• Relating to the sources of Islamic law, it is the customs and the usages of a particular society.

• Merchandise, stock-in-trade. Jurists apply this term in different connotations: (a)
sometimes it is applied to everything except cash; (b) sometimes it is applied to everything except cash, eatables, garments and immovable property; (c) sometimes it is applied to everything except cash, measurable, weighable, animals and immovable property.

• One-tenth. Tech: A tax on the agricultural production of lands levied only on Muslims at the rate of 10 per cent if the land is irrigated by rainfall and at the rate of 5 per cent on the artificially_ irrigated lands. Ushr is not levied, if there is no production. It is also known as Zakat al-ard. The Zakat is levied on moveable property if it remains in one's possession for one year, but the ushr is payable on each crop.

• The ushr is payable on the production of the land even if the owner is a minor or a lunatic. The ownership of land is not a condition for ushr because it is payable on waqflands as well as on the produce of the land being tilled under a contract of Muzara. It is levied on the gross production. The cost of the production is not accounted for prior to the assessment of the ushr. The ushr revenues are usually spent on those accounts on which the Zakat is spent.

• One-tenth. Tech: al-Usher was imposed on the merchants who came to Muslim lands from non-Muslim countries which had no treaty with Muslims. Eventually, al-usher were extended to all the caravans, whether for internal or external trade, and to Muslim and nonMuslim merchants.

• For a Muslim merchant, usher were the same as 2.5 per cent annual Zakat on merchandise. A Dhimmi had to pay double what a Muslim paid, whereas a merchant from a foreign country which had no relations with Muslims had to pay double what a Dhimmi paid. It used to be an important source of revenue for the Muslim state.

• Commission, Fees or Wages in return of services performance or efforts on assignment.

Al-Fard Al-Kifa
• Socially, collectively or obligatory duty to be performed such as marriage, funeral or mosque gathering. It can also be classified as the duties that an individual cannot perform and State take the responsibility as Tax Collecting, Road Building, Water Treatment, and Health Care etc.

• Any thing that is found lying upon the ground and takes away for the purpose of preserving it in the manner of a trust.


• To keep valuable items in trust of the owner of the item.

• Resale on discount from the original declared cost.

• Unconditional Power of Attorney

• Keeping valuable asset as collateral against debt.


• Safekeeping

Awkaf /Awqaf
• Institution for keeping unclaimed assets for the benefit of poor.

• Margin against the purchase or equity of buying party in Morabaha Financing as stake.

• Ahad: Decide • Amal: Act • Alam: Charity • Ameer: Head of

• Amarat: Wealthy • Ahasan: Blessings • Ashab: Followers of
Prophet (PBUH)

• Ashara: Quarterly • Adal: Justice

Bai' Al-Istijrar
• Supply contract or an agreement between buyer and seller for supplying agreed goods on regular basis and on agreed price with agreed mode of payment.

Bai Muajjal
• Deferred Payment Contract or Goods sale on credit through a financing mode in which seller allows the buyer to pay the price of a commodity either in lump sum or in pre-agreed installment within pre-agreed at a future date in a lump sum or in installments. The price of commodity is pre-agreed with inclusion of financier profit.

Bai al-Dayn
• Debt financing: Bai al-Dayn is a short-term facility with a maturity of not more than a year. Only documents support debts arising from bona fide commercial transactions can be traded.

Bai al Salaam
• Contract of sale of goods where the price is paid in advance and the goods are delivered in the future. • Pre-paid purchase

Bai Bithaman Ajil

• Deferred payment sale of goods on a deferred payment basis at a price, which includes a profit margin agreed to by both parties.

• Baitul Maal: Treasury or
House of Wealth

• Baliegh: • Bait:

Matured after reaching the age of 14
Acceptance of Authority

Dinar or Dirham

• It is a ancient currency introduce in the Arab State in an early period.

• A requirement, or an emergency situation that Sharia permits to preserve life at any means and assure the safety of an individual or the community.

• An interpretation to the matter that need the clarification in accordance to the Islamic Teaching which is given by the Islamic Scholar having academic qualification to issue such declaration.

• Duty

• Order or Degree by Judge or State.

