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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.

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Word	Meanings
Garam	Damage, Loss, as in Takaful.
Ghaban	Misappropriation or defrauding others in respect of specifications of the goods and their prices.
Ghaban e Fahish	(1) Excessive profiting with deception, exorbitant price.
	(2) Excessive profiteering with deception – a person sells a commodity stating explicitly or giving the impression that he is charging the market price, but actually he is charging an exorbitant price taking benefit of the ignorance of the purchaser – in such cases the purchaser has the option to revoke the sale and get back the price paid (see Khiyar-e-Ghaban).
Gharar	(1) Uncertainty, speculation.
	(2) Deception, hazard, speculation, uncertainty, risk (literally, peril or hazard)
	(3) "Deception through ignorance by one or more parties to a contract. Gambling is a form of gharar because the gambler is ignorant of the result of the gamble. Gharar can occur in several ways, all of which are haram.
	(4) Uncertainty, hazard, chance or risk. Technically, the sale of a thing which is not present at hand; or the sale of a thing whose consequence or outcome is not known; or a sale involving risk or hazard in which one does not know whether it will come to be or not. There are several types of gharar, all of which are haram. The word gharar denotes deception. Bai al-gharar is an exchange in which there is an element of deception either through ignorance of the goods, the price, or through faulty description of the goods. Bai algharar is an exchange in which one or both parties stand to be deceived through ignorance of an essential element of exchange. Gambling is a form of gharar because the gambler is ignorant of the result of his gamble.
	(5) Literally, uncertainty, hazard, risk relating to major elements of a contract; technically, sale of a thing which is not present at hand, or the sale of a thing whose consequence or outcome is not known, or a sale in which one does not know whether it will come to be or not, such as fish in water or a bird in the air. It refers to an element of absolute or excessive uncertainty in any business or a contract about the subject of contract or its price, or mere speculative risk. It leads to undue loss to a party and unjustified enrichment of another, which is prohibited. Gambling is a form of Gharar because the gambler is ignorant of the result of the gamble. Selling goods without allowing the buyer to properly examine the goods is also a kind of Gharar. Some examples of Gharar are: selling goods that the seller is unable to deliver; selling known or unknown goods against an unknown price, such as selling the contents of a sealed box without exact information about its contents; selling goods without proper description; selling goods without specifying the price, such as selling at the “going price”.
	(6) Literally, uncertainty, hazard, chance or risk.  Technically, sale of a thing which is not present at hand; or the sale of a thing whose consequence or outcome is not known; or a sale involving risk or hazard in which one does not know whether it will come to be  or not, such as fish in water or a bird in the air. It is an exchange in which one or more parties stand to be deceived through ignorance of an essential element of the exchange. Thus it refers to an element of absolute or excessive uncertainty in any business or contract. Gambling (qimar) is a form of gharar because the gambler is ignorant of the result of the gamble. ( ghararone of the three fundamental prohibitions in Islamic finance, the other two being riba andmaysir).  The Hanafi  school of Islamic jurisprudence defined gharar as "that whose consequences are hidden." The Shafi'ischool defined gharar as "that whose nature and consequences are hidden" or "that which admits two possibilities, with the less desirable one being more likely." TheHanbali school defined it as "that whose consequences are unknown" or "that which is undeliverable, whether it exists or not." Ibn Hazn of the Zahini school wrote " Gharar is where the buyer does not know what he bought, or the seller does not know what he sold.'
Gharar fi al Ajal	Uncertainty with respect to time of the delivery.
Gharar fi al Miqdar	Uncertainty with respect to quantity of goods.
Gharar fi al Taslim	Uncertainty with respect to delivery of the goods.
Gharar fis Sifah	Uncertainty with respect to characteristics of the goods.
Gharar Yasir	A small amount of gharar that may be unavoidable.
Gharim	A debtor who does not possess the fund with which to repay his/her debt. According to the Hanifi jurists, a gharim is one who whose funds, after repayment of his debt, would not to equal the nisab. The Shafi andMaliki jurists divide gharim into two types: i) those whose debts were incurred in their own benefit and 2) those whose debts were incurred benefiting others. The gharimun (pl. for gharim) are one of the eight groups mentioned in the Qur'an as legitimate recipients of the Zakat funds.
Gharmeen	One head of the Zakat beneficiaries – broadly, those who are obliged to pay others’ debts as sureties. An Islamic State can make up their loss by paying from Zakat proceeds.
Ghasib	Usurper of property of others.
Ghayr Lazim Contract	A contract that either party may terminate
Ghosh	(1) Fraud.
	(2) Feud, as in Takaful.
Guaranteed Loan	A pledge to cover the payment of debt or to perform some obligation if the person liable fails to perform. When a third party guarantees a loan, it promises to pay in the event of a default by the borrower.

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Word	Meanings
Habal al Hablah	Sale of what is in the womb of an animal; a sale where its subject matter is not clearly known – prohibited due to Gharar.
Hadiah	Donation.
Hadith	(1) Oral traditions relating to the words and deeds of Muhammad
	(2) Stories about and sayings (specific pronouncements, deeds, or approvals of other people’s actions) of the Prophet.
	(3) A record of the sayings and living example of the Prophet Muhammad (pbuh), referred to as the Sunnah.
	(4) the technical term for the source related to the sunna, the sayings– and doings – of the Prophet, his traditions.
