Friday, May 10, 2013

Islamic Banking and Finance Glossary

Term Meaning
Amanah Trustee
Bai Ad-Dayn  Sale of Debt
Bai Bithaman Ajil  Deferred Payment Sale, over a period of time
Bai Inah  2-party Sale (for Cash)
Bai Salam  Trust Sale
Fatwa  Edict, opinion or judgement based on religious sources scholarly discussion
Gharar  Uncertainty, unmitigated risk
Hadith  Sayings of the Prophet as recorded
Halal  Permissable, Clean & Pure
Haram  Prohibited
Hibah  Gift
Hilah  Trick (contractum trinius)
Hiwalah  Transfer of debt
Ibadah  Worship
Ibra’  Rebate
Ijab  Offer (tenets of a contract)
Ijarah  Rent
Ijarah Mausufah Fi Zimmah  Forward Lease
Ijarah Muntahiah Bi Tamlik  Rental with intention to own
Ijarah Thumma Al Bai  Rent with eventual sale (Hire-purchase)
Inah Deferred payment sale and subsequently followed by cash sale by the earlier buyer.
Isnad Change of reporting(hadith)
Istijrar  Staggered sale (time-to-time sale)
Istina’a  Order
Ijtimak Social Walfare
Jualah  Service Charge
Jizyah Tax imposed on non-Muslim in a muslim’s state.
Kafalah  Guarantee
Kiraa’ waqtinaa’ Rent followed by sale
Maisir  Unearned income, unfair income (part of gambling)
Muamalat  Man-to-Man transaction
Mudharabah  Profit Sharing. Commonly for investments.
Mudharib  Entrepreneur, in a Mudharabah transaction 
Murabahah  Cost-plus sale (financing) 
Musawamah  Simple Sale
Musyarakah  Partnership, Joint-venture
Musyarakah Mutanaqisah  Diminishing partnership
Musaqat Agriculture Partnership
Mukharabah Leasing of land for agriculture.
Muzara’ah Leasing of land for agriculture.
Muqassah Set-off
Nasi’ah  Delay (used in relationship in delay of payment of money)
Qabul  Acceptance (tenets of a contract)
Qardh  Loan
Qardhul Hassan  Benevolent Loan 
Qimar  Gambling
Rab Ul Maal  Capital providers, Fund owner
Rahnu  Collateralised debt (pawn broking)
Riba’  Usury (interest) 
Sarf  Exchange of foreign currency
Shariah  Law (Islamic) literal definition – way, path
Shirkah  Partner
Sukuk  Certificates (Securitised Assets)
Sunnah  Actions of the Prophet as recorded
Siasah Public
Takaful  Mutual assistance
Tawarruq Murabahah  Tripartite Cost-plus Sale
Tawliyah Novation
Tabarru’ Donation
Ujrah  Compensation / Service Charge
‘Uruf Custom of practice.
Yad Amanah  With Trust (used with Wadiah)
Yad Dhamanah  With guarantee (used with Wadiah)
Waad  Promise
Wakalah Agency
Wakf Endowment