Glossary

A’yaan
Plural of ayn. Goods or specific thing

A’mal
plural of amal (work) that is required in a partnership or based on which a partnership is formed

Abd
slave; servant; abd madhun is a slave who has been authorized by his master to handle business on his behalf

Abddan
sharikat al-abddan

Adhaab / azab
Punishment, especially the punishment for failing to obey Allah Taala. see the Holy Quran

Adl / adil
Justice and equity. A fundamental value governing all social behaviour and forming the basis of all socialdealings and legal framework

Afdal
The best

AH
After Hijra. Hijra means emigration. The Islamic calendar startsfrom the day the Holy Prophet Muhammad (S.A.W.), emigrated from Mekkah to Madinah, in 622 A.D.

Ahadeeth also spelled Ahadith
Sayings and traditions of the Holy Prophet Muhammad (S.A.W.). Singular: Hadith.

Ahd
covenant; here it is used in the context of dhimmah (personal­ity), which is considered by the jurists a covenant with the Creator.

Ahkam
Plural of hukm (rule); the ahkam of a contract (legal ef­fects) as distinguished from its huquq (rights of performance of the contract) the Hanna’s make a distinction between the two.

Ahl ar-ray
Means people of opinion. It is refers to people that are consulted on Islamic matters. These people are highly learned in Islam.

Ahliyah
Legal capacity

Ahliyat al-add
Legal capacity for execution

Ahliyat al-wujub
Legal capacity for the acquisition of rights and obligations.

Ahlul Kitab Wa Sunnah
Literally means “the People of the Book (the Holy Quran) and the sayings and traditions, i.e. the Sunnah of Prophet Muhammad (S.A.W.)”.

Ajal
period; duration for which delivery is delayed.

Ajanib
plural of ajnabi (stranger); those who are not co-owners in a property.

Ajnabi
stranger; see ajanib.

Ajr al-mithl / Ajrul Mithl
reasonable wages; wages to which a person would be entitled under normal circumstances or customary in the community.

Al Fard al Kifayah
Socially obligatory duties. Literally, a collective duty of Muslims, the discharge of which by some of them absolves the rest of its performance, such as funeral prayers. Technically it covers such functions which the community fails to or cannot perform and hence are taken over by the state, such as the provision of utilities, building of roads, bridges and canals etc.

Al Hisba
System of accountability in an Islamic state in order to check unlawful practices.

Al-Aamilu-Alaz-Zakah
Zakah collector.

Alaihis Salaam / A.S.
May Allahs peace be upon him. A phrase which is usually read after the name of a prophet other than Prophet Muhammad (S.A.W.) is mentioned.

Alim
An Islamic religious scholar. Plural: Ulamaa.

Al-khardj bi al-damdn
a principle based upon a tradition; it is perhaps, the most influential principle in Islamic law, applies to contracts, damages, and even crimes.

Allah
The Name of the Creator of the Universe and all that it contains according to Islam. Derives from the word “Ilah” which means “the One deserving all worship”, the One to Whom all hearts submit in love, fear, reverence, desire, trust and sincerity, and to Whom all limbs submit in all forms of worship such as prayers, supplications, sacrifices, invocations, etc.

Al-Mofaviza
General Partnership (one of the types of partnership under Musharakah)

Al-sharikah dhat al-mas uliyah al-mahdudah
the name for a private limited company in Egyptian law

Al-wadia / Al-wadiah
This refers to deposits in trust, in which a person may hold property in trust for another, sometimes by implication of a contract.

Al-wakala al mutlaqa
Resale of goods with a discount on the original stated cost. Absolute power of attorney.

Al-Qard al-Hassan
Loans fixed for a definite period of time without interest or profit sharing.

Amal
work; conduct.

Amana / Amanah
Lit: reliability, trustworthiness, loyalty, honesty; Technically, an important value of Islamic society in mutual dealings; anything, which is in posses­sion of a person who is not the owner of it for safekeeping. In case of unintended loss to the thing, he is not obliged to pay compensation.

Ameen / Amin
Custodian or guardian; trustee.

Amir
Amir is used in Islam to mean leader or commander.

Amwal
Wealth; in business context wealth that is contributed as capital in a partnership; Plural: mal.

Aqd ghayr Azim
a contract that is terminable at the will of the parties, like partnership.

Aqd Sahih
A legal contract.

Aqd
agreement, contract.

Aqeeda
Literally means belief. In Islamic terminology, it means articles of faith

Aqilah
People who have ethnical relationship or rela­tionship of cooperation and help with an unin­tentional killer. They are legally obliged to bear blood money along with the killer.

Aql
reason; fourth interest secured by the shariah and recognized as a purpose of the law; the existence of aql is an essential condition for ahliyat al-add.

Ard / Ardh
land; property that includes goods, slaves and even real estate; according to most jurists land is not eligible for enti­tlement to profit as compared to other things that are: wealth, labor, credit-worthiness qiyas (analogy); a principle of law; principal amount in a debt; see A’s al-mal.

Athmaan mutlaqah
absolute currencies; the term is usually applied to dinars and dirhams.

