I

A B C D E F G H I J K L M N O P Q R S T U W Y Z

Word	Meanings
Ibahatul Asliyah	General permissibility, which means that all economic activities that are not prohibited by the original sources of Shar¯ı´ah, i.e. the Qur¯an and Sunnah, are valid/permissible. (See Ibaha)
Ibadah	(1) Worship.
	(2) Worship or Ritual act.
	(3) Human-to-God relationship
Ibaha	Lit. permissibility. Ibaha refers to the rule that every economic transaction is mubah (permissible) unless expressly and specifically forbidden by the Shariah.
Ibnu Sabil	Lit. ibnu sabil is an expression for musafir. Musafir are people who are travelling. Although an ibnu sabil has living means, the person can receive zakat in case of problems in accessing provisions during travelling.
Ibra	Rebate
Ihsan	Carrying out noble deeds without expecting any worldly rewards but doing it for the pleasure of Almighty God.The doing of good and showing it in both deed and action, a sense of social responsibility borne from religious convictions. Ihsan constitutes the highest form of worship (Ibadah); it is excellence in work and in social interactions. Lexically, meaning help, aid, and support.
Ihtikar	Hoarding: the prohibited practice of purchasing essential commodities, such as food and storing them in anticipation of increase in prices.
Ijab	Offer (in contract). Opp.Qabul.
Ijarah	(1) Leasing.
	(2) Leasing, where the bank or financier buys and leases equipment or other assets to the business owner for a fee. The duration of the lease as well as the fee are set in advance. The bank remains the owner of the assets. The benefit and cost of the each party are to be clearly spelled out in the contract so that any ambiguity (gharar) may be avoided.
	(3) Letting on lease. Sale of defined usufruct of any asset for a defined period in exchange of definite rent; only those assets can be leased the corpus of which is not consumed with use or the form/shape of which is not entirely changed with use. For example, cotton, yarn, fuel, milk, money can be sold/bought, but not leased against rentals. This is because the lessor has to bear the risk related to the ownership of the asset, and this is possible only if the leased asset remains intact and the lessor gets reward in the form of rental against taking risk.
	(4) 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 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 rental is so fixed that the bank gets back its original investment plus a profit on it.
	(5) A form of leasing contract in which there is a transfer of ownership of service (for use of an asset) for a specified period for an agreed upon lawful consideration. Instead of lending money on interest, Ijarah allows a financial institution to earn profits by charging rentals for the use of the asset. Often used by Islamic banks for financing. Under this scheme of financing an Islamic bank purchases an asset as per specification provided by the client. The period of lease and the lease rental fee are set in advance and may be determined by mutual agreement according to nature of the asset. During the period of the lease, the asset remains in ownership of the bank (as lessor), but the client (as lessee) has the right to use it.
Ijara contract	Leasing contract.
Ijarah Mosufah bil Zimmah:	Ijarah Mosufah bil Zimmah: A lease contract where the lessor undertakes to provide a well-defined service or benefit without identifying any particular units of asset rendering the related service. If a unit of the asset is destroyed, the contract is not terminated and the lessor provides another such unit.
Ijarah Muntahia bi Tamleek	(1) Buyback leasing
	(2) Lease culminating in the transfer of ownership to the lessee in such a way that lease and sale are kept separate and independent transactions. Use of this term for Islamic leasing is better than Ijarah-wal-Iqtina‘, as the latter tends to give the impression that Ijarah and sale are working side by side, while actually they have to be two separate deals.
	A lease ending in the transfer of the ownership to the lessee in such a way that the lease and sale are kept separate and independent transactions. Use of the this term for leasing is better known as  ljarah wa iqtina, as the latter tends to give the impression that the Ijarahand the sale are working side by side when actually they have to be two separate deals to fulfil the Shari'ahrequirement.
Ijarah Sukuk	A Sukuk (Islamic bond) having Ijarah as an underlying structure.
Ijarah Thuma Bai	(1) Leasing and subsequent purchase
	(2) Leasing to purchase. The principle governing an Ijarah contract that allows the lessee (the bank client) to purchase the leased asset for an agreed price though a separate purchase contract.
Ijarah wa Iqtina	(1) Lease purchase. Also known as Ijara wa iqtina.
	(2) Lease contract with a put and/or call option on the leased asset held by the customer
	(3) Lease-purchase contract, whereby the client has the option of purchasing the item.
	(4) Lease to purchase, where the lender finances an asset 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.