Haja	Necessity.
Hajj	(1) Pilgrimage.
	(2) Pilgrimage to Makkah combined with other holy places. Hajj, the fifth pillar of Islam, is a duty on every Muslim who is financially and physically able to carry it out, at least once in his/her lifetime.
Halal	(1) Lawful or permissible.
	(2) Permitted according to shari’a.
	(3) Anything permitted by the Shariah; permissible goods, valid earnings, etc.
	(4) That which is permissible. In Islam, there are activities, professions, contracts and transactions which are explicitly prohibited (haram). Barring them, all other activities, professions, contracts, and transactions etc. are halal.
	(5) That which is permissible by the Shari'ah, valid earnings.  The concept of halal has spiritual overtones.  Muslims believe that all things have been provided by God, and the benefits derived from them, are essentially for the use of mankind, and so are permissible except what is expressly prohibited in The Qur’an or the Sunnah. It also refers to activities, contracts and transactions as well as earnings. When guidance is not clearly given in The Qur’an there are several other sources of law, for example, guidance can be sought from Fiqh, which means ‘understanding’ and is the science of jurisprudence: the science of human intelligence, debate and discussion.The concept of halal is one of the distinctive features of Islamic economics vis-a-vis Western economics where no such concept exists.  In Western economics, all activities are judged on the touchstone of economic utility.  In Islamic economics, other factors, mostly ethical and moral are also involved.  An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shari'ah.
Hamish Jiddiyah	(1) Token money, down payment by a party intending to purchase certain goods who wishes to confirm the intention to do so by paying an amount to the seller as token money or down payment to secure the goods. Also, see Arbun.
	(2) The margin reflecting firm intention of the promisee – earnest money taken from a person who intends to purchase a commodity from or enters into a contract with anyone to confirm his sincerity to actually purchase the commodity when offered. In the case of breach of promise, the promisee has the right to recover his actual loss incurred due to the breach.
Hanafi	"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 Abu Hanifa (d. 765 AD), followers of this school are known asHanafi's. Others are Hanbalis, Malikis andShafi'is.  Zahiri is another known school developed by Daud ibn Khalaf (d. 883 AD). The Jafri Shia Islam school in Islamic jurisprudence was developed by Imam Ja'far al-Sadiq (d. 765) at about the same time its Sunni legal fiqh counterparts were being codified. It was distinguished from Sunni law "on matters regarding inheritance, religious taxes, commerce, and personal status."
Hanbali	"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 Ahmad Hanbal (d. 855 AD), follower of this school is known as Hanbalis. Others are Hanafis, Malakis and Shafi'is. The Hanbali is considered the hardest in terms of social and personal rules. ahiri is another known school developed by Daud ibn Khalaf (d. 883 AD). The Jafri Shia Islam school in Islamic jurisprudence was developed by Imam Ja'far al-Sadiq (d. 765) at about the same time its Sunni legal fiqh counterparts were being codified. It was distinguished from Sunni law "on matters regarding inheritance, religious taxes, commerce, and personal status."
Haram	(1) Unlawful, forbidden, prohibited
	(2) Forbidden according to shari’a.
	(3) Anything prohibited by the Shar¯ı´ah.
	(4) Unlawful in Islam. Activities which are explicitly prohibited by The Qur'an or the Sunnah. The prohibitions also includes professions, contracts and transactions as well as earnings.  When guidance is not clearly given in he Qur’an there are several other sources of law, for example, guidance can be sought from Fiqh, which means ‘understanding’ and is the science of jurisprudence: the science of human intelligence, debate and discussion. The concept of haram is one of the distinctive features of Islamic economics vis-a-vis Western economics where no such concept exists.  In Western economics, all activities are judged on the touchstone of economic utility.  In Islamic economics, other factors, mostly ethical and moral are also involved.  An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shari'ah. Opposite Halal.
Harus	Permissible act.
Hawalah	(1) Bill of exchange, promissory note, cheque or draft.
	(2) Lit. transfer; legally, an agreement by which a debtor is freed from a debt by another becoming responsible for it, or the transfer of a claim of a debt by shifting the responsibility from one person to another – contract of assignment of debt. It also refers to the document by which the transfer takes place, like a bill of exchange, promissory note, cheque or draft.
	(3) Lit. it means transfer; legally, it is an agreement by which a debtor is freed from a debt by another becoming responsible for a debt or the transfer of a claim of a debt by shifting the liability for payment from one person to another, such as a contract for assignment of debt. Thus the responsibility for payment shifts to another party. It also refers to the document by which the transfer or assignment takes place, such as a bill of exchange, promissory note, cheque or draft.The mechanism of Hawalah is used for settling accounts by book transfers without the need for physical transfer of cash.
Hesab al takaful	Takaful Ta'auwuni Account
Hibah	(1) Gift awarded by a bank without any commensurate exchange
	(2) Gift – to give something in permanent ownership to another without any consideration in exchange.
	(3) A gift. Tech: transfer of a determinate property (mal) without any material consideration. It may be something given on a voluntarily basis by a debtor to a creditor as a token of appreciation at the time of returning an interest-free loan. Islamic banks can use their discretion to make a payment by way of ‘gift’ to their customers on non-investment account balances and to attract more deposits for the bank. While such a ‘gift’ appears similar to interest, and may, in effect, have the same outcome, Hibah is a voluntary payment made (or not made) at the bank's own discretion, and is not guaranteed.
