Aset Perbankan Syariah Tumbuh 50 Persen

Bandung (ANTARA News) - Bank Indonesia (BI) mencatat pertumbuhan aset perbankan syariah sampai kwartal I 2012 (year on year) sebesar 50,1 persen menjadi Rp151,9 triliun, dari Rp101,2 triliun pada Maret 2011. 
Menurut Direktur Eksekutif Perbankan Syariah Bank Indonesia Edy Setiadi di Bandung, Selasa, pertumbuhan itu menunjukkan perbaikan kinerja perbankan syariah.

Pembiayaan perbankan syariah juga tumbuh 47 persen dari Rp74,3 triliun pada Maret 2011 menjadi Rp109,1 triliun pada Maret 2012.

Sementara rasio pembiayaan bermasalah neto pada kwartal I tahun 2012 turun sebesar 2,02 persen menjadi 1,69 persen.

BI bersama sejumlah bank berusaha mempercepat perkembangan perbankan syariah dengan membentuk forum bersama untuk membahas produk-produk perbankan syariah terbaru yang sesuai dengan standar syariah dari Dewan Syariah Nasional (DSN).

"Kami telah membentuk tim untuk pengembangan produk bersama dengan sejumlah bank untuk menciptakan produk unggulan yang akan dipasarkan ke masyarakat," katanya.(D012)

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Bank BUMN Terbesar di Turki Luncurkan Anak perusahaan Berbasis Syariah

Islamicfinancenews.com--Bank BUMN terbesar di Turki, Ziraat Bankasi akan meluncurkan anak perusahaan berbasis syariah

Bank BUMN terbesar di Negara itu, Ziraat Bankasi telah mengumumkan rencananya untuk meluncurkan anak perusahaan berupa bank umum syariah dengan produk terlengkap dan saat ini sedang mencari mitra usaha. Akan tetapi, Ziraat Bankasi akan tetap mempertahankan saham mayoritas dalam pembentukan bank umum syariah.

“Kami telah menetapkan sejumlah orang untuk menangani proyek pembentukan bank baru ini, Bank Umum Syariah ini akan didirikan sebagai bank yang terpisah dari bank induknya.” Kata Huseyn Aydin, Manajer Umum Ziraat Bankasi.

Akhir-akhir ini Turki telah meningkatkan perhatiannya yang besar terhadap pertumbuhan perbankan Islam di negeri ini. Pemerintah Turki akan mengadakan Turkish-Arab Economic Forum awal bulan ini untuk mengadakan diskusi tentang potensi sukuk sebagai alat pendanaan utama untuk proyek-proyek pembangunan Negara. Regulator pasar modal Turki juga tengah menggarap adanya peraturan beru untuk perluasan sukuk dengan akad-akad Istishna’, Murabahah, Midharabah, Musyarakah, dan Wakalah.

Perusahaan konstruksi lokal dan developer real estate Agaoglu Group juga tengah menggarap pengeluaran sukuk tahap pertamanya senilai 2 Miliar USD untuk pembangunan Istanbul Financial Center.

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Islam Selayang Pandang

Bahasan utama saya dalam blog ini adalah membahas mengenai keuangan berdasarkan hukum Islam. Maka ada baiknya kita ketahui apa itu Islam? 

Islam dalam bahasa Arab berarti "kedamaian dan ketundukan pada Allah SWT". Pemeluk Islam disebut Muslim. Seorang Muslim berusaha hidup secara damai dan selaras dengan sang Pencipta, dirinya sendiri, diri orang lain, dan lingkungan. 

Tabel 1: Fakta Islam

Islam bukan hanya sekadar agama, melainkan juga jalan hidup. Keyakinan pada petunjuk Ilahi adalah prinsip utama yangmengatur kegiatan manusia.

Source: Buku Pintar Keuangan Syariah oleh Daud Vicary Abdullah dan Keon Chee

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Sejarah Keuangan Syariah - 2

Selama abad ke-18, ke-19 dan ke-20, nyaris seluruh dunia Islam dijajah oleh negara-negara Eropa yang mengelola perekonomian dan keuangan negara-negara Islam. Setelah gerakan kemerdekaan setelah Perang Dunia ke II membuahkan hasil, keinginan untuk mengelola urusan mereka sesuai dengan nilai-nilai dan tradisi-tradisi mereka sendiri mulai muncul dari daerah jajahan

Pada 1963, lembaga keuangan syariah modern pertama bernama, Mit Ghamr (bank simpanan), didirikan di Mesir. Bank syariah pertama di Asia adalah Muslim Pilgrims Savings Corporation, bank tabungan haji Malaysia yang didirikan pada tahun 1963.

Pada 1975, IDB (Islamic Development Bank) didirikan di Jeddah, Arab Saudi. Sebagai sebuah lembaga perbankan internasional, IDB "dipercayai dengan fungsi mendorong perdagangan asing dan kerja sama ekonomi di negara-negara Islam. Juga, melakukan penelitian untuk memungkinkan kegiatan ekonomi, keuangan, dan perbankan di negara-negara Islam untuk menyesuaikan diri dengan syariah"(1)

(1) : The Islamic Development Bank-A Case Study of Islamic Co-operation oleh Dr. S.A. Meenai. Taylor and Francis, 1989.

Source: Buku Pintar Keuangan Syariah oleh Daud Vicary Abdullah dan Keon Chee

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Sejarah Keuangan Syariah - 1

Keuangan syariah bukanlah hal baru. Pada saat islam bermula pada abad ke-7 M, Arab saudi terletak didaerah yang dilalui jalu perdagangan pasar rempah-rempah dan logam mulia yang akif. Nabi Muhammad saw. sendiri adalah seorang pedagang dan saudagar sebelum menjadi Rasul.