	(5) A model of financing by way of hire–purchase, adopted by Islamic banks but different from conventional hire–purchase. It is a contract under which an Islamic bank purchases equipment, buildings, etc., giving them on lease against agreed rentals together with a unilateral undertaking that at the end of the lease period, the ownership in the asset will be transferred to the lessee. The underlying contract is Ijarah and all rules applicable to Ijarah have to be observed to make the deal Shar¯ı´ah-compliant. The undertaking or the promise does not become an integral part of the lease contract to make it conditional. Ownership is transferred through a separate contract of sale or gift. Another term used for this is Ijarah Muntahia-bi-Tamleek.
Ijarah with Diminishing Musharakah	The principle is used for home purchased or Islamic mortgages.  Combining Ijarah with DiminishingMusharakah allows  the bank or lender and the client enter into an agreement to jointly purchase a house, the client pays rentals for the use of the bank's share along with an additional payment towards purchase of the bank's share. Over time, the bank's share is reduced and is gradually acquired by the client. When the bank's share is fully acquired, the bank transfer the ownership to the client. This principle may also be used to acquire any other asset.
Ijma	(1) Consensus.
	(2) To determine or agree to
	(3) Shariah rulings derived from consensus.
	(4) Consensus among jurists based on the Holy Qur’an and sunna, and one of the four sources of law in Sunni Islam.
	(5) Consensus, usually on a given issue as represented by the agreement of the jurists. It is has traditionally been recognised by most Muslim jurists as an independent source of Islamic jurisprudence, along with the Qur'an, Sunnah and Qiyas (analogical deduction).
	(6) Consensus – decision or resolution of generality of the Shar¯ı´ah scholars of any time pertaining to any matters relating to Shar¯ı´ah. Ijma‘a of the Companions of the holy Prophet is considered by the overwhelming majority of Muslims as part of the Sunnah and an important source for the derivation of laws in the subsequent periods.
Ijtihad	(1) Striving (to adapt to law)
	(2) Shari’a rulings and concepts derived from critical thinking (see also: aql).
	(3) The act of independent reasoning by a qualified jurist in order to reach new legal rules.
	(4) Devout and careful reflection and effort; use of independent judgment or original thinking in interpreting the Koran and the Sunna.
	(5) Lit: effort, exertion, diligence; Independent or innovative legal reasoning or interpretation (by qualified Islamic legal scholars) to formulate a ruling on a given issue on the basis of evidence found in Islamic sources.
	(6) An endeavor of a qualified jurist to derive or formulate a rule of law to determine the true ruling of the divine law in a matter on which the revelation is not explicit or certain, on the basis of Nass or evidence found in the Holy Qur’¯an and the Sunnah. Express injunctions have no room for Ijtihad. Implied injunctions can be interpreted in different ways by way of inference from the accepted principles of the Shariah.
Ikhtilat	Combining of invested capital in a partnership into one single amount, so that individual contributions cannot be identified.
Ikhtiyar	Choice. Is to reach an opinion from choice among views already propounded by past scholars;
Illah	(1) The attributer of an exchange or event that entails a particular Divine ruling cases possessing that attribute- cause of Prohibition of specific exchange contracts.Illah is the  basis  for applying analogy for determining permissibility or otherwise of any transaction.
	(2) The attribute of an exchange or event that entails a particular Divine ruling for cases possessing that attribute – cause of prohibition of specific exchange contracts. ‘Illah is the basis for applying analogy for determining permissibility or otherwise of any transaction.
Ilm	Knowledge.
Imam	(1) Leader, guide or ruler.
	(2) Lit. Leader. Guide or ruler. Head of a religious community.
Iman	(1) Faith, belief.
	(2) Personal faith, conviction or belief.
Inah	(See Bai al-Inah)
Inan	(1) A type of Shirkah: a form of partnership in which each partner contributes capital and has the right to work for the business but not necessarily equally.
	(2) A form of partnership in which each partner contributes capital and has a right to work for the business, not necessarily equally.
Infaq	Spending. In the literature of Islamic economics , It usually refers to spending on poor, orphan, Traveler or the people who ar unable to return their debts.
Infitah	open-door policy pursued by Anwar Sadat in the early 1970s.
Insurance	Pooling of risks and many individuals and business entities and transforming them to an insurer/insurance company or a large group in return for payment of a premium.
Interim Financing	Short-term loan to provide temporary financing until more permanent financing is available.
Iqtisad	Lit. moderation; It refers to Islamic approach to economic problems.