• Islamic jurisprudence in accordance to the Islamic Shariah and an important part and the base of Islamic economics.

• Jurist qualified in Islamic law and Islamic Sharia according to the five leading teachers: Maalik, Abu-Hanifa, Shafi'e, Ibn-Hanbal and Jaafar Siddiq.

• Ambiguity, vulnerability, chance or risk. Like any sale or purchase of commodity which is not present at spot or a sale that involve risk or hazard of one party of the transaction. Also an act of dishonesty by ignorance by one or more parties of a contract..

• The following are some examples:
• • 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 Selling goods without proper description, such as shop owner selling clothes with unspecified sizes Selling goods without specifying the price, such as selling at the 'going price'

• Making a contract conditional on an unknown event, such as when my friend arrives if the time is not specified Selling goods on the basis of false description Selling goods without allowing the buyer the properly examine the goods

• •

• The sayings of Prophet Muhammad, May Peace Be upon Him as an explanation of Holy Quran.

• Permissible in accordance to Holy Quran. An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shariah.

• Hajj means pilgrimage to Mecca and other holy places and performed at a specific period, one week from the 8th day of the Islamic month of Zil-Hajj to the 13th day of that month in the Islamic lunar calendar.

Hannefi laws
• Islamic school of law founded by Imam Abu Hanifa. Followers of this school are known as Hannefi .

• Bill of exchange, Promissory Note, Cheque or Draft. Technically it is kind of a negovciable instrument or act in which a debtor passes on the responsibility of payment of his debt to a third party who owes the former a debt. Thus the responsibility of payment is ultimately shifted to a third party.

• Hawala is also an act for settling international accounts, by transferring funds. The term was also used historically in public finance during the Abbasids period to refer to cases where the state treasury could not meet the claims presented to it and it directed the claimants to occupy a certain region for a specified period of time and procure their claims themselves by taxing the people.

• This method was also known as 'Tasabbub'. The taxes collected and transmitted to the central treasury were known as 'Mahmul', while those assigned to the claimants were known as 'Musabbub'.

• Unlawful transactions, goods or acts which are not permissible under Islamic law.

• Gift awarded voluntarily in return for loan given.

• Letting equipment or asset on lease. Leasing is also a lawful method of earning income according to Islamic law. In this method, a real assets such a machine, a car, a ship, a house, can be leased by one person (lessor) to the other (lessee) for a specific period against a specific price. The benefit and cost of the each party are to be clearly spelled out in the contract so as any ambiguity (Gharar) may be avoided.

Ijarah Thumma Al-Bai'

• Leasing and subsequently purchase in two contracts undertaken and subsequently as follows: • 1. Ijarah contract (leasing/renting); and • 2. Bai' contract (purchase)

Ijarah Thumma Al-Bai'

• In Ijarah contract hirer leases the goods from the owner at an agreed rental over a specified period. Upon expiry of the leasing period, the hirer enters into a Bai' contract to purchase the goods from the owner at an agreed price.

Ijarah wa Iqtina
• Lease to Purchase same as Ijarah without committing to buying the equipment at the end of the lease period. Fees previously paid constitute part of the purchase price. This type of lease to purchase agreement is commonly used for home financing.

• Lease Purchase like in Ijarah, except that the client is committed to purchase the equipment at the end of the rental period. It is pre-agreed that at the end of the lease period the client will purchase the equipment at an agreed price from the bank, with rental fees paid to date, forming part of the price.

• Effort, hard work or thoroughness. Technically making an effort to derive or formulate a rule of law on the basis of evidence found in the Islamic teaching.

• Belief, Faith or Convection

• A contract of getting hold of of goods by specification or order where the price is paid progressively in accordance with the progress of a job. An example would be for the purchase of a house to be constructed, payments are made to the developer or builder according to the stage of work completed.

• Gathering

• predetermined price for performing any service. Technically applied in the model of Islamic banking on Bank charges and commission which are taking to mean to be Ju’alal by the jurists and regard as lawful.

• It is a guarantee provided by a person to the owner of goods who had placed his goods with a third party. The guarantor and the 3rd party must meet any subsequent claim by the owner for his goods.