Al-Qur'an mendorong kaum Muslim untuk bergiat dalam perdagangan dan mencurahkan upaya mereka untuk Allah demi menjamin pahala berlimpah:

مَّن ذَا الَّذِي يُقْرِضُ اللهَ قَرْضًا حَسَنًا فَيُضَاعِفَهُ لَهُ أَضْعَافًاكَثِيرَةً وَاللهُ يَقْبِضُ  وَيَبْصُطُ وَإِلَيْهِ تُرْجَعُونَ

"Siapakah yang mau memberi pinjaman kepada Allah, pinjaman yang baik (menafkahkan hartanya di jalan Allah), maka Allah akan melipat gandakan pembayaran kepadanya dengan lipat ganda yang banyak. Dan Allah menyempitkan dan melapangkan (bagimu) rezeki, dan kepada-Nya-lah kamu dikembalikan" (Q. 2:245)

Didalam ayat lain, Al-Qur'an juga mengingatkan kaum Muslim untuk melakukan perdagangan berdasarkan itikad baik satu sama lain:

يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا أَمْوَالَكُم بَيْنَكُم بِالْبَاطِلِ إِلَّا أَن تَكُونَ تِجَارَةً عَن تَرَاضٍ مِّنكُمْ ۚ وَلَا تَقْتُلُوا أَنفُسَكُمْ ۚ إِنَّ اللَّهَ كَانَ بِكُمْ رَحِيمًا

"Wahai orang-orang yang beriman, janganlah kalian memakan harta-harta kalian di antara kalian dengan cara yang batil, kecuali dengan perdagangan yang kalian saling ridha. Dan janganlah kalian membunuh diri-diri kalian, sesungguhnya Allah itu Maha Kasih Sayang kepada kalian." (Q. 4:29)

Source: Buku Pintar Keuangan Syariah oleh Daud Vicary Abdullah dan Keon Chee

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Prinsip Keuangan Syariah

Tidak seperti keuangan konvensional yang kita ketahui, keuangan syariah memiliki satu syarat utama yaitu, setiap transaksi keuangan harus sesuai dengan ketentuan hukum Islam (syariah).

Untuk menjamin transaksi keuangan yang dipakai sesuai dengan syariah, terdapat 5 prinsip utama yang harus dipatuhi.

Gambar 1: Prinsip-prinsip Keuangan Syariah

1. Keyakinan pada tuntutan ilahi. Alam semesta diciptakan oleh Allah dan Dia menciptakan manusia dimuka bumi untuk memenuhi tujuan-tujuan tertentu lewat ketaatan kepada perintah-perintah-Nya. Perintah-perintah ini tidak hanya dalam urusan ibadah dan ritual keagamaan saja. Melainkan kedalam seluruh aspek kehidupan, termasuk transaksi ekonomi dan keuangan. Manusia membutuhkan tuntunan ilahi karena tidak memiliki kekuatan sendiri untuk mencapai kebenaran.
2. Tidak ada Bunga. Yaitu, Anda tidak boleh menerima bunga dari suatu pinjaman atau diminta untuk membayar bunga atas pinjaman.
3. Tidak ada investasi haram. Uang harus diinvestasikan pada tujuan yang baik, sementara perusahaan-perusahaan yang memproduksi barang haram seperti alkohol, tembakau, senjata, atau pornografi dihindari.
4. Berbagi Resiko dianjurkan. Gagasan ini secara sadar didorong dan dipraktikkan secara rutin antara mitra bisnis seperti nasabah dan lembaga keuangan.
5. Pembiayaan didasarkan pada aset riil. Pembiayaan yang disalurkan lewat produk-produk syariah hanya bisa meningkat seiring dengan meningkatnya perekonomian riil. Sehingga membantu menangkal spekulasi dan ekspansi kredit yang berlebihan.

Source: Buku Pintar Keuangan Syariah oleh Daud Vicary Abdullah dan Keon Chee

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Apa itu Keuangan Syariah?

Keuangan syariah, adalah suatu bentuk keuangan yang didasarkan pada bangunan hukum Islam (syariah). Syariah lebih dari sekedar perangkat aturan aturan hukum, namun juga dipenuhi dengan tujuan moral dan pelajaran tentang kebenaran. Syariah adalah satu istilah yang meringkaskan cara hidup yang diajarkan Allah SWT kepada hamba-hamba-Nya. Mulai dari tata cara berkehidupan hingga tata cara membuat kontrak bisnis, sudah umum digunakannya istilah "sesuai dengan syariah" dalam menggambarkan segala sesuatu yang diatur dalam hukum Islam.

Source: Buku Pintar Keuangan Syariah oleh Daud Vicary Abdullah dan Keon Chee

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Z

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
Zahiri	A school of thought in Islamic jurisprudence of Sunni branch of Islam, the more well-known being Hanafi, Hanbli, Maliki andShafi'i. In Shia branch of Islam the well-know school is the Jafri school.
Zakah	(See Zakat.)
Zakat	(1) Religious tithe
	(2) Voluntary almsgiving (Lit: purification)
	(3) Religious levy or almsgiving as required in the Holy Qur’an and is one of the five pillars of Islam.
	(4) Zakat is the third pillar of Islam −a levy on wealth, which is defined by the Quran on all people having wealth above a prescribed level. The levy must be spent on any of eight categories of beneficiaries. The purpose is to redistribute wealth from the wealthy to the needy. The distribution of zakat funds has been laid down in the Quran, and is for the poor, the needy, zakat collectors, new converts to Islam, travellers in difficulty, captives and debtors, etc. It is payable if the owner is a Muslim and sane. It is an obligatory contribution that every well-off Muslim is required to pay to the Islamic state, in the absence of which individuals are required to distribute the zakat among the poor and the needy as prescribed by the Shari’a.
	(5) The third out of five pillars of Islam. A religious tax on Muslims having wealth over and above an exemption limit (Nisab) at a rate fixed by the Shar¯ı´ah. As such, it is not a tax on income, but on the assets held by a Muslim at a prescribed date (a Zakat day has to be determined for calculation of Zakat money to be paid annually) over and above the amount of Nisab after fulfilment of the normal needs of the owner. The objective is to take away a part of the wealth of the well-to-do and to distribute it among the poor and the needy. It is levied on cash, cattle, agricultural produce, minerals, capital invested in industry and business, etc. The rates are different for different natures of assets. The recipients of Zakah funds have been identified in the Holy Qur’¯an (9: 60) and are the poor, the needy, Zakah collectors, new converts to Islam, travellers in difficulty, captives and debtors and for the cause of the Almighty.
	(6) Lit: blessing, purification, increase or cultivation of good deeds. An obligatory contribution or tax which is prescribed by Islam on all Muslim persons having wealth above an exemption limit at a rate fixed by the Shari'ah.  Zakat is the third pillar of Islam. According to the Islamic belief Zakatpurifies wealth and souls.  The objective is to take away a part of the wealth of the well-to-do and pay it to the Islamic state in the absence of which distribute it among the poor and needy.  It is levied on cash, cattle, agricultural produce, valuable assets, capital invested in industry or business or any other forms that could be termed as wealth.  The distribution of Zakat fund has been laid down in The Qur'an “Alms are for the poor and needy, and those employed to administer the (funds), for those whose hearts have been (recently) reconciled (to Truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah...” (9:60). Also known asZakah.
Zakat al Maal	An annual levy on the wealth of a Muslim (above a certain level). The rate paid, differs according to the type of property owned. This tax is earmarked for amongst others for the poor and needy.
Zakat Fitr	(1) Zakat (religious tithe) due from the start of Ramadan until the prayer ending Ramadan (eid al-fitr)
	(2) Payable by every Muslim able to pay, at the end of Ramadan (the month of fasting). This is also called Zakat al-Nafs (Poll Tax).
Zulm	(1) Injustice, usurping others’ rights, not giving proper recompense in an exchange by way of any illegal act or coercion.
	(2) Injustice, oppression, exploitation, encroaching upon the rights of anyone or usurping other's rights; not giving proper recompense in an exchange by way of any illegal act or coercion.