Awkaf/ Awqaf
A religious foundation set up for the benefit of the poor;  property voluntarily transferred to a charity or trust so that it is use for public benefits.

Ayah
A verse of the Holy Quran. Literally means “a sign”. Plural: Ayaat.

Ayn
The corpus or substance of a thing. A thing present as distin­guished from one that is absents at the time of the contract. In Hanafi terminology, a thing is to be determined through weight or measure during a transaction of sale.

Badal
substitute; substitute compensation.

Bai al Dayn bi addayn
the exchange of a debt for a debt (prohibited based on a tradition and unanimously by the jurists based on ijma).

Bai al-salam
This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be effected unless the goods are in existence at the time of the bargain. But this type of sale forms an exception to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this type of sale are mainly tangible things but exclude gold or silver as these are regarded as monetary values. Barring these, bai salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic banks. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market. This kind of sale (Salam) also used nowadays as a mode of fianancing that is also called ‘Parallel Salam’.

Bai Bithaman Ajil (Al) / Al-Bay-Bithaman Ajil (BBA) financing
In modern Islamic banking, the term refers to a buying and selling transaction between the bank (or financial institution) and the customer, whereby the former buys a property  (or an asset, e.g. a house) at the prevailing market price and sells it to the customer at a mark-up price where payments are made by installments over a period of time agreed upon by both parties. The profit earned by the bank is legitimate from the Shariah point of view since the transaction is based on sales contract rather than a loan contract. Any predetermined profit arising from the loan is prohibited in Islam as it amounts to Riba.

Bai Muajjal / Bay Muajjal
Sale based on deferred payment, either in a lump sum or instalments. 1.A sale in which the parties agree that the payment of price shall be deferred is called a Bai Muajjal. 2.Bai Muajjal is valid if the date of payment is fixed in an unambiguous manner. 3.The date of payment can be fixed either with reference to a particular date, or by specifying a period, like three months, but it cannot be fixed with reference to a future event where the exact date is unknown or uncertain. If the time of payment is unknown or uncertain, the sale is void. 4.If a particular period is fixed for payment, like one month, it will be deemed to commence from the time of delivery, unless the parties have agreed otherwise. 5.The deferred price may be more than the cash price, but it must be fixed at the time of sale. 6.Once the price is fixed, it cannot be decreased if it was paid earlier, nor can it be increased in the case of default. 7.In order to ensure the buyer pays the installments promptly, the buyer may be asked to promise that in the case of default, he will donate some specified amount for a charitable purpose. In such cases, the seller may receive such an amount from the buyer, not as part of his income, but to use it for charitable purposes on behalf of the buyer. 8.If the commodity is sold on installment, the seller may put a condition on the buyer that if he fails to pay any installment on its due date, the remaining installments will become due immediately. 9.In order to secure the payment, the seller may ask the buyer to furnish a security whether in the form of a mortgage, a lien or a charge on any of his existing assets. 10.The buyer can also be asked to sign a promissory note or a Bill of Exchange, but the note or the bill cannot be sold to a third party at a price different from its face value.

Bai / Bay’
Sale; Commonly used as a prefix in referring to different types of sales: Muajjal, Murabahah, Tawliyah and Wadiah; comprehensive term that applies to sale as well as many other transactions that are not strictly referred to as sales in positive law; bilateral contract; exchange.

Baligh
mature person; person who has attained puberty, the outward sign of majority and discretion, in the absence of which jurists determines different ages for the presumption of puberty.

Batil
Nullity; void, void ab intio.

Baytul Mal
The treasury of an Islamic state.

Buda’ah
goods given to another for trading without giving wages or sharing profits (like a shopkeeper leaving his shop with another shopkeeper during his absence).

Bulugh
the attainment of puberty; see baligh.

Butlan
see batil.

D.C. A/C
Demand Credit Account.

Dain/ Dayn
Loan, due, receivable, debt.

Daman al- amal / Dhaman al-amal
liability underlying a partnership formed on the ba­sis of labor, where the partner is liable for performing the contract or completing the work accepted by either partner.

Daman al-mal
liability for the debts of the partnership; the usual form of liability underlying all partnerships, especially one formed based on wealth.

Daman al-talaf
liability for damaging or destroying property ac­cepted by the partnership for value-added work.

Daman al-thaman / Dhaman al-thaman
liability underlying a partnership formed on the basis of credit-worthiness where each partner is liable, jointly and severally, for paying the prince of goods bought on credit.

Diminishing Musharakah
Another form of Musharakah (a financing mode), developed in recent years. According to this concept, a financier and his client participate either in the joint ownership of a property or equipment, or in a joint commercial enterprise. The share of the financier is further divided into a number of units and it is understood that the client will purchase the units of the share of the financier one by one periodically, thus increasing his own share until all the units of the financier are purchased by him so as to make him the sole owner of the property, or the commercial enterprise, as the case may be.

Fadhal
Bounties of God, excess; used for Riba, which is excess in the exchange of two counter-values, whether determined through weight or measure or realized through delay in the delivery of one of the counter-values.