Hikmah	Rationale, Wisdom behind any course of action or injunction.
Hilah	(1) Ruses, tricks used in transactions to circumvent the basic prohibitions.
	(2) A forbidden structure used for the purpose of attaining a desired legal outcome, something done to deceive others. Using permissible or a combination of permissible means to reach forbidden ends. Tricks or ruses employed in structuring transactions to give the appearance that they are in compliance with the Shari’ah when the real intention is to circumvent the basic prohibitions. pl. Hiyal.
Hisbah	(1) An office which in traditional Islam supervised markets, provided municipal services and settled petty disputes.
	(2) A term used by the classical Muslim jurists to describe the function carried out by the state or appropriate Islamic authority to regulate the market place. It includes whatever steps may be needed in order to maintain a fair and orderly market place.
Hiwalah	Remittance involving a transfer of funds/debt from the depositor’s/ debtor’s account to the receiver’s/creditor’s account
Hiyal	(1) sing. Hila; Ruses, used in reference to crafty ways of circumventing the prohibition of riba.
	(2) ‘Permissions’ or legal manipulations, evasions.
Hudud	Punishments such as dismemberment and death by stoning.
Hukm	(See Hukum.)
Hukmi (Qabza)	Constructive possession; a situation in which the buyer has not taken the physical delivery of the commodity, yet the commodity has come into his risk and control and all the rights and liabilities are passed on to him, including the risk of its destruction.
Hukum	In Fiqh, the Shari'ah ruling associated with any action; rules, provisions and laws includes Allah's command's/norms/values for individual believer.
Husah	Lit. pebbles; A type of sale that was practiced by the Arabs in the Jahiliyyah in which the sale was determined by casting of pebbles. This practice was prohibited by Prophet Muhammad (pbuh) because of the uncertainty ( gharar) which characterised the contract which governed it.
Husnal Qadha	Gracious payment of loan/debt: repaying a loan in excess of the principal without a precondition; individuals’ discretion; not to be adopted as a system in which a creditor, lender or an investor has expectation of getting some reward on the debt.

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F

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Word	Meanings
Fasid	A voidable or defective contract (according to division of contracts with respect to legality as per Hanafi Fiqh) due to nonfulfilment of any condition required for valid contracts.
Fadl	Excess, additional, surplus, as in Takaful.
Fadl Allah	The bounties bestowed by the Almighty Allah.
Falah	(1) Success, to thrive. Technically, it implies success both in this world and in the Hereafter ( Akhirah).
	(2) Welfare in this world and the Hereafter; Falah means to thrive, to become happy or to have luck and success. Technically, it implies success both in this world and in the Akhirah (Hereafter). The Falah presumes belief in one God, the apostlehood of Prophet Muhammad (pbuh), Akhirah and conformity to the Shar¯ı´ah in behaviour.
Faqih	Jurist who gives rulings on various juristic issues in the light of the Qur’an and thesunnah. (pl. fuqaha)
Faraid	(1) Inheritance law
	(2) The section of Islamic law that deals with the distribution of the estate of a deceased persons among his/her heirs accordance with Allah's decree in the Qur'an and the Hadith.
Fasid	Voidable. A forbidden term in a contract, which consequently renders the contract invalid. A voidable or defective contract due to non-fulfillment of any condition required for valid contracts.
Fasid Contract	Invalid contract
Fatwa	(1) Religious opinions
	(2) Legal opinion, religious edict.
	(3) A religious decree or edict; plural Fat¯awa.
	(4) A religious opinion or decree, which can be either positive or negative.
	(5) A religious decree. A ruling made by a competent Shari'ah scholar on a particular issue, where fiqh (Islamic jurisprudence) is unclear. It is an opinion, and is not legally binding. It may address either a specific problem of interest to a particular person or a matter of public concern.
Fayed	Surplus, as in Takaful.
Fictitious Assets	An asset having no tangible existence and realisable value but is shown to exist often with the intention to derive some financial benefit when otherwise it would not be possible. For example, an asset provided as security to obtain a loan is fictitious (does not exist) if there is no source of repayment. Financial crises are caused by creating more and debt against fictitious assets saddling individuals, businesses and countries with debts that they are unable to repay. See Asset.
Fiqh	(1) Jurisprudence.
	(2) Islamic jurisprudence, the science of religious law, which is the interpretation of the Sacred Law, shari’a.
	(3) Islamic jurisprudence; the science of the Shar¯ı´ah. It is an important source of Islamic tenets.
	(4) Refers to the whole corpus of Islamic jurisprudence. In contrast to conventional law, fiqh covers all aspects of life - religious, political, social, commercial, and economic. Fiqh is based primarily on interpretations of the Qur’an and the Sunnah and secondary sources that are supported by the Qur'an and the Sunnah. Fiqh may also be understood as the jurists' understanding of the Shari'ah. There are four major schools of Islamic thought, the Hanafi, Shafi'i, Hanbali and Maliki.
Fiqh al Muamalat	(1) Commercial law
	(2) Rulings on transactions specific to commerce and finance.
	(3) Islamic commercial jurisprudence, jurisprudence of financial transactions or the rules of transacting in a  Shari'ah-compliant manner.
Fitrah	Law of nature.