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Y

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
Yadam bi Yadin	Hand to hand or on the spot (in exchange transactions).

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W

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
Wa'ad	(1) Binding promise in Islamic law
	(2) Promise – does not create contractual rights and obligations; may be binding or unbinding.
	(3) Promise, undertaking. A promise, such as is found in purchase and sale undertakings used in certain Islamic finance transactions; a promise to buy or sell certain goods in a certain quantity at a certain time in future at a certain price.
	(4) Literally a “promise”. In Islamic finance associated with “swaps”, a promise agreement with which returns from one basket of assets are swapped with returns from another; controversially, this mechanism is being used to give hari’a-compliant investors exposure to returns from haram, or non-Shari’a compliant, assets.
Wadiah	(1) Safe custody or deposit.
	(2) Safekeeping, in which the bank is deemed as a keeper and trustee of funds.
	(3) Amanah or deposit; the trustee is not responsible for loss except in the case of negligence on his part. If, however, the Am¯anah amount is used in business, with the permission of the owner, the amount becomes the trustee’s liability.
	(4) Safekeeping of goods with a discount on the original stated cost. An Islamic bank acts as the keeper and trustee of depositors' funds and guarantees to return the entire deposit, or any part of it, on the depositor's demand.
	(5) Custody. Lit: safekeeping. In Islamic banking, wadiah refers to the deposited property,  the acceptance of sums of money for safe-keeping in a Shari'ah-compliant framework, under which it will be repaid. Islamic banks use the concept of  Wadiah(and Amanah) to accept deposits from customers. A bank is deemed as a keeper and trustee of funds and becomes wholly responsible and liable for its safekeeping with a guarantee refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands repayment. The bank may at its discretion and in certain circumstances reward the customer with a payment in the form of Hibah as appreciation for keeping the funds with the bank. Also termed as  Al Wadiah and Wadia. Also see Amanah.
Wadiah Contract	Safekeeping contract (e.g., savings account)
Waheed	(See Wahid.)
Wahid	God's Unity. Arabic term referring to the doctrine of Oneness (of God). Islam holds God ( Allah) is One ( wahid) and Unique (ahad).
Wajib	(1) Obligatory act
	(2) Obligatory, compulsory, mandatory.
Wakalah	(1) An agency contract.
	(2) Contract of agency, can be commutative or noncommutative.
	(3) Involves a contract of agency on a fee-for-services basis with an agent, wakil.
	(4) Delegation or representation; when an agent receives a management fee; when another person acts, usually for a fee
	(5) Agency. A contract of agency in which one party appoints another party to perform a certain task on its behalf, usually for payment a fee or commission. An agency arrangement without provision for payment of a fee cannot be considered irrevocable, thus allowing an agent the right to terminate the agency at any time. Can be commutative or non-commutative.   A bank may charge fees or providing certain services to its customers; the bank can also pay a fee to perform an activity on behalf of the bank, such as an agent to take delivery of goods or investing the bank’s funds. Also termed asAl-wakala.
Wakalah bil Ajr	Same as Wakalah.
Wakalah Khassah	Speical agency
Wakalah with Waqf	A form of the wakalah that uses a foundation (waqf)
Wakalatul Istism¯ar	Investment agency – fund management in which the investor gets all the profit or loss while the fund manager gets a pre-agreed service fee or commission that could be a lump sum amount or a certain percentage of the invested capital.
Wakalatul Istismar	Agency services for management of funds against a pre-agreed fee irrespective of the profit or loss on the relevant portfolio.
Wakil	(1) An agent or general representative.
	(2) In a wakala contract, a representative (agent), who acts on behalf of the principal/investor.
Wali	Guardian.
Waqaf	(See Waqf.)
Waqf	(1) Trust or pious foundation.
	(2) Charitable trusts; property endowed to Islam for the benefit of Muslims.
	(3) Similar to placing an asset, particularly property, in trust. Technically, appropriation or tying-up of a property in perpetuity, so that no proprietary rights can be exercised over the usufruct. The waqf property can neither be sold nor inherited or donated to anyone. The plural of waqf is awqaf.
	(4) Retention of a property for the benefit of a charitable or humanitarian objective, or for a specified group of people such as members of the donor’s family. There are three kinds of Waqf in Islamic jurisprudence: religious Waqf, philanthropic Waqf and family Waqf. The Waqf property can neither be sold nor inherited or donated to anyone.
	(5) Lit.: hold, confinement or prohibition. Technically appropriation or tying-up of a property in perpetuity so that no propriety rights can be exercised over their use.  An endowment of charitable trust in the meaning of holding certain property and preserving it for the confined benefit for a certain charitable objective and prohibiting any use or disposition of it outside that specific objective. This definition accords perpetuity to waqf, i.e., it applies to non-perishable property whose benefit can be extracted without consuming  the property itself. Therefore waqf widely relates to land and buildings. The waqf property can neither be sold nor inherited or donated to anyone. There are three main kinds of Waqf in Islamic jurisprudence: religious waqf, philanthropic waqf and family waqf.
Warranties	Statement attesting that certain statements are true. For instance, the borrower may warrant that it is a corporation, that it is entering into the agreement legally and that financial statements supplied to the bank are true.
Wasiyrah	(See Wasiyyat.)
Wasiyyat	Will. Bequest.
Working Capital	Technically, means current assets and current liabilities. The term is commonly used a synonymous with net working capital. The term often also is used to refer to all short-term funding needs for operations (excluding debt service and fixed assets). A company's investment in current assets that are used to maintain normal business operations. Net working capital, which is the excess of current assets over current liabilities is also interchangeable with working capital. Both reflect the resources in circulation to meet operating needs and obligations as they come due.
Write off	When an investment, such as a loan, becomes seriously delinquent or in default and is determined to be uncollectible, the lender may choose to charge the outstanding investment amount as an expense or a loss.