Fadl (Riba)
A type of interest. Taking something of superior quality in exchange for the same kind of thing of poorer quality. Allah Subhana wa Taala has strictly prohibited any kind of Riba and has warned of severe punishment for those who have any association with it. See the Holy Qur an, Surah Al-Baqara    (2): 275-280

Fai
Spoils of war that Muslims acquire from the ene­my without actual fighting.

Faidah
Benefit. In investment context it means return on investment.

Falas
Bankcrupt

Faqeeh / Faqih
Jurist; an Islamic scholar who can give an authoritative legal opinion or judgement.

Faqir
A poor person

Fard Ain
An action, which is obligatory on every Muslim.

Fard Kifayah
Religious obligation for the fulfillment of which whole society is responsible. However, if it is fulfilled by some member(s) of the society, others become free of this responsibility.

Fard
Obligatory. An act which is obligatory on Muslims.

Fasid ijarah
the hukm (rule) for a vitiated mudarabah, muzaraah or musaqah.

Fasid
vitiated; irregular; unenforceable; used in the sense of voidable in the positive law, but a contract is voidable at the option of the parties, while the fasid contract can become valid only if the offending condition is removed.

Faskh
rescission.

Fatwa / Fatwah
A religioius decree; a legal verdict given on a religious basis. The sources on which a fatwa is based are the Holy Quran, Sahih Bukhari and Muslim, and all other authenticated Ahadeeth. Plural: Fatawa.

Fay
Spoils of war that Muslims acquire from the ene­my without actual fighting.

Fidyah
Compensation for missing or wrongly practising necessary acts of worship. Fidyah usually takes the form of donating money or foodstuff, or sacrificing an animal.

Fiqh
Muslim jurisprudence; it covers all aspects of life, religious, political, social or economic. In addition to religious observances (prayer, fasting, zakat and pilgrimage) it covers family law, inheritance, social obligations, commerce, criminal law, constitutional law and international relations, including war. The whole corpus of fiqh is based primarily on the Quran and the Sunnah and secondarily on ijma and ijtihad.

Fulus
plural of fals (copper coin).

Fuqaha
(singular, faqih}: Jurists who give opinion on various issues in the light of the Quran and the Sunnah and who have thereby led to the development of Fiqh.

Ghanima
Spoils of war acquired from enemy after fighting during a holy war (Jihad).

Gharar
Uncertainty, hazard, chance or risk, ambiguity and uncertainty in transactions. Technically, the sale of something which is not present at hand; or the sale of something where the consequences or outcome is not known. It can also be a sale involving risk or hazard in which one does not know whether it will come to be or not, such as fish in water or a bird in the air; or an event where assurance or non-assurance is subject to chance and  thus not known to parties of a transaction. Can also mean uncertainty or a hazard that is likely to lead to a dispute in a contract.

Gharim
A person in debt; debtor unable to pay the debt from his wealth.

Ghasb
usurpation; abduction.

Hadith
(plural, ahddith): A report on the saying, deed or tacit approval of the Prophet, peace be on him.

Hadith-Qudsi
A saying of Allah Taala narrated by Prophet Muhammad (S.A.W.), that is not a part of the Holy Quran.

Hajar Al-aswad (Al)
The Black Stone, a stone which is said to have fallen from heaven, set into one corner of the Kaabah in Mekkah by Prophet Ibrahim (Abraham) (A.S.), which pilgrims, in imitation of Prophet Muhammad, (S.A.W.), kiss while performing  the Hajj or Umrah.

Hajar
interdiction, usually for safah (prodigality).

Hajj
Hajj means pilgrimage to Mecca and other holy places. Hajj, the fifth pillar of Islam, is a duty on every Muslim who is financially and physically able to carry it out, at least once in his lifetime. There is a specific period for Hajj, namely one week from the 8th day of the Islamic month of Dhul Hijjah to the 13th day of that month in the Islamic lunar calendar.

Hajj at-Tamattu (interrupted)
Umrah followed by Hajj, but taking off the Ihram in between these two stages.

Hajj al-Qiran (combined)
Umrah then Hajj without taking off   the Ihram.

Hajj al-Ifrad (single)
Hajj without Umrah.

Halal / Halaal
Things/acts lawful in Islamic law; Permissible. The concept of halal has spiritual overtones. In Islam there are activities, professions, contracts and transactions which are explicitly prohibited (haram) by the Quran or the Sunnah. Barring them, all other activities, professions, contracts, and transactions etc. are halal. This is one of the distinctive features of Islamic economics vis-a-vis Western economics where no such concept exists. In Western economics, all activities are judged on the touchstone of economic utility. In Islamic economics, other factors, mostly spiritual and moral are also involved. An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shariah.

Hamil
surety; the term is used by Hanbali jurists for kafil.

Hanafi / Hanfi
Islamic school of law founded by Imam Abu Hanifa. Followers of this school are known as the Hanafis.

Hanifite laws
Islamic school of law founded by Imam Abu Hanifa. Followers of this school are known as Hanafis.

