Trade Services
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Glossary of Terms
Glossary
| ARABIC TERMS | ENGLISH TERMS |
|---|---|
| Al-bai` | Sale contract |
| Aqad | Contract |
| Shariah | Islamic law based on Al-Quran and Sunnah (teachings of the prophet) |
| Bai` dayn | Sale of debt |
| Bai` sarf | Sale of currency |
| Bai` bithaman ajil | Sale contract based on deferred payment at certain price |
| Gharamah | Fine/penalty |
| Gharar | Uncertainty |
| Haram | Anything prohibited by Shariah |
| Halal | Anything permitted by Shariah |
| 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 |
| Wakil | Agent |
| Muwakkil | Principal in Wakalah contract |
| Tahawwut | Hedging |
| Kafalah | Guarantee |
| Kafalah bi al-Ujr | Guarantee with fee |
| Kafil | Guarantor |
| Tanazul | Waiver of rights |
| 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 |
| Maisir | Gambling/speculation |
| Wa`d | Promise |
| Wakalah | Agency contract |
| Wakalah bi al-istithmar | Agency contract for investment |
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