• Gambling or playing games of chance with the intention of making an easy, unearned profit; a form of Gharar.

• Trust Financing, Skill financing, Financing keeping the experience and reputation of professional. Modarib (Professional) is managing trustee while Rab El-Maal (Financier) responsibility is to invest the funds In case both shall agree on pre-agreed accrued and precosting profitability and relative share of any profits.

Monfa Al Sharikat

• Profit-sharing between parties of financial agreement by dividing profit on a predetermined ratio. Losses are borne by the provider of capital.

• Professional who make efforts in a Modaraba contract or person or party who acts as entrepreneur.

• An economic business deal or an act between two or more parties for a specific purpose.

• Mode of Financing for trading purpose. A contract of sale in which the seller declares his cost and profit of the commodity that the Morahib need and request.

• User and consumer of goods received under Morabaha financing mode.

• Mode of Financing which is an agreement under which the Financier provides funds which are come together with the funds of the business enterprise and others. All providers of capital are entitled to participate in the management but not necessarily required to do so. The profit is distributed among the partners in predetermined ratios, while the loss is borne by each partner in proportion to his contribution.

• Professional who manage the transaction under Musharaka Mode of Financing Agreement.

• Financing Agreement for Irrigation purpose or to develop the irrigation system or irrigation to farms and agricultural fields.

• Financing It is a contract in which one person agrees to till the land of the other person in return for a part of the produce of the land.

• Exemption limit for the payment of Zakat. It is different for different types of wealth.

Qard al Hasana

• A virtuous loan. A loan with the stipulation to return the principal sum in the future without any increase.

Qard Hassan
• An interest-free loan given for either welfare purposes or for fulfilling short-term funding requirements. The borrower is only obligated to repay back the principal amount of the loan.

Qard Hasan
• An interest-free loan given mainly for welfare purposes. The borrower is only required to pay back the amount borrowed.

Qard ul Hassan

• benevolent loan A loan or debt extended which is absolutely free from interest. The borrower is only required to repay the principal amount borrowed, but he may pay an additional amount at his absolute discretion, as a token of appreciation.

• Gambling. Technically, an agreement in which possession of a property is contingent upon the occurrence of an uncertain event. By implication it applies to those agreements in which there is a definite loss for one party and definite gain for the other without specifying which party will gain and which party will lose.

• Thinking & Discussing

• Skill financing. Ancient name of Modaraba

• Qanoon:

Law • Qanoon-e-Riasat: Law of State • Qanoon-e-Qudrat: Law of the Nature • Qanoon-e-Shahadat: Law of Witness

• Qanoon-e-Wirasat: Law of

• Qanoon-e-Milkiat: Law of

• Qanoon-e-Haq:

Right of Law

• Person who invests the capital in Financial Contract.

• Owner of capital

Rehen • Collateral

• An excess or increase. Technically, an increase in principal of a loan transaction or in exchange of a commodity, accrues to the owner (lender) without giving an equivalent counter value or recompense in return to the other party. It covers interest both on commercial and consumer loans.

• This term literally means an increase or addition. Technically it denotes any increase or advantage obtained by the lender as a condition of the loan. Any riskfree or "guaranteed" rate of return on a loan or investment is riba. Riba, in all forms, is prohibited in Islam. In conventional terms, riba and "interest" are used interchangeably.

• Literally, an increase or addition. Technically it denotes in a loan transaction any increase or advantage obtained by the lender as a condition of the loan. In a commodity exchange it denotes any disparity in the quantity or time of delivery.

• A sale transaction in which a commodity is exchanged for the same commodity but unequal in amount and the delivery of at least one commodity is postponed. To avoid riba-albuyu, the exchange of commodities from both sides should be equal and instant. Riba-albuyu was prohibited by the prophet Mohammad to forestall riba (interest) from creeping into the economy from the back door.

Riba al-fadl
• Usury of trade. It is an alternative term for Riba alBuyu.

Riba al-Diyun
• Usury of debt

Riba al-Nasia
• Increment on the principal of a 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 at the end of this period the amount originally lent together with an increment in consideration of the lender having granted him time to pay. The increment was known as riba alNasia. It was in vogue in Arabia in the days of the Prophet Muhammad.