Haq
Legal right.

Haram
An act or product which is unlawful or prohibited in Islam.

Harikat amal
partnership in which participation by the partners is based on labor or skill, but the partnership has to be of the type inan or mufdwadah.

Hawala
Endorsement; assignment; avail; Lit: bill of exchange, promissory note, cheque or draft. Technically, a debtor passes on the responsibility of payment of his debt to a third party who owes the former a debt. Thus the responsibility of payment is ultimately shifted to a third party. Hawala is a mechanism for settling international accounts, by book transfers. This obviates, to a large extent, the necessity of physical transfer of cash. The term was also used historically in public finance during the Abbaside period to refer to cases where the state treasury could not meet the claims presented to it and it directed the claimants to occupy a certain region for a specified period of time and procure their claims themselves by taxing the people. This method was also known as “Tasabbub”. The taxes collected and transmitted to the central treasury were known as “Mahmul”, while those assigned to the claimants were known as “Musabbub”.

Heelah
legal device.

Hibah
gift.

Hijri
Name of the Islamic lunar calendar. It took its name from the   early Muslims who migrated from Mekkah to Madinah, and  commences from the date of the Prophet Muhammads (S.A.W.) Hijra, which he made with Abu Bakr as-Siddiq (A.S.), in 622AC.   Often abbreviated to A.H. (After Hijra). The months of the Islamic  calendar are:1.Muharram. 2.Safar. 3.Rabii al-Awal. 4.Rabii al-Akhira. 5.Jumada al-Awal. 6.Jumada al-Akhira. 7.Rajab. 8.Shaban. 9.Ramadan. 10.Shawal. 11.Dhul Qida. 12.Dhul Hijjah

Hima
Keeping people away from a land which was earlier treated as usable by all so as to restrict all outward benefits such as herbage, water and hunting to state use.

Hiyal
plural of heelah (legal device).

Hizim
binding; binding contract.

Hudud
The boundary between what is Halal (lawful) and what is  Haram (unlawful), set by Allah. Whoever transgresses these limits may be punished or forgiven by Allah.

Hujjah
legal proof or authority.

Hujjaj
Pilgrims. Persons who have been on the pilgrimage to  Mekkah during the Hajj season in the month of Dhul Hijjah.  Singular: Haji = a male pilgrim, Hajah = a female pilgrim.

Hukm / Hukum
Verdict; rule; command; prescription; the hukm of a contract is a term for the legal effects of the contract.

Hukman
Constructively; legally, though not actually.

Huquq
Rights; lawful cliams; Plural of haq.

I’arah
lending utensils and non-fungibles.

Ibahah
permissibility.

IFB
Interest Free Banks

Ifrad (Hajj)
“Single Hajj”. Performing Hajj without performing  the Umrah.

Ihram
The state in which one is prohibited from doing certain things which are lawful at other times. Umrah and Hajj are performed in such a state.

Ihya al-Mawat
Reviving of unowned wasteland. One who re­vives such land becomes its owner.

Ihya’ al-ardh
reviving barren lands.

Ijara/ijarah
Lit: letting on lease. Technically, sale of a definite usufruct in exchange for a definite reward. Commonly used for wages, it also refers to a contract of land lease at a fixed rent payable in cash. It is contrary to “Muzarah” when rent is fixed as a certain percentage of the produce of land. It also refers to a mode of financing adopted by Islamic banks. It is an arrangement under which an Islamic bank leases equipment, a building or other facility to a client against an agreed rental. The rent is so fixed that the bank gets back its original investment plus a profit on it.

Ijarah wa iqtina
Contract of renting, hiring or leasing. This term refers to a mode of financing adopted by Islamic banks. It is a   contract under which the Islamic bank finances equipment, a building or other facility for the client against an agreed rental   together with an undertaking from the client to purchase the  equipment or the facility. The rental as well as the purchase price  is fixed in such a manner that the bank gets back its principal sum  along with some profit, which is usually determined in advance.

Ijma
Consensus of opinion of Muslim jurists on a specific matter; consensus of the jurists on any issues of fiqh after the death of the Prophet, peace is on him. See also fiqh.

Ijma’ sukuti
consensus where some jurists give tacit approval to the rule pronounced by others.

Ijtehad / Ijtihad
Lit: effort, exertion, industry, diligence. Technically, endeavour of a jurist to derive or formulate a rule of law on the basis of evidence found in the sources; scholarly effort through which a jurist/scholar derives Islamic law on the basis of Quran and Sunnah.

Ikhtilat
mixing of shares so that they can no longer be separated.

Iktinaz
Hoarding wealth without fulfilling legal obliga­tions on it.

Imam
Leader of the congregational prayer; also used for the founders of different schools of Muslim jurisprudence or other eminent jurists and also for the prominent descendents of All ibn Abi Talib and distinguished Shiah theologians. In ahddith it has also been used to refer to the ruler.

Inan khass
the inan partnership that is formed for a particular project or for trading in a particular commodity or in which the agency granted to the partners is restricted.

Inan
rein of an animal; type of partnership; see sharikat al-inan.