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T

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
Taawun	(1) A principle of mutual assistance.
	(2) Brotherhood or mutual assistance
Tabarru	(1) Donation, gift, or contribution.
	(2) Charity or donation. In takaful, it is a voluntary pooled fund for the benefit of all members.
	(3) Benefits given by a person to another without getting anything in exchange. For example, gracious repayment of debt, absolutely at the lender’s own discretion and without any prior condition or inducement for reward is covered under Tabarru‘. Repaying a loan in excess of the principal and without a precondition is commendable and compatible with the Sunnah of the holy Prophet (pbuh). But it is matter of individual discretion and cannot be adopted as a system, because this would mean that a loan would necessarily yield a profit, making it usurious.
	(4) Act of charity out of one's own free will without any compulsion or obligation. A donation covenant in which the participants agree to mutually help each other by contributing financially should a fellow participant suffer a loss. A contract to provide somebody any good or service without compensation in return. Takaful is commonly referred to as Islamic insurance as the system must comply with the Shari’ah.  The Tabarru concept is the main core of the takaful  system making it free from uncertainty and gambling.  In aTakaful a contract a participant agrees to donate a pre-determined percentage of the contribution to a Takaful fund set up to provide assistance to fellow participants. In this way the participant fulfill the obligation of mutual assistance and shared responsibility. Also termed as  Aqd tabaru.
Tabzir	Spending wastefully on objects which have been explicitly prohibited by the Shariah, irrespective of the amount of expenditure (see also Isr¯af).
Tafwid	To entrust.
Tahsinat	To lead to decent life.
Tajdid	Renewal.
Takaful	(1) Mutual guarantee.
	(2) Islamic insurance
	(3) Takaful refers to mutual support which is the basis of the concept of insurance or solidarity among Muslims.
	(4) A form of Islamic insurance based on the principle of Ta’awon or mutual assistance. It provides for mutual assistance in cases of loss to life, assets and property and offers joint risk-sharing in the event of a loss incurred by one of the pool members.
	(5) This is a form of Islamic insurance based on the Quranic principle of ta’awon or mutual assistance. It provides mutual protection of assets and property, and offers joint risk sharing in the event of a loss by one of its members. Takaful is similar to mutual insurance in that members are the insurers as well as the insured. Conventional insurance is prohibited in Islam because its dealings contain several haram elements, including gharar and riba, as mentioned above.
	(6) An Arabic word meaning “guaranteeing each other” or joint guarantee through mutual support and shared responsibility whereby a group of persons agree to jointly guarantee among themselves against a defined loss. Known as Islamic insurance, a form of insurance based on the Quranic principle of mutual assistance ( ta'awuni). Structured as a charitable collective pool of funds based on the idea of providing mutual protection and shared responsibility and joint risk sharing in the event of a loss by one of its participants. The p articipants regulary contribute a sum of money into the pool of funds. Takafulschemes are designed to avoid the elements of conventional insurance (i.e. interest and gambling) as well as investment of  the (takaful) funds in activities that are prohibited by the Shari'ah.
Takaful at Ta'awuni	Coperative concept of risk-sharing and mutual self-help by members of a group or scheme.
Taliq	Conditions which suspend a contract to any future event.
Tamein	Arabic word used for insurance.
Tamin	Insurance.
Tamlikat	Contract: acquiring of ownership.
Tamthil	Similarity or likeness.
Taqlid	Imitation.
Taqwa	(1) Righteousness
	(2) Piety, virtue and righteousness with a sense of accountability to Allah (SWT). It encompasses not only obedience to Allah, but also the love of fellow human beings, who should be treated as part of an extended human family.
Taqyidat	Contract: restrictions.
Taslif	A sale by advance payment.
Tauthiqat	Contract: security.
Tawakkul	Trust in God for the result after one has undertaken all necessary effort. It is one of the important values for Muslims. After making all necessary efforts, a Muslim believs that the result are in hands of GOD.
Tawarruq	(1) Reversed murabaha.
	(2) Structure for cash financing
	(3) Acquiring cash through trade activities – to buy on credit and sell at spot value with the objective of getting cash, meaning that the trade transaction was not needed by the buyer; he simply wanted liquidity, which he got by purchasing a commodity on credit and selling the same to a third party on cash.
	(4) Reverse Murabaha, for the purpose acquiring cash through trade activities.  Technically, according to the Muslim jurists,tawarruq can be defined as: a person who buys a commodity at a deferred price, in order to sell it in cash at a lower price. Usually, the sale is to a third party, with the aim to obtain cash. This is the classical formtawarruq , which is permissible, provided that it complies with the Shari’ah requirements on sale (bai).
Tawheed	(See Tawhid.)
Tawhid	(1) The need to submit fully to God
	(2) In Arabic it means attributing Oneness toAllah and describing Him as being One and Unique, with no partner or peer in His Essence and Attributes. Strictly singular; reference to One God.
Tawliyah	Sale at cost.
Tazir	Punishments not expressly provided in the Holy Qur’¯an and Sunnah; awarded by a judge at his own discretion, keeping in mind the severity of the crime.
Term	Refers to the maturity or length of time until final repayment on a loan, bond, sale or other contractual obligation.
Thaman	(1) Exchange of all forms of currency.
	(2) Price, monetary value of a commodity in an exchange.
Thaman e Mithl	Normal/market price that has to be paid in case any issue arises in deciding the actual price in any transaction.
Thawab	Reward.
Tijarah	Trade; Business.