Fuduli	A person who is neither guardian nor agent, or if he is agent, he transgresses the limits prescribed by the principal in respect of a contract.
Fulus	Coins of inferior metals.

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Word	Meanings
Eid al-fitr	Prayer ending Ramadan
Ekrar	Declaration, as in Takaful.
Equity	The value of property in an organisation greater than total debt held on it. Equity investments typically take the form of an owner's share in the business, and often, a share in the return, or profits. Equity investments carry greater risk than debt, but the potential for greater return should balance the risk.
Equity Participation	An ownership position in an organisation or project or venture taken through an investment. Returns on the investment are dependent on the profitability of the organisation or project.
Eshtirak	Contribution, as in Takaful.

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Word	Meanings
Daawa	Lit. Call; Missionary activities.
Dalil	A scientific argument based on reason.
Daman	Guarantee, security. Taking responsibility. Also see Kafalah.
Daman	Taking liability, responsibility – contract of guarantee; responsibility of entrepreneur/manager of a business.
Daman Khatar	Guarantee against the travel hazards.An arrangement of mutual assistance in which losses suffered by traders during journeys due to hazards were indemnified from jointly pooled funds.
Darura	Necessity, overriding necessity. Adopting a ruling, even one that may contravene a Shari’ah rule, when one is compelled by extreme necessity, usually life or death (Usually used for the “Doctrine of Necessity,” whereby something otherwise prohibited becomes temporarily permissible).
Darurah	(See Darura.)
Da'wah	Claim, as in Takaful.
Dayn	(1) Debt. A dayn comes into existence as the result of any contract or credit transaction.
	(2) Debt; goods of indeterminate category that can be used for payment of liabilities; a liability to pay which results from any credit transaction like purchase/sale on credit or due rentals in Ijarah (leasing). A Dayn comes into existence as a result of any other contract or credit transaction.
	(3) Debt. A Dayn comes into existence as a result of any other contract or credit transaction. It is incurred either by way of rent or sale or purchase or in any other way which leaves it as a debt to another. The lender should not impose on the borrower more than what is given on credit.
Debt	Usually refers to an amount owed for funds borrowed. The debt may be owed to an organisation's own reserves, individuals, banks, or other institutions. Generally, the debt is secured by a note, bond, mortgage, or other instrument that states repayment and interest provisions. The note, in turn, may be secured by a lien against property or other assets. Debts in different forms all imply intent to pay back the amount owed by a specific date as set out in the repayment terms.  .
Debt Service Reserve	Term used to refer to cash reserves set aside by a borrower, either by internal policy or lender covenant, to repay debt in the event that cash generated by operations is insufficient.
Deen	It refers to a complete code of life prescribed in Islam.
Default	A failure to discharge a duty. The term is most often used to describe the occurrence of an event that cuts short the rights or remedies of one of the parties to an agreement or legal dispute, for example, the failure of the mortgagor to pay a mortgage installment, or to comply with mortgage covenants.
Dham¯an Khatr al-Tariq	An arrangement of mutual assistance in which losses suffered by traders during journeys due to hazards on trade routes were indemnified from jointly pooled funds.
Dhimmah	Responsibility, term used in Takaful.
Diminishing Musharakah	(See Musharakah, Diminishing.)
Din	(See Deen.)
Dinar	Currency in the form of gold coins that was prevalent in the past.
Dinar	Currency in the form of gold coins that was used in the past. The term is still used in some Muslim countries, like Iraq.
Dirham	(1) Currency in the form of silver coins prevalent in the past.
	(2) Name of a currency unit, usually a silver coin, used in the past in several Muslim countries. The term is still used in some Muslim countries, such as Morocco and United Arab Emirates.
Diyah	Blood money
Due Diligence	Refers to the task of carefully confirming all critical assumptions and facts presented by a borrower. This includes verifying sources of income, accuracy of financial statements, value of assets that will serve as collateral, the tax status of the borrower and any other material facts presented by the borrower.
Dunya	This "world". Dunya literally means 'closer' or 'lower. Life in this world temporal world - and its earthly concerns and possessions.
Duyoon Haalah	Dayn / Debts that have become due or can be called back at any time.
Duyun Mu’ajjalah	Time of payment settled between the creditor and the debtor and the debt is not yet due.

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Word	Meanings
Capital	Broadly, all the money and other property of a corporation or other enterprise used in transacting its business.
Capital Markets	A financial market where debt or equity securities are traded by institutions and individuals; the market for trading long-termdebt instruments (those that mature in more than one year). Also used in a more general context to refer to the market for stocks, bonds, derivatives and other investments. Acapital market is made up of three majorparts: (1) stock market, (2) bond market, and (3) money market. It also works as anexchange for trading existing claims on capital in the form of shares. T he generic term for markets used to raise longer term funds from various investors.
Capitalisation	Long-term debt, preferred stock and net worth. The loan capital of a community development loan fund; includes that which has been borrowed from and is repayable to third parties as well as that which is earned or owned by the loan fund (i.e. "permanent capital").
Cash Flow Financing	Short-term loan providing additional cash to cover cash shortfalls in anticipation of revenue, such as the payment(s) of receivables.
Collateral	Assets pledged to secure the repayment of a loan .