Infaq
Free-of-cost lending of an animal for riding or loading.

Inqilab
conversion; revolution; conversion of mufawadah into inan.

Intifaq
Granting of concessions relating to real estate e.g. the right of passage and right to place a beam on the wall of the neighbor, etc.

Intiha’
end; termination; termination or dissolution of a partnership.

Iqalah
negotiated rescission.

Iqta
Granting of ownership or usufruct rights over state land by the state to individuals in recogni­tion of their services for the sake of Islam.

Irtihan
pledging; mortgaging.

Ishtirak
equivocally; participation; partnership.

Istidanah
Raising   or building up credit through credit purchases. It however does not  apply to the raising of cash loans.

Isnad
The chain of transmission of a tradition.

Isqat
The extinction of a right.

Istidanah
raising or building up credit through credit purchases; does not apply to the raising of cash loans; see istiqrad.

Istihqaq al-ribh
entitlement to profit; basis for entitlement to profit.

Istihsan
principle according to which the law is based upon a general principle of the law in preference to a strict analogy pertaining to the issue, the principle is used by the Hanafis as well as the Malicious.

Istiqrad
the raising of cash loans for business purposes, declared batil by al-Sarakhsi as it is against the principle of prohibition of Riba.

Istisna’a / Istisna
This is a kind of Sale where a commodity is transacted before it comes into existance. It means: To order a manufacturer to manufacture a specific commodity for the purchaser. If the manufacturer under takes to manufacture the goods for him with material from the manufacturer, the transaction of Istisna’a comes into existence. But it is necessary for the validity of istisna’that the price is fixed with the consent of the parties and that necessary specification of the commodity (intended to be manufactured) is fully settled between them. This kind of Sale also is used as a mode of financing which also called “Parallel Istisna’a”.

Iwad
Compensation or counter-value.

Ja’iz
permissible; permissible contract.

Jahalah
uncertainty; uncertainty in a contract that may lead to a later dispute; see gharar.

Jahiliyyah
The period in Arabia before the advent of Muhammad, peace be on him.

Jihad
Holy war; struggle in the way of Allah.

Jizya
A tax imposed on non-Muslims who are under Muslim  country.

Joalah / Joaalah
The undertaking of one party (the Jael, bank or employer) to pay a specified amount of money to  another party in return for rendering a specified service in accordance with the terms of contract.

Jualal
Lit: stipulated price for performing any service. Technically applied in the model of Islamic banking by some bank charges and commission have been interpreted to be juala by the jurists and thus considered lawful.

Kaabah
The cube-shaped stone building whose foundations were  built by angels and completed by Prophet Ibrahim (Abraham) and  his son, the Prophet Ismael (A.S), in Mekkah. It was rebuilt with the help of Prophet Muhammad (S.A.W.). It is the focal point   towards which all Muslims face when praying.

Kafalah bi al-thaman
Surety for paying the price or sum if  unpaid by the person originally liable.

Kafalah binnafs
bail; surety for producing the body of the person wanted.

Kafil
surety; person providing the surety; guarantor.

Kala
Grass, herbage and plants which grow on their own.

Khalt
mixing of shares; see ikhtilat.

Khamr
wine from grape juice.

Kharaj
Tax on land of non-Muslim subjects of an Islamic state; revenue from land.

Kharij
produce.

Khiyarat
plural of khiyar (option).

Khums
A 20 per cent levy. It is applicable to spoils of war, mines and wealth burned in land that has no owner.

Kihayr Izin
contract terminable at the will of either party. contract terminable at the will of either party.

Kird’
rent for land, permitted by Malik ibn Anas.

Ma’un
Free-of-cost lending of domestic utensils, pro­fessional instruments and other things of ordi­nary needs.

Mabrur
A Hajj that is accepted by Allah because of its perfection  in both inward intention and outward observation of the traditions of  Prophet Muhammad (S.A.W.)

Madinah
A city in Saudia Arabia, often called Madinaal-Munawarra – the Illuminated, or the EnlightenedCity – where the   revelation of the Quran was completed, and in which Prophet

Mahjoor
A person who is prevented or restrained to do business by law or Shariah.

Mahram
A man whom a woman can never marry because her close relation with him (e.g. father, brother, uncle, son, etc.). Her husband is also her Mahram.

Maiser
Gambling. Literally means getting something too easily.

Mufawadah
A basic contract of partnership based on wakalah and kafalah. It requires full commitment from the partners. In order to achieve this purpose, the partners must try to maintain equality in the capital, labor, liability and the legal capacity and also declare each partner to be a surety for the other.

Modaraba
An agreement between two or more persons whereby one or more of them provide finance, while the other(s) provide enterpreneurship and management to carry on any business venture whether trade, industry or service with the objective of earning profits. The profit is shared in an agreed proportion. The loss is borne by the financiers only in proportion to their share in the total capital.

Murabaha
Sale at a special profit margin. The seller purchases the goods desired by the buyer and sells them at an agreed mark-up price. The payment being settled within an agreed time frame, either in instalments or lump sum. The seller undertakes all management needed for the purchase and also bears the risk for the goods until they have been delivered to the buyer.