• Banking instrument of the early Muslim period. It was a payment order to draw money from the bank.

• Rasad: Logistic for Goods • Rah-gu-zari: Octori or Tool Tax. • Riasat: State
• Riasat Al Falai: Welfare Stare

• Raiees: • Rukun: • Sadaqah:

Rich or Prominent Person Member Charitable giving.

• The way of Allah as shown by the Qur'an and the Sunnah of the Prophet Muhammad. The term is used to refer to the Islamic law.

• Islamic jurisprudence, based upon defined sources and methods of determining precedent. The primary source is the Quran. In order, the secondary sources include hadith (Sunnah), consensus, logical deduction and analogy, and past practice. Literally, a path to pure water.

Sharia Supervisory Board

• The scholars responsible for insuring that products and operating procedures comply with the Islamic principles of Sharia.

• Islamic common law derived from 3 sources: the Quran; the Hadith (sayings of the Prophet Muhammad); and the Sunnah (practice and traditions of the Prophet Muhammad).

• A contract between two or more persons who launch a business or financial enterprise to make profit.

• Musharaka

• A type of banking instrument used for the delegation of credit during the Muslim period, especially the Abbasids period. • It was used to collect taxes, disburse government dues and transfer funds by merchants. • It was the most important banking instrument used by traveler merchants.

• In some cases Suftajah were payable at a future fixed date and in other cases they were payable on sight. • Suftajah is distinct from the modem bill of exchange in some respects. • Firstly, a sum of money transferred by Suftajah 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, Suftajah 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'. • Third, a Suftajah could be endorsed. The Arabs had been using endorsements (Hawala) since the days of the Prophet Muhammad.

Sallallahu Aalaihi Wwassallam

• (SAW) This is a salutation used by Muslims whenever referring to the Prophet Muhammad. It is abbreviated as 'SAW'. It means 'peace and blessings of God be upon him'.

• Tawan: • Taawon: • Tehrir: • Tijarat: • Tajir:

Tax or Penalty Cooperation Written Document Trading Trader

• 1. Mutual support which is the basis of the concept of Insurance or solidarity among Muslims. • 2. 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.

• Brotherhood, fraternity. Tech: The interrelationships of Muslims in the society are regulated by a sense of ukhuwah. • It is the basis of mutual benevolence in the society. • Some of the economic relations are also governed by ukhuwah.

• Grant of land or property by state or by an individual free of cost, along with rights of ownership. • AI-umra are unencumbered grants, which the descendants of the grantee inherit as any other property.

• But in certain cases the donor may condition its use by the donee during the latter's life-time. • In such a case the gift is inherited by the donor and his heirs and is not passed on to the heirs of the donee.

• A weight of varying magnitude. Tech: Equivalent to 40 dirhams or 119.07 grams. • It is known as uqiyah al-fiddah in distinction to uqiyah al-ashya, which is equal to 7.5 dirhams or 23.782 grams.

• A safe custody contract between the depositor (customer) and the custodian (bank).

• Nominating another person to act. A situation where a person nominates or appoints another person to act on his behalf. • In Letter of Credit or Wakalah Contract The bank acts as the agent of the customer.

• Remittance. Transfer of funds/debt from the depositor's/debtor's account to the receiver's/ creditor's account where a commission may be charged for such service.

• The Waqf property can neither be sold nor inherited or donated to anyone. Awqaf consists of religious foundations set up for the benefit of the poor.

Al-Yamiin al-ghamuus
• An oath which may land one in disaster. • A false oath made in order to appropriate the property of someone else unlawfully. • Such an oath is called al-ghamus, since it takes its bearer to the fire of Hell.

• Obligation which is prescribed by Islam on all persons having wealth above an exemption limit at a rate fixed by the Shariah.

Zakat al-Fitr
• Payable by every Muslim able to pay, at the end of Ramadan (the month of fasting).

Zakat al-Nafs
• Poll Tax.

Zakat al Maal
• An annual rates 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.

• Zamin: • Zamanat: • Zahir:

Guarantor Guarantee Clarity

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