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U

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
Ujr	Fee
Ujrah	(1) The financial charge for using services (wage, salary, allowance, commission, fee).
	(2) Wages/service fees against work done for others; Ijarah of services; different from Ju‘alah which means giving a reward for accomplishment of a defined task. While in Ujrah, acceptance of “offer” by a specified person is necessary, in Ju‘alah, anyone who hears the offer can undertake the work and becomes entitled to reward only upon completion of the job.
Ujratul-mithl	A remuneration or compensation which has to be given as per normal market rate if the underlying contract(s) become voidable.
Ukhuwah	Spirit of brotherhood.
Ulama	(1) Learned men or religious scholars.
	(2) Scholars, Muslim scholars trained in Islam and Islamic law.
	(3) The learned class, especially those learned in religious matters.
Umma	(1) The community; the body of Muslims.
	(2) Community of believers or nation of Islam.
	(3) Overarching global Muslim community or society
	(4) The Diaspora or ‘Community of the Believers’ ( ummat al mu’minin),  the worldwide community of Muslims.
Umra	(See Umrah.)
Umrah	Lit: visiting or attending. It is a mini-pilgrimage to Makkah which is not compulsory, but highly recommended, and can be performed at any time of the year.
Uqood Ghair Mu‘awadha	(1) Non-Commutative.
	(2) Uqood Ghair Mu‘awadha: Noncommutative contracts wherein one cannot get any return or compensation, contracts of Bai‘, Ijarah and Wakalah. debt (Hawalah).
Uqood e Mu‘awadha	(1) Commutative, characterised by substitution.
	(2) Uqood-e-Mu‘awadha: Commutative contracts in which one can genuinely take any return, like contracts of Bai‘, Ijarah and Wakalah.
Urboun	(See Arbun.)
Urbun contract	Sale in which the buyer deposits money in advance
Urf	(1) Custom
	(2) Custom. Usage, common practice. Urf is one of the sources of the Islamic law as long as it does not contradict the primary sources of the  Shari'ah i.e. the Qur'an and theSunnah.
Ushr	Ten percent (in some cases five percent) of the agriculture produce payable by the Muslim as a part of his religious obligation, like Zakah, mainly for the benefit of the poor and the needy.
Usufruct	A legal right to use and derive profit from property belonging to someone else provided that the property itself is not damaged.
Usul el Fiqh	(1) Islamic legal theory.
	(2) Principles of Islamic jurisprudence.