Musaddiq: The person discharging voluntary charity.

Musharaka
A temporary equity participation agreement between a bank and a client for effecting a certain operation within an agreed period of time. Both parties contribute to the capital of the operation in varying degree and agree to divide the net profits or losses in proportions agreed upon in advance.

Najis
Impure.

Nasi’atan
by way of nasiah, that is, with a delay in the delivery of one or both counter-values in a contract of exchange {bay).

Nass
text; word or text with a single meaning; text from the work of a jurist.

Nisa (Riba al)
A type of interest. Taking interest on loaned money. An act which Haram. See the Holy Quran, Al-Baqara (2):275-280 and Aaliimran(3):13O.

Nisab
A threshold of wealth of which any excess is subject to  Zakah.

Nizam
institution; term used in Saudi law for the corporation, in place of the usual term sharikah, in Arab law.

Nubzah
beverage made from dates; mead of dates.

P.B.U.H.
These letters are abbreviations for the phrase Peace Be Upon Him which is the translation of the Arabic expression Alaihis   Salam or A.S., which is an expression that is said when the name of a prophet is mentioned. This expression is widely used by  English speaking Muslims. It is to be noticed here that this expression does not give the full meaning of “Salla Allahu Alaihi  Wa Sallam”. Therefore it is recommended that people do not use   (p.b.u.h.) after the name of prophet Muhammad (S.A.W.); they  should use “Salla Allahu Alaihi Wa Sallam” instead, or they may use the abbreviated form of (S.A.W.) in writing.

Parallel Istisna’a
See Istisna’a.

Parallel Salam
See Bai Salam.

Pari Passu
Simultaneously and equally.

Qard al Hasan
A loan extended without interest; gracious loan without interest in which the benefit to be derived is gifted by the owner to the beneficiary without this charitable act, the use of the money for a period would be consid­ered an unjustified excess transferred to the beneficiary also called Ribaal-nasiah.

Qard
A loan given for a good cause in the name of Allah, in hopes  of repayment or reward in the Hereafter; debt.

Qarn al-Manazil
The Miqat of the pilgrims travelling through Najd, in Arabia (from the east).

Qiraad
another name given by the Malilkis to the contract of mudarabah, from the word qard.

Qiran (Hajj Al)
Combined Hajj. Performing the Umrah, followed  by the Hajj, without taking off the Ihram.

Qiyas
Lit: Analogy; syllogism. Technically: Analogy through which Islamic law is derived from a textual injunction for a given non-textual matter.

Quadaa
Paying in a debt.

Qubul
acceptance.

Quirat
gold, coin used during the time of Holy Prophet PBUH

Quran
The Holy book containing the actual words of Allah revealed to the Prophet Muhammad (peace be upon him). This Holy Book of the Muslims consisting of the revelations made by God to the Prophet Muhammad, peace be on him, during his Prophet hood of about 23 years. The Quran lays down the fundamentals of the Islamic faith, including beliefs and all aspects of the Muslim way of life. These are supplemented or further elaborated by the Sunnah. The Quran consists of 30 parts (ajza), 114 chapters (surahs}, and 6,666 verses (ayahs). There are a number of translations of the Quran by both Muslims and non-Muslims. The translations by Abdullah Yusuf Ali and Muhammad Marmaduke Pickthall, both Muslims, and by A. J. Arberry are the most popular. In all references to the Quran in the text (e.g., 30: 41), the first number refers to the surah and the second to the ayah or verse. Many commentries (Tafseer) of the Holy Quran had been written in many languages. Ahkamul Quran, Maariful Quran, Jalalain etc are among the most famous ones.

Ras al-mal
capital; principal amount invested; capital invested in Mudarabah Musharkah.

Rabb al-ard
owner of land, owner of the land in Musaqah/Musaqat and Muzara’ah contracts.

Rabb al-mal
investor; owner of capital; a person who invests in Mudarabah / Musharkah. See also sahib al-mal.

Radd bi-al-ayb
return of goods after a sale due to defects in the goods.

Raghabah
Property, which belongs to all people. Neither state nor individuals can prevent others from its lawful use.

Rahn
Pledge or mortgage.

Riba
Riba literally means increase, addition, expansion or growth. It is, however, not every increase, or growth, which has been prohibited by Islam. In the Shariah, Riba technically refers to the premium that must be paid without any consideration. According to the jurists of Islam this definition covers the two types of Riba, namely Riba Al Fadhl and Riba Al Naseah.
Example 1of Riba: If A sells 100 $ to B with 110 $. The premium of 10 $ is without any consideration or compensation. Therefore this amount of 10 $ will be Riba.
Example 2 of Riba: If A lends 100 $ to B (a borrower) with a condition that B shall return him 110$ after one month. In this case the premium paid that must be paid by the borrower to the lender along with the price is Riba. Because the premium of 10 $ is without any consideration.