Commodity Murabaha	(See Murabaha, commodity)
Commutative	Relating to, involving, or characterised by substitution, interchange, or exchange. Legal term in which one in which each of the contracting parties gives and, receives an equivalent. The contract of sale is of this kind. The seller gives the thing sold, and receives the price, which is the equivalent. The buyer gives the price and receives the thing sold, which is the equivalent.
Cost-plus  Financing	(See Murabaha.)
Covenant	An agreement or promise to do or not to do a particular thing; to enter into a formal agreement; a promise incidental to a deed or contract. The following are functional objectives guiding most covenants: full disclosure of information, preservation of net worth, maintenance of asset quality, maintenance of adequate cash flow, control of growth, control of management, assurance of legal existence and concept of going concern, provision for lender profit or program goals.
Current Asset	Assets that will normally be turned into cash within a year   .
Current Liability	Liability that will normally be repaid within a year
Current Ratio	Current assets divided by current liabilities -- a measure of liquidity. Generally, the higher the ratio, the greater the "cushion" between current obligations and a firm's ability to meet them.

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Word	Meanings
Bad Debt	A debt that is not collectible and is therefore worthless to the creditor. .
Bai	Stands for “sale” or contract of sale. It is often used as a prefix in referring to different sales-based modes of Islamic finance, such as Murabaha, Istisna’a, and Salam.
Bai	A comprehensive term that applies to sale transactions, exchange.
Bai ad Dayn	(1) Sale of debt or debt instruments.
	(2) The sale of debt or a liability at a discount or negotiated price.
	(3) Sale of tangible objects such as goods (as  opposed to sale of services or rights.
	(4) Sale of debt. According to a large majority of fuqaha’, debt cannot be sold for money, except at its face value, but can be sold for goods and services.
	(5) Debt financing − the provision of financial resources required for production, commerce and services by way of sale/purchase of trade documents and papers. Bai al-dayn is a short-term facility with a maturity of not more than a year. Only documents evidencing debts arising from bona fide commercial transactions can be traded.
Bai al Amanat	Fiduciary sales like murabaha and wadi'ah.
Bai al Arboon	(1) A sale of downpayment with the condition that if the buyer takes the commodity, the downpayment will become part of the selling price and if he does not purchase the commodity, the advance money will be forfeited.
	(2) A form of sales contract similar to an option, where only a small portion of the price is paid. The buyer will then hold an option for a specific length of time (days or months, but not more than one year) to either go through with the purchase or cancel the contract. If the buyer decides to go through with the purchase, he will than have to pay the rest of the price. If the buyer decides to walk out, then the portion of the price that has been paid is retained by the seller.
	(3) (See Arbun.)
Bai al Ghaib	Sale of absent or concealed goods (without knowing their features/specifications).
Bai al Gharar	(1) Trading in risk, where the Arabic word ghararis taken to mean "risk".
	(2) (See Gharar.)
Bai al Hasat	Sale where the subject matter depends on the fall of a stone or pebble; prohibited due to Gharar.
Bai al Inah	(1) A contract that involves the sale and buy back of assets by a seller.
	(2) Double sale by which the borrower and the lender sell and then resell an object between them, once for cash and then for a higher price on credit, with the net result of a loan with interest –prohibited.
	(3) A sale by one party at a higher price on deferred payment, and they then buy back at a lower price to realize immediate cash for the other party. This structure is normally practiced in Malaysia, but is questionable in some other Islamic finance markets, such as the Gulf Cooperation Council and South East Asia, as they consider it contrary to the Shari’a rulings.
	(4) Also termed as  Bai ah Inah. Buying an object for cash then selling it to the same party for a higher price whose payment is deferred so that the purchase and sale of the object serves as a ruse for lending on interest. At a later date, the bank will repurchase the asset and pay the client in cash terms. Similar to tawarruq however intawarruq a third party is involved as an intermediary.
	(5) Buying an object for cash then selling it to the same party for a higher price whose payment is deferred so that the purchase and sale of the object serves as a ruse for lending on interest. It equates to a double sale by which the borrower and the lender sell and then resell an object between them, once for cash and once for a higher price on credit, with the net result of a loan with interest. Used by some Islamic banks, it refers to selling of an asset to the customer through deferred payments. At a later date, the bank will repurchase the asset and pay the client in cash terms.  Thus, Bai al Inah comprises two agreements; in the first agreement, the bank sells an identified asset to the customer at an agreed price and the customer can complete the purchase of bank's asset by payment in installments over an agreed period; in the second agreement, the bank re-purchases the same asset from the customer at a lower price and on completion of the second transaction, the bank will pay the lump sum amount in immediate cash at the price agreed between them. The difference in the price is the bank's profit, which is determined in advance. This arrangement is prohibited by the majority of Shari’ah scholars as it also equates to a sale and buy-back arrangement. Also known as Bay-al Inah or Inah. Similar to tawarruq however, intawwaruq a third party is involved as an intermediary.
Bai al Inah Contract	Sale-and-buyback contract
Bai al Khiyar	(1) Option to rescind the sale.
	(2) Sale with an option of one party to rescind the contract within a specified time.
	(3) (See Khiyar.)
Bai al Kkali bil Kali	A sale in which both the delivery of the object  of sale and the payment of its price are delayed. It is similar to a modern forward  sale contract.
Bai al Majhul	A sale in which the object of sale or its price or the time of payment remains unknown and unspecified – lacking any material information.