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Word	Meanings
Sa‘a	A measure that was used for exchanging/trading grains.
Sadaqa	(1) Charitable giving.
	(2) Pious work of charity.
	(3) Charitable giving. An act of charity.
Sadaqa Jariyah	An act of charity with perennial benefits.
Sadd az Zarai	(1) Prohibition of a deed which, if permitted, may lead to another prohibited deed.
	(2) To prohibit a transaction on the grounds of blocking the means to an illicit end.
Sahabah	Companions of the holy Prophet of Islam – the people who saw the holy Prophet while being firm believers (Muslims).
Sahih	Valid, said of a contract. (Opp. Batil.)
Sahih Contract	Valid contract
Salaf	(1) Lit. The ‘pious ancestors’, usually includes the Prophet Mohammed and the first four ‘rightly guided’ caliphs.
	(2) In a wider sense, it refers to a loan which draws forth no profit for the creditor and is slightly different from Qard in that an amount given as Salaf cannot be called back before it is due; it includes loans for specified periods, i.e. short, intermediate and long-term loans. See Qard.
	(3) Used in two senses: (i) literally, payment in advance; a loan which draws forth no profit for the creditor; it includes loans for specified periods, i.e. short, intermediate and long-term loans; slightly different from Qard – an amount given as Salaf cannot be called back, unlike Qard, before it is due. Also, another name of Salam – forward sale; (ii) Forebears – jurists and scholars of early periods of Islam.
Salah	(See Salat.)
Salam	(1) Deferred sale
	(2) Advance purchase.
	(3) Submission or peace
	(4) A forward sale where the full price of the goods is paid in advance at the time of contract; the goods are not available for immediate delivery but can be delivered at a specified time in the future. In other words, advance purchase or a type of sale in which the full price of the goods is paid in advance and the goods are delivered later at a specified date in the future. It is similar to a modern forward sale contract. Under Shari'ah, a sale cannot normally be effected unless the goods are in existence at the time of the contract. However, this type of sale is an exception provided the goods are defined and the time of delivery is fixed. The exception was practiced in the early days of Islam to meet the needs of the small farmers in Arabia who required money to grow their crops and to feed their family until the time the crop could be harvested and sold; owing to the prohibition of riba they could not borrow money on interest; they were allowed to sell the agricultural produce in advance of cultivation for delivery later and take payment in advance. The object of the sale must be tangible goods that can be defined as to quantity, quality and workmanship. The mode of financing is often applied in the agricultural sector, where Islamic bank advances money without interest for various inputs and in exchange receives a share of the produce, which it then sells after delivery. To hedge against fall in prices, the bank can also sell the goods to a third party before delivery through a parallel contract of Salam. Salam covers all tangible goods which are capable of being definitely described as to quantity, quality and workmanship.
Salat	(1) Prayer.
	(2) Obligatory prayers said five times a day, practiced by Muslims in supplication to Allah swt.
Sallalahu Alayhi Wassalam	Abbreviated as S.A.W. meaning "peace and blessing of God upon him" with reference to Prophet Muhammad. More frequent term used is pbuh.
Sanadat	Certificates of investment – another name for Sukuk.
Sarf	Contract in which both exchange items are gold, silver or any monetary units.
	Currency exchange. In pre-Islamic times it was exchange of gold for gold, silver for silver and gold for silver or vice versa. In Islamic jurisprudence such exchange is regarded as ‘sale of price for price' (Bai al Thaman bil Thaman), and each price is consideration of the other. It also means sale of monetary value for monetary value in currency exchange, such as buying and selling of currencies.
Saw´am bi Sawaa	Equal for equal (in exchange transactions).
Security	A pledge made to secure the performance of a contract or the fulfillment of an obligation. Examples of securities include real estate, equipment stocks or a co-signer. Mortgages are a form of security with strong legal standing, because they are publicly registered following a formal legal procedure. A mortgage gives the lender holding a mortgage security the right to reclaim the asset being financed, if repayment is not made.
Senior Debt	Debt that must be repaid before a subordinated debt receives any payment in the event of default.
Shafi'is	One of the four well-known schools of thought in Islamic jurisprudence or religious law engaged in the interpretation of theQur’an and Sunnah. Founded by one of the classical jurists, Imam Abdullah Muhammad ibn Idris al-Shafi'i (d. 804 AD), followers are known as Shafis. Others are Hanbalis,Hanafis and Malikis. The Shafi'i school is considered the easiest school in terms of social and personal rules. Zahiri is another known school developed by Daud ibn Khalaf (d. 883 AD).
Shafis	(See Shafi'is)
Shahada	Proclamation of faith.
Shariah	(1) Islamic law.
	(2) Islamic principles or law
	(3) Islamic religious law derived from the Holy Qur’an and the sunna.
	(4) Divine guidance as given by the Holy Qur’¯an and the Sunnah of the Prophet Muhammad (pbuh); embodies all aspects of the Islamic faith, including beliefs and practice.
	(5) Islamic law derived from three primary sources: the Quran; the Hadith (sayings of the ProphetMohammed); andtheSunnah(practiceandtraditions of the Prophet Mohammed), and three secondary sources: qiyas (analogical deductions and reasoning), ijma (consensus of Islamic scholars) and ijtihad (legal reasoning).
	(6) Often referred to as Islamic law. Shari'ah as a legal case did not exist at the time theQur'an was revealed. It is a system that is all too often misunderstood and misinterpreted in the West. Refers to the rulings contained in and derived from The Quran and the Sunnah (sayings and living example of the Prophet Muhammad (pbuh). These cover every action performed by an individual or a society.  It is primarily concerned with a set of values that are essential to Islam and the best manner of their protection. The essential values of the Shari'ah include those of faith, life, intellect, lineage, property, protection of honour, fulfillment of contracts, preservation of ties of kinship, honouring the rights of one’s neighbour in so far as the affairs of this world are concerned, and the love of God, sincerity, trustworthiness and moral purity, in relationship to the hereafter.
Shariah Advisor	An independent Islamic scholars who advises Islamic financial institutions, providing guidance and supervision in the development of Shari'ah compliant products and maintaining Shari'ah compliant operations. Usually a classically trained Islamic legal scholar. While some Islamic financial institutions consult individual Shari'ah advisors, most establish a committee of Shari'ah advisors, often known as a Shari'ah Board or Shari'ah Supervisory Board. (See Shari'ah Scholar.)
Shariah Board	(See Shari'ah Supervisory Board. Also known as Shari’ah Supervisory Committee.)
Shariah Compliant	"Term used in Islamic finance to denote that a financial product or activity that complies with the requirements of the Shari'ah, for example Shari'ah compliant financing orShari'ah compliant investment. Islamic finance derives its principles from the Shari'ah, which is based on the Qur’an and the Sunnah. The key defining characteristics in the application of Shari'ah to financing structures are that transactions should be based on tangible assets, and should not bear interest ( riba). The generation of profit is very much encouraged, and many commentators also identify risk sharing as being one of the quintessential features of any Islamic financing. Shari'ah principles also forbid uncertainty ( gharar), speculation or excessive uncertainty ( maysir) and gambling ( qimar), and well as activities in certain prohibited areas.
Shariah Scholar	Islamic Shari'ah scholars who are well-versed with the necessary knowledge and competencies in the Shari'ah and its approaches to economic and financial issues.
