his or her services. |
| |
|
Murabahah |
|
Sale at a specified profit margin. The term is however now used to refer to sales agreements where the seller purchases goods desired by the buyer and sells them at an agreed marked-up price, the payment being settled within a agreed time frame. Either by instalments or by lump sum. Sellers bear the risks till delivery is taken. Also called bau-ul mu ajjal. |
| |
|
Musharakah |
|
Partnership. Similar to a Mudarabah, the difference being in the former both parties participate in the management and the provision of capital, and share in the profit and loss. Profits are distributed with the ratios initially set. But loss is distributed to each ones share in the capital. |
| |
|
Qarad Hasan |
|
Loan extended without Interest. |
| |
|
Quran |
|
Revelation from God to the prophet Muhammad (Peace be upon him) the basis of guidance to the Islamic faith. |
| |
|
Rabb al-mal |
|
Financier in a Mudarabah contract. |
| |
|
Riba |
|
Interest, Usury all interest bearing transactions’ are strictly forbidden to Muslims according to the Quran see Surah (2:275). The prophet Muhammad (peace be upon him) has voiced Riba as one of seven major sins. |
| |
|
Riba al-fadl |
|
Riba pertaining to trade contracts. |
| |
|
Riba al-Nasa |
|
Riba pertaining to loan contracts. |
| |
|
Surah |
|
Chapter in Quran. |
| |
|
Sunnah |
|
The second most important source in the Islamic faith. It refers to the actions and conduct of the prophet Muhammad (peace be upon him) The only way to the sunnah is through authenticated hadith, which consists of reports about the sayings, actions and endorsements of the prophet (peace be upon him). |
| |
|
Shariah |
|
Islamic Law. |
| |
|
Takaful |
|
Mutual Insurance. |
| |
|
Wakalah |
|
Contract of agency. In this contract, one person appoints someone else to perform a certain task on there behalf. Usually against a fixed fee. |
| |
|
Wadi ah |
|
A contract where valuables are left with someone else. The keeper is permitted to charge a fee even though historically the Islamic culture encourages providing the service free of charge. |
| |
|
Sukuk |
|
Islamic investment certificate. An asset backed security. |
| |
|
Zakah |
|
An obligatory amount payable by all Muslims mainly for the benefit of the poor and needy. |