Bai al Muajjal	(1) Deferred payment contract, where the bank /lender buys the assets on behalf of the business owner. The bank then sells the assets to the client at an agreed price, which will include a mark-up as the bank needs to make a profit. The business owner can pay the total balance at an agreed future date or pay by instalments over a pre-agreed period. This is similar to a murabaha contract since it is also a credit sale.
	(2) Lit. a credit sale or deferred payment contract. Technically, a financing technique adopted by Islamic banks, It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in installments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. The concept is the same as Bai Bithaman Ajil (BBA).
	(3) Lit. a credit sale. Technically, a financing technique adopted by Islamic banks; it is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in instalments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price, but generally it is higher than the spot price.
Bai al Muajjal Contract	Deferred-payment sale
Bai al Muallaq	Suspended sale – a sale transaction, the effectiveness of which is related to any future condition or action.
Bai al Mudaf	A sales contract in which delivery of both the commodity and the payment is deferred - for example forward sales in modern times. Such contracts are not permitted by the Shariah.
Bai al Muqayaza	Exchange of goods with goods is called barter.
Bai al Mutlaq	Conclude a sale without any option to rescind.
Bai al Muzayadah	(1) Sales by auction.
	(2) Sale by auction. Other names for this principle used by past Islamic jurists include bai al-fuqara, bai al-man kasadat bidha’atuhu, bai al-mahawij, and bai al-mafalis.
Bai as Sarf	Sale of gold, silver or other monetary units on both sides.
Bai an Naqdi	Buying and selling on a cash basis
Bai as Salam	(1) Pre-paid purchase.
	(2) Deferred-payment sale or forward sale contract (used primarily in agriculture)
	(3) This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be affected unless the goods are in existence at the time of the bargain. But this type of sale forms an exception to the general rule, provided the goods are defined and the date of delivery is fixed. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market.
	(4) A contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of the contract. According to normal rules of the Shar¯ı´ah, no sale can be executed unless the goods are in existence at the time of the bargain, but Salam sale forms an exception given by the holy Prophet himself to the general rule, provided the goods and their prices are defined and the date of delivery is fixed. It is necessary that the quality of the commodity intended to be purchased is fully specified, leaving no ambiguity leading to dispute. The objects of this sale are goods and not media of exchange like gold, silver or currencies, because these are regarded as monetary values, the exchange of which is covered under the rules of Bai‘ al Sarf, i.e. hand to hand without delay. Barring this, Bai‘ Salam covers almost everything which is capable of being definitely described as to quantity, quality and workmanship, subject to the fulfilment of other conditions for valid Salam.
	(5) (See Salam.)
Bai as Sarf	(See Sarf.)
Bai Baatel	(See Bai Batil.)
Bai Batil	Invalid sale – having no effect in respect of rights and liabilities of the parties.
Bai Bil Wafa	Sale with a right of the seller to repurchase (redeem) the property by refunding the purchase price – basically a pledge; treats the sold asset as collateral until the amount is paid back by the other party to sale; not permissible if the resale of the property to the original seller is made a condition for the initial sale.
Bai Bithaman Ajil (BBA)	(1) Another term used for Bai Mu'ajjal.
	(2) Deferred payment sale by instalments.
	(3) This contract refers to the sale of goods on a deferred payment basis. Equipment or goods requested by the client are bought by the bank, which subsequently sells the goods to the client an agreed price that includes the bank’s mark-up (profit). The client may be allowed to settle payment by instalments within a pre-agreed period, or in a lump sum. Similar to a murabaha contract, but with payment on a deferred basis.
	(4) This contract refers to the sale of goods on a deferred payment basis; a deferred payment sale.  Islamic banks use it as a mode of  financing for purchase and sale or deferred payment of consumer goods. Technically, this financing facility is based on the activities of buying and selling.   There is no interest charged. Equipment or goods required by the customer are purchased by the bank which subsequently sells the goods to the customer at an agreed higher price; payment is deferred and the customer is allowed to settle payment either by instalments or in a lump sum within a pre-agreed period. The deferred payment price which is the bank’s sale price includes a profit mark-up for the bank agreed by both parties.   Similar to a Murabaha contract, but with payment on a deferred basis known as Murabaha Muajjal.
Bai Bithaman Ajil Contract	Deferred-payment sale
Bai Contract	Sales/purchase contract
Bai Istijrar Contract	Supplier contract
Bai Istisna Contract	Order sale contract
Bai Murabaha	Sale at cost price plus a mutually agreed profit – bargaining on profit margin on the cost price. (See Murabaha)
Bai Musawamah	Sale without any reference to the cost price to the seller – bargaining on price.
Bai Tawliyah	Sale at cost price – to facilitate or serve others.
Bai Wadhiah	Sale with loss – at a price less than the cost price.
Bai Wafa	Buy-back, sale and repurchase, a contract with the condition that when the seller pays back the price of goods sold, the buyer returns the goods to the seller.
Bai Was Salaf	A conditional contract combining selling and lending, like one man saying to another: “I purchase your goods for such and such if you lend me such and such” – invalid.
Baiti Al Mal	Public treasury of an Islamic State.
Balance Sheet	Financial statement presenting measures of the assets, liabilities and owner's equity or net worth of business firm or nonprofit organization as of a specific moment in time. .
Barakah	Blessing.