Riba aI-Fadl
An extension of Riba to trade, because while trade is allowed, not everything is permitted in trade. The prohibition of Ribaal-fadl closes all back doors to Riba through trade. unlawful excess in the exchange of two counter-values where the excess is measurable through weight or measure. According to some Ahadith (Sayings of the Holy Prophet) if six things i.e. gold, silver, wheat, barley, dates and salt are exchanged against themselves, they should be spot and be equal and been specified. If these conditions are not found, this transaction will become Riba Al Fadhl.

Riba al Nasiah
Literally means increase or addition of debt and it refers to the premium that must be paid by the borrower to the lender along with the principal amount as a condition for the loan or an extension in its maturity.” It is thus equivalent to interest. the addition of the premium which is paid to the lender in return for his waiting as a condition for the loan and is technically the same as interest.

Ribah
Is from rayb which literally means “doubt or suspicion and refers to the income which has the semblance of Riba or which raises doubts in the mind about its rightfulness. It covers all income derived from injustice to or exploitation of, others.

Rikaz
Ancient wealth found hurried in land whose

Rukn
element; part of an act without which the act is not complete or valid; essential ingredient or element of a contract; singular of Arkan.

S.A.W.
These letters are abbreviations for the words “Salla Allahu    Alaihi Wa Sallam”, which means : may the blessing and the peace   of Allah be upon him. When the name of Prophet Muhammad is mentioned, a Muslim is to respect him and invoke this statement of  peace upon him.

Sadaqa / Sadaqah
Anything given away in charity in the name of Allah.

Sadaqah al-Fitr
A compulsory levy after the month of fasting (Ramadan). Every Nisab-holder has to give to the poor one saa (21/2 kg.) of commonly used grain for himself and each one of his depend­ents.

Safa and Marwa
Two small hills in Makkah, in Al-Haram  as-Shareef (The Grand Masjid) to the east. It is an essential part of  an Umrah and the Hajj to walk seven times between the two places, quickening ones step briefly between the two hills. This is  called Sai. See Holy Quran, Al-Baqara (2).

Sahib al-Mal
(plural, Ashab al-mal): The financier; in the mudarabah form of partnership agreement, the sahib al-mal (also, rabb al-mal) provides the finance while the mudarib provides the entrepreneur ship and management. There can be many ashab al-mal and midribs in a given muddrabah agreement. See also muddrabah, mudarib.

Sai
The act of going back and forth seven times between Safa  and Marwa which is done during the Hajj or the Umra.

Sak
Pl. Sukook, Check, certificate of debt, certificates of investment.

Salam
See Bai al salam.

Samsarah
Brokrage, agency, business of commisson. See Simsar.

Sarf
contract for the exchange of gold, silver, and currencies whether the currency or commodity exchanged is the same from both sides or is different, that is, whether dinars are exchanged with dinars or dinars are exchanged with dirhams.

Shakhsiyah iitbariyah
juristic person; artificial personality; corpo­rate personality.

Shari’ah
Islamic Jurisprudence. Divine law consisting of Quran and Sunnah and on justification.

Sharik
partner.

Sharikah al-wujuh
partnership based on credit-worthiness of the partners in which the ratio of profit and loss is based on the li­ability borne, but the partnership has to be of the type inan or mufawadah.

Sharikah ammah
general partnership; a partnership in which each partner is a general attorney for the other partners; a partnership that permits trading in all types of goods.

Sharikah khassah
special partnership; partnership for a single ven­ture or for trading in a particular item; partnership in which each partner is a special attorney of the other partners.

Sharikah Musahamah
in Egyptian law it is the name for a corpora­tion or for a public limited company.

Sharikah
partnership; in Egyptian law the term is used for joint-stock companies and corporations as well, but is qualified with an adjective to indicate its nature: thus, sharikah musahamah for a public limited company or a corporation whose capital has been subscribed to by the general public.

Sharikat al- inan
a basic contract of partnership based on agency in which participation may either be on the basis of wealth or labor or credit-worthiness, and in which equality of contribution or legal capacity is not necessary.

Sharikat al-abdan
another name for sharikat al-amal.

Sharikat al-amwal
a partnership in which participation is based on the contribution of wealth by all partners, but the partnership has to be of the type indn or mufdwadah.

Sharikat al-ibahah
common rights of individuals to gather possesses and own free commodities.

Sharikat al-jabr
mandatory co-ownership created by an act of law, like inheritance.

Sharikat al-mafalis
a partnership between persons whose assets have been reduced to copper coins and who have to buy on the basis of credit-worthiness; see sharikat al-wujuh.

Sharikat al-mal
see sharikat al-amwal.

Sharikat al-milk
co-ownership. Sharikat al-mudarabah: see mudarabah.

Sharikat al-taqabbul
partnership for the acceptance of work, which is the same thing as a partnership based on labor or skill.

Sharikat al-zimam
a term used by the Malikis to indicate a situa­tion where two or more persons are buying goods on credit it is different from the Hanafi sharikat al-wujuh insofar as it requires the physical presence of all the partners at the time of purchase.

Shira’ bi al-nasiah
a credit-purchase.

