ARABIC TERMS |
ENGLISH TERMS
|
Al-bai` |
Sale contract
|
Al-ijarah thumma al-bai` |
Lease contract followed by ownership of asset through a sale contract
|
Al-muqasah |
Offsetting
|
Bai` dayn |
Sale of debt
|
Bai` sarf |
Sale of currency
|
Bai` bithaman ajil |
Sale contract based on deferred payment at certain price
|
Bai` salam |
Sale contract based on order of certain asset with certain specifications. Full payment is made in cash at the time of conclusion of the contract whereas the delivery of the asset is deferred to a specified time
|
Dayn mustaqir |
Debt which the liability to pay is established
|
Gharamah |
Fine/penalty
|
Gharar |
Uncertainty
|
Gharar yasir |
Minimal uncertainty
|
Halal |
Permissible
|
Hamish jiddiyyah |
Security deposit
|
Hawalah |
Debt Transfer
|
Hibah |
An act of transferring of ownership of an asset or usufruct without an exchange of counter value during the lifetime of the transferor
|
Ibra’ |
Rebate/waiver of partial or total claim against certain right or debt
|
Ijarah |
Lease or service contract that involves benefit/usufruct of certain asset or work for an agreed payment or commission within an agreed period
|
Ijarah muntahia bi al-tamlik |
Lease contract which ends with acquisition of ownership of the asset by the lessee
|
Istisna` |
Sale contract by way of order for certain product with certain specifications and certain mode of delivery and payment (either in cash or deferred)
|
Kafalah |
Guarantee
|
Kafalah bi al-Ujr |
Guarantee with fee
|
Kafil |
Guarantor
|
Manfa'ah |
Usufruct; the right to enjoy the use and advantages of another's property short of the destruction or waste of its substance
|
Maqasid Shariah |
Objectives of Shariah
|
Mudarabah |
Profit sharing contract
|
Muqasah |
Offsetting
|
Murabahah |
Sale contract with a disclosure of the asset cost price and profit margin to the buyer
|
Musawamah |
Sale contract without the disclosure of the asset cost price and profit margin to the buyer
|
Musyarakah |
Profit and loss sharing
|
Qabd |
Possession
|
Qard |
Loan contract
|
Rahn |
Pledge/charge
|
Riba |
Usury; the illegal action or practice of lending money at unreasonably high rates of interest
|
Sukuk |
Islamic securities/bonds
|
Ta`widh |
Compensation
|
Tabarru` |
Voluntary donation/contribution
|
Takaful |
A scheme which is based on the spirit of cooperation and helping each other by providing financial assistance to participants when needed and all participants mutually agree to give contribution for the said purpose
|
Tawarruq / Commodity Murabahah |
Purchasing an asset with deferred price, either on the basis of musawamah or murabahah, then selling it to a third-party to obtain cash
|
Ujrah |
Commission
|
Urbun |
Down payment/deposit
|
Urf |
Common practice which is acceptable by the community and does not contradict the Shariah rulings
|
Urf tijari |
Common business practice which is acceptable by the community and does not contradict the Shariah rulings
|
Wa`d |
Promise
|
Wakalah |
Agency contract
|
Wakalah bi al-istithmar |
Agency contract for investment
|