Barnamaj	Catalogue or list of contents in a sale consignment.
Batil	Null and void. Invalid sale or contract. One that does not fulfil the conditions relating to offer and acceptance, subject matter or the consideration and possession or delivery of the subject matter or involves some contravention of the Shari'ah, such as the involvements of riba, gharar or qimar. Also termed as Aqd Batil and Bai Baatel. (Opp.Sahih.)
Batil Contract	Void contract
Bezant	Gold currency
Bidaa	Innovation.
Bridge Loan	Short-term loan to provide temporary financing until more permanent financing is available.
Buyoo al Amanat	Fiduciary sales like Murabaha, Tawliyah and Wadhi‘ah.

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Word	Meanings
Aakhira	Life in the Hereafter.
Aaqilah	Mutual Help, which was an arrangement of mutual help or indemnification customary in some tribes at the time of the Prophet Muhammad (pbuh). This is a foundation doctrine based on which Islamic insurance practices, known as Takaful, have been developed.
Adl	(1) Justice.
	(2) A general term which conveys the meaning of justice, equity and fairness.
Ahadith	Plural of Hadith, traditions of the holy Prophet of Islam describing his utterances, actions, instructions and actions of others (Companions) tacitly approved by him.
Ahad	One. Inherently one (God).
Ahd	Generally, a unilateral promise or an undertaking, although sometimes it also covers a bilateral obligation.
Ahkam	Pl. of Hukum.
Ain	Determinate property; property that is not Dayn; generally the commodities of material value in themselves; pl. Aayan.
Ajr	A payment or compensation such as commission, fees or wages charged for services.
Ajr al Mithl	Rent or wage to be decided by a judge or arbitrator.
Ajr al Musammah	Agreed rent or wage in Ijarah or Ujrah contracts.
Ajr un Kareem	A generous reward.
Akhlaq	(1) Matters for disciplining one’s self regarding relationships with others.
	(2) Ethical code
Al Adl	(See Adl.)
Al Ghurm bil Ghurm	Earning profit is legitimized only by risk-sharing and engaging in an economic venture. This provides the rationale and the principle of profit-sharing in Shirkah arrangements. Al Kharaj bil Daman has similar meaning: one can claim profit only if one is ready to take liability – to bear the business risk, if any.
	The principle that one is entitled to a gain only if one agrees to bear the responsibility for the loss. Earning profit is legitimised only by risk-sharing and engaging in an economic venture. This provides the rationale and the principle of profit-sharing in Shirkah(partnership) arrangements.
Al Kali bil Kali	Exchange of two things, both delayed, or exchange of delayed counter value for another delayed counter value – also termed Bai‘ al-Dayn bid-Dayn.
Al Ajr	(1) A commission, fees or wages levied for services.
	(2) Commission, fees or wages charged for services rendered or work done.
	(3) (See Ajr.)
Al Bai	(See Bai.)
Al Hisbah	The institution of ombudsman, a social regulatory body empowered to check imbalances in the market for the purpose of re-establishing a better semblance of market-driven exchanges in the light of the principles of justice.
Al Ihsan	(See Ihsan.)
Al Ijarah Thumma al Bai	An ijarah (leasing) contract combined with a bai (purchase) contract
Alim	(1) One who knows. (See Ulama.)
	(2) Learned man or religious scholar.
Al Kharaj bil Daman	Link of exposure to risk, one can claim profit only if one is ready to bear the business risk, if any. The principle in Islamic jurisprudence that entitlement to return or yield ( al-kharaj) is for the one who bears the liability ( daman) for something, say an asset, and one who does not bear the liability has no claim to the yield.
Allah	The name for God in Islam.  It is used by Arabic-speakers of all Abrahamic  faiths, including Christians and Jews. The concept of Allah, is the only real supreme being, all-powerful and all knowing Creator, Sustainer, Ordainer, and Judge of the universe. There is no plural, masculine or feminine form of this word in Arabic. This denotes the One True God, the Almighty Creator, Who is neither male nor female . Islam puts a great emphasis on the conceptualisation of God as strictly singular ( tawhid). God is unique (wahid) and inherently one ( ahad), all-merciful and omnipotent. Islam teaches that Allah is the same God worshiped by the members of other Abrahamic religions such as Christianity and Judaism.
Al Mal	(See Mal.)
Al Quran	(See Qur'an.)
Al Rahn	(See Rihn.)
Al Rahn	An arrangement where an asset is used as collateral for a debt, similar to pawn broking. In default, the asset can be sold to repay the debt.
Al Sar al Adl	The just price.
Al Sarf	(1) Sale of monetary value for monetary value – currency exchange. In Islamic law such exchange is regarded as “sale of price for price”, and each price is a consideration of the other; has to be simultaneously paid.
	(2) (See Sarf.)
Al Ujrah	Fee for safekeeping assets
Al Wadi‘ah	(1) A basis for safe-keeping of deposits (Am¯anah) on which no profit can be sought.
	(2) Resale of goods at a discount to the original cost.
	(3) Safekeeping.
	(4) (See Wadiah.)
Al Wakala	(1) Absolute power of attorney.
	(2) (See Wakalah.)
Al Wakala al Mutlaqa	Absolute power of attorney.
Amal salih	Virtuous act
Amanah	(1) Trust
	(2) Reliability or trustworthiness, an important value of Islamic society in mutual dealings. It also refers to deposits in trust. A person may hold property in trust for another, sometimes by implication of a contract.