Shirb
The right of irrigation.

Shirikat al- aqd
a partnership created through contract as opposed to co-ownership that may be the result of a joint purchase or agree­ment or it may result from inheritance or from some other legal situation.

Shirkah
Another form of the term sharikah. Partnership between two or more persons whereby, unlike mudarabah, all of them have a share in finance as well as entrepreneurship and management, though not necessarily equally. See Appendix II for details.

Shirkat al-amal
see sharikat at-amal.

Shirkat
See Musharikah

Shuf’ah
preemption.

Shuffa
The right of preemption for a person who is his neighbor or who is his partner in water.

Shukuk / Sukook / Sukuk
Check, certificate of debt, certificates of investment; plural of Shak

Shurut
conditions; the name given to the art of conveyancing in Islamic law.

Sighah
form of the contract.

Simsar
Broker, agent like travel agent or estate agent. See Samsarah.

Sunnah
Any saying of Prophet Muhammad (peace be upon him) or his act or any act of his com­panion endorsed by him. After the Quran, the Sunnah is the most important source of the Islamic faith and refers essentially to the Prophets example as indicated by his practise of the faith. The only way to know the Sunnah is through the collection of Ahddith .

Surah
A chapter of the Quran. There are 114 surahs of varying lengths in the Quran. In all references to the Quran in the text (e.g. 30: 41), the first number refers to the surah and the second to the ay ah or verse.

T.C.A/C
Time Credit Account

Ta’yin
ascertainment of the goods sold through weight or measure.

Tabarru
act of charity.

Tafwid
delegation.

Tahjir
Earmarking a piece of wasteland that has no owner by an individual in order to rehabilitate it. (This establishes the right of ownership on such land).

Takaful
Islamic Insurance. A scheme of mutual support that  provides insurance to individuals against hazards of falling into unexpected and dire need.

Takhrij
derivation; a methodology practised by the faqih, and that is based upon reasoning from principles.

Takhsis
restriction; restriction of the meaning of a text.

Ulamaa
Plural of Alim. The people of knowledge from amongst    the Muslims who act on what they know and do what they say.

Ummah
Refers to the whole Muslim community, irrespective of colour, race, language or nationality, which carry no weight in Islam.

Umrah al-Qada
The fulfilled Umrah – the Umrah which the  Prophet performed in the seventh year after Hijrah which he intended to do in the sixth year but which the Quraysh unbelievers had not allowed him to complete.

Umrah
A pilgrimage to Mekkah, but not during the Hajj period. It   is also called “the Lesser Pilgrimage”.

Urbun
earnest money.

Urf
usage; custom.

Urn al-shurut
conveyancing; drafting of legal documents.

Urudh
Pl. of ‘Ardh: property that includes goods, slaves and even real estate.

Ushr
Ten per cent (in some cases five per cent) of agricultural produce payable by a Muslim as a part of his religious obligation, like Zakat, mainly for the benefit of the poor and the needy.

Wadheeah
Sale at a loss.

Wadiah
contract of deposit; bailment.

Waijdb / Wajib
Compulsory, obligation as distinguished from wujub (duty).

Wakalah ammah
general agency.

Wakalah khassah
special agency.

Wakalah qasirah
restricted agency.

Wakalah
agency.

Wakil
agent.

Wali
guardian.

Waqf
Endowment. A charitable trust in the name of Allah, usually  in perpetuity, and usually for the purposes of establishing the Deen of Islam, teaching useful knowledge, feeding the poor or treating  the sick.

Wasiyah
Will (according to Islamic law a person cannot bequeath more than one third of his total inheri­tance nor can he bequeath in favour of his heirs).

Wilayah
guardianship.

Wilayat al-istidanah
authority granted by one partner to another to buy on credit beyond the limit of the capital of the partnership.

Zakah / Zakat
compulsories levy on every Muslim who has wealth greater than the amount of Nisab. The amount payable by a Muslim on his net worth as a part of his religious obligations, mainly for the benefit of the poor and the needy. See also ushr.

Zakah al-Fitr
A small obligatory head-tax imposed on every    Muslim who has the means for himself and his dependants. It is  paid once yearly at the end of Ramadan before Eid al-Fitr.

Zakah Al-Mal
The Muslims wealth tax: One must pay 2.5% of  ones yearly savings above a certain amount to the poor and needy  Muslims. The Zakah is compulsory on all Muslims who have saved(at least) the equivalent of 85g of 24 carat gold at the time when the   annual Zakah payment is due.

Zakatul Huboob
Zakah of grain/corn.

Zakatul Madan
Zakah of minerals.

Zakatur Rikaaz
Zakah of treasure/precious stones.

Zakatu-rid Tijaarah
Zakah of profits of merchandise.

Zar
seed; crop to be sown.

Zhulm
A comprehensive term used to refer to all forms of inequity, injustice, exploitation, oppression and wrongdoing whereby a person either deprives others of their rights or does not fulfil his obligations towards them.

Zimmah
equivalent of legal personality in positive law; receptacle for the capacity for acquisition; see ahd.