Shariah Supervisory Board	The committee of Islamic scholars available toanIslamic financial institution for guidance and supervision on religious interpretation and application in the development of Shari’a-compliant products.
Shariah Supervisory Board	An authority, usually a committee of Islamic scholars well-versed and competent inShari'ah and its approaches to economics and finance, appointed by an Islamic financial institution, which supervises and ensures both the Shari’ah compliance of new product development and the operations.
Sharikah al Mufawadah	A partnership among the equal partners. Unlimited partnership.
Sharikah al Wujuh	A partnership on the basis of credibility.
Sharikah as Sanai	Same as Sharikah-al-Abdan.
Shart e Jazai	Aclause that a purchaser can put into an Istisna‘a agreement whereby the price of the item being manufactured would decrease in the case of a delay in delivery by the seller/manufacturer whereby the delay benefits the purchaser – unlike all other modes in which any penalty imposed due to default or delay in payment of liabilities goes to the charity account and not to the banks’ P & L accounts.
Shirka	(1) Society or partnership.
	(2) A contract between two or more persons who launch a business or financial enterprise to make profit. Shirka = musharaka.
	(3) Sharing, partner. A contract between two or more persons who launch a business or financial enterprise to make profit. In the present Islamic banking and finance terminology, Shirkah may include bothMudarabah and Musharakah and variois other Musharakah-like business and commercial partnerships.
	(4) Commingling by two or more people of their money or work or obligations to earn a profit or a yield or appreciation in value and to share the loss, if any, according to their proportionate ownership In the present Islamic banking terminology, it may include both Musharakah and Mudarabah and various kinds of Musharakah like business/commercial partnership, partnership by ownership and permanent or redeemable partnership.
	(5) (see musharaka.)
Shirkatul Aqd	(1) Commercial/business partnership – a contract between two or more people who launch a business or an enterprise to make profits.
	(2) A contract between two or more persons who launch a business or financial enterprise to make profit. Generally, it is termed as ‘shirkah’.
Shirkatul Milk	(1) Partnership by ownership or in the right of ownership; not for business.
	(2) Partnership by ownership, which could be automatic as in the case of inheritance by e.g. two brothers, or optional such as two persons purchasing a property jointly (not for commercial purpose).
Shuf‘ah	Pre-emptive right of a partner in a joint ownership or a neighbour in sale of landed properties.
Shura	Consultation by the ruler of the community notables.
Speculation	A a process that relies on the analysis of a lot of economic and financial data, companies' financial reports, political decisions, information about management skills and aptitude and the personal profile of the decision maker. Financiers would call this as financial planning, budgeting, or investing. Finance is concerned with risk reduction. Speculation involves risk-taking.
Subordinated Debt	Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt-holders receive payment only after senior debt is paid in full. A subordination of security interest in property allows another creditor to have the rights to the proceeds of the sale of that property before the claim of the subordinated creditor.
Suftaja	(1) An instrument in traditional Islamic finance used for cash transfer/payment which involved the act of depositing a certain amount of money with someone for settlement or to the benefit of the depositor or his representative at another place or in another country. A type of instrument used for the delegation of credit during the Muslim period, especially the Abbasides period. It was used to collect taxes, disburse government dues and transfer funds by merchants.
	(2) A banking instrument used for the delegation of credit and was used to collect taxes, disburse government dues and transfer funds by merchants. In some cases, suftajas were payable at a future fixed date and in other cases they were payable on sight. Suftaja is distinct from the modem bill of exchange in some respects. Firstly, a sum of money transferred by suftaja had to keep its identity and payment had to be made in the same currency; exchange of currencies could not take place in this case. Secondly, suftaja usually involved three persons; A pays a certain sum of money to B for agreeing to give an order to C, to pay back to A. Thirdly, suftajas can be endorsed.
	(3) A type of banking instrument used for the delegation of credit during the early Muslim period, especially the Abbasides period (749 to 1258 AD). It was used to collect taxes, disburse government dues and transfer funds by merchants and was commonly used by travelling merchants. It involved three parties: the payor, the payee and the transmitter.Suftajah could be payable on a future date or immediately. A suftajah held by one party could be endorsed to another party. The Arab merchants were using endorsements (hawalah) since the days of Prophet Muhammad (pbuh). It differs from the modern bill of exchange in that a sum of money transferred by suftajah had to keep its identity and payment had to be made in the same currency.
	(4) (See Suftajah.)
Sukuk	(1) Islamic bonds (sing. Sakk)
	(2) Freely tradeable Islamic participation certificate based on the ownership and exchange of an approved asset.
	(3) Certificates of equal value representing undivided share in ownership of tangible assets of particular projects or specific investment activity, usufruct and services.
	(4) Equivalent to an asset-backed fixed income bond. A certificate entitling the holder to the benefits of the income stream of the assets backing the certificate. Sukuks can be listed and rated, though this is not necessary, depending on the target investor market. Sukuks are typically issued by corporate issuers, and some financial institutions, and also by governments.
	(5) A financial certificate. Similar characteristics to that of a conventional bond with the key difference being that they are assets backed; sukuk represent proportionate beneficial ownership in the underlying tangible asset(s) of particular projects or investment activity. Because the conventional interest-bearing bond structure is not permissible, the issuer of  sukuk sells an investor group the certificate, who then leases it back to the issuer for a predetermined return in the form of rental charges . The issuer also makes a contractual promise to buy back the bonds at a future date at par value. Sukuk must be able to link the returns and cash flows of the financing to the assets purchased, or returns generated from an asset purchased. This is because trading in debt is prohibited by theShari’ah; as such, financing must only be raised for identifiable assets.
Sukuk al Musyarakah	Investment sukuk
Sunna	(1) Commendable act
	(2) Sayings of the Prophet Muhammad
	(3) Practices and rulings deduced from the deeds, utterances and unspoken approvals of the Prophet and his companions.
	(4) Source of information concerning the practices of the Prophet Muhammad and his Companions, and is the second most authoritative source of Islamic law.
	(5) Lit. custom, habit or way of life. Technically, it refers to actions, sayings and utterances of the holy Prophet Muhammad (pbuh), or actions of others tacitly approved by him, as reported in the books of Hadith.
	(6) Lit: custom, habit or way of life. Commonly understood as the sayings and living example of the Prophet Muhammad (pbuh) as recorded in the books of Hadith.Sunnah is a legislative source along with The Qur’an; The Qur’an cannot be understood without the application of Sunnah.
Sura	(1) Chapters in Quran (sing. surat)
	(2) Chapter of the Holy Qur’an. There are 114 suras of varying length and in all references to the Holy Qur’an (for example 30:39) the first number refers to the sura and the second to the aya or verse.
SWT	It refers to " Subhanahu wa-ta'ala", an Islamic Arabic phrase meaning, "glorious and exalted is He ( Allah)." The phrase (often abbreviated to " swt") appears after the name of Allah in Islamic texts such as the Qur'anand the Hadith. Saying this phrase is seen as an act of reverence and devotion towardsAllah among Muslims