	(3) Refers to deposit in trust. A person can hold a property in trust for another, sometimes by express contract and sometimes by implication of a contract. It entails the absence of liability for loss, except in breach of duty. Current accounts are regarded as Am¯abnah. If the bank gets authority to use current account funds in its business, Am¯anah transforms into a loan. As every loan has to be repaid, banks are liable to repay the full amounts of the current accounts, irrespective of their loss or profit.
	(4) Reliability, trustworthiness, loyalty, honesty. Technically, an important value of Islamic society in mutual dealings; it also refers to deposits in trust. A person may hold property in trust for another, it entails the absence of any liability for loss, except for breach of duty. By extension, the term can also be used to describe different financial or commercial activities such as deposit taking, custody or goods on consignment. Deposits in current accounts (usually non-interest bearing) with Islamic banks are regarded as Amanah. If the bank obtains authority to use the funds in the current accounts to invest in its business,Amanah transforms into a loan from the depositor to the bank and the bank is liable to repay the full amount in the current account, irrespective of profit or loss made by the bank.
Ameen	(1) Trustworthy, trustee – safeguarding others’ entrusted property as if it was his own; not liable in case of any damage to the trust property without any negligence on his part.
	(2) (See Amin.)
Amil	Lit. it means worker. One who performs a task, an agent. One who deserves compensation for performing a task, such as the mudarib (manager) in a mudarabah contract or a zakat collector.However, inFiqh it also refers to the working partner inmudarabah contract. Under this contract, one partner provides the capital and the other provides the labour who is called amilor mudarib.
Amin	One who holds honestly the trusts of other people; trustworthy.
Amwal	Pl. Mal; which means worldly possessions including both property and money (wealth).
Aqaid	Matters of belief and worship – rituals pertaining to the relationship between man and God.
Aqd	(1) Agreements
	(2) Lexically, conjunction or to tie; legally, synonymous with the word “contract” in modern law.
	(3) Contract, Agreement, Bond. Synonymous with the word "contract" in modern law.
Aqd Batil	(1) A void or invalid contract – one which does not fulfil the conditions relating to offer and acceptance, subject matter or the consideration and possession or delivery of the subject matter or involves some illegal external attributes like the involvement of Riba, Gharar or Qimar.
	(2) (See Batil.)
Aqd Ghair Lazim	(1) A contract in which any of the parties has a right to revoke it without the consent of the other.
	(2) A contract in which any one of the parties has a unilateral right to revoke it with the consent of the other(s).
Aqd Lazim	(1) A contract in which none of the parties has a unilateral right to revoke (without the consent of the other).
	(2) A contract in which none of the parties has a unilateral right to revoke it without the consent of the other(s).
Aqd Tabarru	(See Tabarru.)
Aqd al Bay	A contract of sale.
Aqd al Ijara	(See Ijarah.)
Aqd al Muawadah	A contract of exchange in which compensation is given against the goods or services received.
Aqd al Musharakah	(See Musharakah.)
Aqd al Qard	A loan contract. Also known as Qard.
Aqd al Wadia	(See Wadia.)
Aqidah	Belief, faith, creed
Aqilah	Kin or persons of relationship who share responsibility.
Aql	Intellectual reasoning, one of the sources of Shari’a rulings (see also: ijtihad)
Aquila	Mutual agreement or joint guarantee to spread the financial liability or risk of a member
Arboon	(See Arbun.)
Arbun	(1) Downpayment; an amount taken from the buyer as part of the price after execution of the sale agreement; the seller has the option to confiscate it if the buyer backs out and does not complete the purchase process.
	(2) A non-refundable deposit to secure the right to cancel or proceed with a sale during a certain period of time.
	(3) A non-refundable down payment or deposit paid by a buyer for the right to purchase goods at a certain time and certain price in future; if the right is exercised, it becomes part of the purchase price. If the buyer does not complete the purchase or backs out for any reason, the seller has the option to forfeit the deposit. Also known as Urboun and Bai al-Arbun. Also see Hamish Jiddiyah.
	(4) Gratuitous loan of objects. It means the loan of a particular piece of property, the substance of which is not consumed by its use, without anything taken in exchange. In other words, it is the gift of usufruct of a commodity that is not consumed on use. It is different from Qard, which is the loan of fungible objects which are consumed on use and in which the similar and not the same commodity has to be returned. It is also a virtuous act like Qard. The borrowed commodity is treated as a liability of the borrower, who is bound to return it to its owner.
Ariya	Loan, which means to give any non-fungible commodity to another for use, without taking any return for its use.
Assets	Anything of value which may be tangible or intangibe. Any interest in real or personal property which can be appropriated for the payment of debt.
Athman	Plural of Thaman – monetary units – medium of exchange used for payment of prices and liabilities.
Awqaf	(1) Pl. Waqf, meaning trust. (see Waqf.)
	(2) Religious endowments.
Ayah	(1) Verses in sura (sing. ayat)
	(2) A verse or passage in the Qur'an.
	(3) (See Ayat.)
Ayatollah	Honorific title given to leading Shia clerics in Iran. (Lit.sign of God).
Ayn	Monetary wealth. A tangible (physical) asset. Also, refers to currency or ready money. Ayn is often contrasted with Dayn.

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