Islah	Reform.
Islam	(1) Submission or surrender to the will of God.
	(2) Submission, which dictates that a believer submit to the will the one Almighty God (Allah), conforming inwardly and outwardly to His laws. The doctrine of One God is the most emphasised and repeated principle in The Qur'an. No sacraments or procedures are prescribed for a person to join the faith of Islam. The word islam is also derived from the word silm which means peace."
Islamic Banking	Financial services that comply with the requirements of the Shari'ah. While designed to meet the requirements of the Shari'ah, Islamic banking is not restricted to Muslims; both the financial services provider and the client can be non-Muslims so long as they agree to abide by the requirement of the Shari'ah. Synonym with Islamic finance or Islamic financial services.
Islamic Finance	(See Islamic Banking and Takaful.)
Islamic Financial Institution	A bank or any financial institution whose business is conducted according to the rules of the Shari'ah. Abbr. IFI
Islamic Financial Services	(See Islamic Banking and Takaful.)
Israf	(1) Wasteful expenditure, unnecessary financial yoke.
	(2) Immoderateness, exaggeration in spending wealth and waste, covers spending on objects which are permissible otherwise, spending on superfluous objects, spending on objects which are not needed and are incompatible with the economic standard of the majority of the population (see also Tabzir).
Israf wa Taraf	Luxury activities; profligacy.
Istihsan	(1) Personal interpretation
	(2) A doctrine of Islamic law that allows exception to strict legal reasoning in special circumstances when considerations of human welfare so demand.
	(3) Juristic preference. In Islamic jurisprudence, it refers to departure from the application of a ruling on an exceptional basis by taking a lenient view of an act that may otherwise cause unfairness or distress.
Istijar	(1) Hiring, renting; another term less frequently used for Ijarah.
	(2) A sale in which an asset is supplied on a continuing basis at an agreed price payable at a future date.
	(3) Repeat sale/a continuous purchase or supply contract – an agreement between a buyer and a supplier whereby the latter agrees to supply a particular product on an ongoing basis, for example monthly, at an agreed price and on the basis of an agreed mode of payment.
	(4) A recurring or repeat sale for continuous purchase. A master agreement between a buyer and supplier which facilitates purchasing of goods on ongoing basis (such as monthly) without explicit offer and acceptance each time; the price is fixed either upfront or concluded after a predetermined period which is subject to certain conditions.
Istislah	(1) Method to solve a problem
	(2) To deem proper, a method employed by Muslim jurists to solve problems that find no clear answer in sacred religious texts. It is related to the term Maslaha or "public interest" Istislah bears some similarities to the natural law tradition in the West, however, whereas natural law deems good that which is known self-evidently to be good, according as it tends towards the fulfillment of the person, Istislah calls good whatever is connected to any one of the five basic objectives of theShari'ah: protection of faith, life, progeny, property and reason, some add also honour.
Istisna	(1) Contract to manufacture.
	(2) Commissioned manufacture.
	(3) Progressive financing − a contract where goods are purchased in part progressively in accordance with the progress of a job. This type of financing, along with bai al-salam are used as purchasing mechanisms, and murabaha and bai al-muajjal are for financing sales.
	(4) Order to manufacture (for purchase). It is a contractual agreement for manufacturing goods and commodities, allowing cash payment in advance and future delivery or future payment and future delivery. Istisna‘a can be used for providing the facility of financing the manufacture/construction of houses, plant, projects, bridges, roads and highways.
	(5) A contract of sale of specified goods that have to be manufactured before delivery is possible. A forward sale; literal meaning, to manufacture or build. It is a contract of sale of a specified goods that can be sold before manufactured product comes into existence;  an order to manufacture (for purchase) allowing the buyer to pay the price progressively in accordance with the progress of a job or project or against delivery in stages; takes the form of (progressive financing. It is a condition in istisna'a that the seller provides either the raw material or the cost of manufacturing the goods. There is an obligation on the manufacturer to deliver the goods on completion according to the buyer's specifications.  Istisna’a may include any process of manufacturing including construction, assembling or packaging. Islamic banks commonly adopt istisna’a to provide financing for large projects such as to construct a building, a road or highway, develop an industrial project, build a ship or an aircraft or assemble a factory or machinery. The bank releases finance in phases commensurate with the progress in the manufacturing schedule.
Iwadh	Recompense or equivalent counter value in an exchange.

A B C D E F G H I J K L M N O P Q R S T U W Y Z