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Word	Meanings
Rab al Mal	(1) Silent-partner investor
	(2) Beneficial owner or sleeping partner.
	(3) In a mudaraba contract, the person who invests the capital.
	(4) The person who invests the capital in a Shirkah/Mudarabah contract.
	(5) The owner of capital or financier in a mudaraba partnership agreement (also sahib al-mal).
	(6) Owner of capital. In a mudarabah contract the person who invests the capital (the capital owner or financier); the investor in mudarabah contract.
Rahn	(1) Collateralized financing
	(2) Pledge, collateral; legally, Rihn means to pledge or lodge a real or corporeal property of material value as security for a debt or pecuniary obligation, so as to make it possible for the creditor to recover the debt, in the case of nonpayment, by selling the pledged property.
	(3) Pledge. Collateral; technically and legally, it means to pledge or lodge a real or tangible property of material value as security for a debt or pecuniary obligation so as to make it possible for the creditor to recover the debt, in case of non-payment or default, by selling the pledged property. A security given for the payment of a debt. Also known as Al-Rahnor Rahn or  Rihn.
Raiee	In charge – one who is responsible for his subordinates.
Ramadan	Month of fasting for Muslims. It is the ninth month of Islamic calendar, during which Muslims fast; it is also a time for reflection, intensive prayer and self-restraint.
Ras al Mal	Principal amount of a loan or a debt or money invested in a business.
	Capital; the money or property which an investor ( rabb al-mal) invests in a profit-seeking venture, often in a partnership as inmudarabah or musharakah.
Real Asset	Physical or tangible or identifiable assets such as gold, land, equipment, patents, etc. (Opp. financial asset.)
Receivables	Accounts receivable; an amount that is owed the business, usually by one of its customers as a result of the ordinary extension of credit,
Recourse	Refers to the right, in an agreement, to demand payment from the person who is taking on an obligation. A full recourse loan refers to the right of the lender to take any assets of the borrower if repayment is not made. A limited recourse loan only allows the lender to take assets named in the loan agreement. A non-recourse loan limits the lender's rights to the particular asset being financed -- an approach that is common in home mortgages and other real estate loans.
Reinsurance	Insurance bought by insurance companies (insurers). A reinsurer, such as an reinsurance company, assumes part of the risk and part of the premium taken by the original insurer. Reinsurance effectively increases an insurer's capital and therefore its capacity to sell more insurance. Reinsurers do no pay policyholders' claims, instead they reimburse insurers for claims paid by the insurers.
Religious Board	Religious Board in Islamic financial institutions comprise of Shari'ah schloars or advisors are appointed to ensure compliance with the Shari'ah requirements; they have both consultative and supervisory functions. Also termed as Shari'ah Supervisory Board.
Restructure	A revision of a financial agreement that alters the conditions or covenants of the original agreement. For example, parties may agree to restructure a loan agreement, easing the payment schedule, when a borrower is delinquent or otherwise faces default on a loan.
Retakaful	Reinsurance based on Islamic principles. It is a mechanism used by direct insurance companies to protect their retained business by achieving geographic spread and obtaining protection, above certain threshold values, from larger, specialist reinsurance companies. Reinsurance has been defined as “insurance of the liabilities of the direct insurer”. Reinsurance of Takaful business on Islamic principles is known as Retakaful.
Riba	(1) The giving or receiving of interest
	(2) Interest or usury (literally, increase or addition).
	(3) Lit. Excess or increase; and covers both interest and usury.
	(4) Interest − one of the three fundamentals prohibitions in Islamic finance (the other two being gharar and maysir). Literally meaning an “increase” or “addition”, technically it denotes any advantage obtained by the lender as a condition of the loan. Any risk-free or “guaranteed” rate of return on a loan or investment is riba. Riba, in all forms, is prohibited in Islam.
	(5) Lit: an excess or increase. Technically, it means an increase over the principal in a loan transaction, over a debt or in exchange transactions, accrued to the lender/creditor or a party to exchange without giving an equivalent counter value or recompense (‘iwad) in return to the other party.
	(6) Lit: increase or addition. Technically it denotes any increase or addition to capital obtained by the lender as a condition of the loan.  In simple terms Riba covers any return on money on money, whether the interest rate is fixed, floating, simple or compounded and at whatever rate which is guaranteed irrespective of the performance of the investment, is considered riba and is so prohibited. Riba, in all forms, is strictly prohibited in Islamic tradition as it is considered an unjust return that leads to unjust enrichment. Commonly understood as "interest" charged or received on lending though the legal definition goes beyond just interest.  It is one of the three fundamental prohibitions in Islamic finance, the other two being gharar and maysir.
Riba ad Diyun	Interest/usury of debt. Another name forRiba al-nasiah.
Riba al Buyu	Usury of trade. Another name for Riba al-fadl.
Riba al Fadl	(1) The quality premium in exchange of low quality with better quality goods, e.g. dates for dates, wheat for wheat, etc. – an excess in the exchange of Ribawi goods in the case of a single genus on both sides. The concept of Riba Al-Fadl refers to exchange/sale transactions.
	(2) A sale transaction in which a commodity is exchanged for the same commodity but unequal in amount, such as unequal exchange involving larger amount of low quality goods with smaller amount better quality goods, resulting in an excess in exchange. The concept of Ribal al fadl refers to exchange and sale transactions in trade. To avoid riba-al-fadl the exchange of commodities from both sides should be equal and instant. Riba al-fadl was prohibited by Prophet Muhammad (pbuh) to forestall riba from creeping into the economy. Also known as Riba al-buyu.
Riba an Nasiah	(1) Riba of delay, due to exchange not being immediate with or without excess in one of the counter values. It is an increment on the principal of a loan or debt payable. It refers to loan/credit transactions or lending money on the understanding that the borrower will return to the lender at the end of the period the amount originally lent together with an increase on it, in consideration of the lender having granted him time to pay. Interest, in all modern banking transactions, falls under the purview of Riba Al-Nasiah.
	(2) Interest-based lending. Riba of delay or usury of debt, due to exchange not being immediate with or without excess on one of the counter-values. Increment on the principal of a debt or loan payable by the borrower. It refers to the practice of lending money for any length of time on the understanding that the borrower would return to the lender the amount originally lent together with an increase on the loan amount, in consideration of the lender having allowed the borrower time for repayment.Usury of debt was an established practice amongst Arabs during the pre-Islamic period. The increment was known as riba al-nasia. Interest in all conventional banking transactions come under the scope of Riba al-nasiah. Also known as Riba al-diyun.
Ribawi	Goods subject to Fiqh rules on Riba in sales – monetary units and items sold by weight and/or by measure, including gold, silver, paper currencies, edible goods like wheat, rice, barley, dates, salt, etc.
Ribh	Root of murabaha Cost plus Profit It is referring to a sale where a seller’s sale an objective to others, where the cost of object is known for buyer.
Ribh al Mithl	Matching rate of profit.
Rihn	(See: Rahn.)
Roll Over	Prior to or at the time of the maturity of an investment or loan, the interested parties agree to continue to carry over the investment or loan for another, successive period of time.
Rukban	Grain dealers coming from the tribal/rural areas to the town to sell goods.
Rukn	Cornerstone of a contract, an essential requirement.
Ruqa	Banking instrument of the early Muslim period.  It was a payment order to draw money from the bank.
Rushd	Age of discretion, maturity, puberty, majority, as in Takaful.

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