A 'yaan Plural of ayn.

Goods or specific thing

A mal plural of amal (work) that is required in a partnership or based on which a part nership is formed

'Abd slave; servant; abd madhun is a slave who has been authorized by his master to h andle business on his behalf

Abddan sharikat al-abddan

Adhaab / azab Punishment, especially the punishment for failing to obey Allah Taala. see the H oly Quran

Adl / adil Justice and equity. A fundamental value governing all social behaviour and formi ng the basis of all socialdealings and legal framework

Afdal The best

AH After Hijra. Hijra means emigration. The Islamic calendar startsfrom the day the Holy Prophet Muhammad (S.A.W.), emigrated from Mekkah to Madinah, in 622 A.D.

Ahadeeth also spelled Ahadith Sayings and traditions of the Holy Prophet Muhammad (S.A.W.). Singular: Hadith.

'Ahd

covenant; here it is used in the context of dhimmah (personality), which is consi dered by the jurists a covenant with the Creator.

Ahkam Plural of hukm (rule); the ahkam of a contract (legal effects) as distinguished f rom its huquq (rights of performance of the contract) the Hanna s make a distincti on between the two.

Ahl ar-ray Means people of opinion. It is refers to people that are consulted on Islamic ma tters. These people are highly learned in Islam.

Ahliyah Legal capacity

Ahliyat al-ada' Legal capacity for execution

Ahliyat al-wujub Legal capacity for the acquisition of rights and obligations.

Ahlul Kitab Wa Sunnah Literally means "the People of the Book (the Holy Quran) and the sayings and tra ditions, i.e. the Sunnah of Prophet Muhammad (S.A.W.)".

Ajal period; duration for which delivery is delayed.

Ajanib plural of ajnabi (stranger); those who are not co-owners in a property.

Ajnabi

stranger; see ajanib.

Ajr al-mithl / Ajrul Mithl reasonable wages; wages to which a person would be entitled under normal circums tances or customary in the community.

Al Fard al Kifayah Socially obligatory duties. Literally, a collective duty of Muslims, the dischar ge of which by some of them absolves the rest of its performance, such as funera l prayers. Technically it covers such functions which the community fails to or cannot perform and hence are taken over by the state, such as the provision of u tilities, building of roads, bridges and canals etc.

Al Hisba System of accountability in an Islamic state in order to check unlawful practice s.

Al-Aamilu-Alaz-Zakah Zakah collector.

Alaihis Salaam / A.S. May Allahs peace be upon him. A phrase which is usually read after the name of a prophet other than Prophet Muhammad (S.A.W.) is mentioned.

Alim An Islamic religious scholar. Plural: Ulamaa.

Al-khardj bi al-damdn a principle based upon a tradition; it is perhaps, the most influential principl e in Islamic law, applies to contracts, damages, and even crimes.

Allah The Name of the Creator of the Universe and all that it contains according to Is lam. Derives from the word "Ilah" which means "the One deserving all worship", t he One to Whom all hearts submit in love, fear, reverence, desire, trust and sin cerity, and to Whom all limbs submit in all forms of worship such as prayers, su

pplications, sacrifices, invocations, etc.

Al-Mofaviza General Partnership (one of the types of partnership under Musharakah)

Al-sharikah dhat al-mas 'uliyah al-mahdudah the name for a private limited company in Egyptian law

Al-wadia / Al-wadi'ah This refers to deposits in trust, in which a person may hold property in trust f or another, sometimes by implication of a contract.

Al-wakala al mutlaqa Resale of goods with a discount on the original stated cost. Absolute power of a ttorney.

Al-Qard al-Hassan Loans fixed for a definite period of time without interest or profit sharing.

'Amal work; conduct.

Amana / Amanah Lit: reliability, trustworthiness, loyalty, honesty; Technically, an important v alue of Islamic society in mutual dealings; anything, which is in possession of a person who is not the owner of it for safekeeping. In case of unintended loss t o the thing, he is not obliged to pay compensation.

Ameen / Amin Custodian or guardian; trustee.

Amir Amir is used in Islam to mean leader or commander.

Amwal Wealth; in business context wealth that is contributed as capital in a partnersh ip; Plural: mal.

'Aqd ghayr 'Azim a contract that is terminable at the will of the parties, like partnership.

'Aqd Sahih A legal contract.

'Aqd agreement, contract.

Aqeeda Literally means belief. In Islamic terminology, it means articles of faith

'Aaqilah People who have ethnical relationship or relationship of cooperation and help wit h an unintentional killer. They are legally obliged to bear blood money along wit h the killer.

'Aql reason; fourth interest secured by the shariah and recognized as a purpose of th e law; the existence of aql is an essential condition for ahliyat al-add.

Ardh / Ardhqw land; property that includes goods, slaves and even real estate; according to mo st jurists land is not eligible for entitlement to profit as compared to other th ings that are: wealth, labor, credit-worthiness qiyas (analogy); a principle of law; principal amount in a debt; see A s al-mal.

Athaman mutlaqah

absolute currencies; the term is usually applied to dinars and dirhams.

Awkaf/ Awqaf A religious foundation set up for the benefit of the poor; property voluntarily transferred to a charity or trust so that it is use for public benefits.

Ayah A verse of the Holy Quran. Literally means "a sign". Plural: Ayaat.

'Ayn The corpus or substance of a thing. A thing present as distinguished from one tha t is absents at the time of the contract. In Hanafi terminology, a thing is to b e determined through weight or measure during a transaction of sale.

Badal substitute; substitute compensation.

Bai al Dayn bi addayn the exchange of a debt for a debt (prohibited based on a tradition and unanimous ly by the jurists based on ijma).

Bai al-salam This term refers to advance payment for goods which are to be delivered later. N ormally, no sale can be effected unless the goods are in existence at the time o f the bargain. But this type of sale forms an exception to the general rule prov ided the goods are defined and the date of delivery is fixed. The objects of thi s type of sale are mainly tangible things but exclude gold or silver as these ar e regarded as monetary values. Barring these, bai salam covers almost all things which are capable of being definitely described as to quantity, quality and wor kmanship. 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 also applied to a mode of financing adopted by Islamic banks. It is usually applied in the ag ricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market. This kind of sale (Salam) also used nowadays as a mode of fianancing that is also called Parallel Salam .

Bai Bithaman Ajil (Al) / Al-Bay-Bithaman Ajil (BBA) financing In modern Islamic banking, the term refers to a buying and selling transaction b

etween the bank (or financial institution) and the customer, whereby the former buys a property (or an asset, e.g. a house) at the prevailing market price and sells it to the customer at a mark-up price where payments are made by installme nts over a period of time agreed upon by both parties. The profit earned by the bank is legitimate from the Shariah point of view since the transaction is based on sales contract rather than a loan contract. Any predetermined profit arising from the loan is prohibited in Islam as it amounts to Riba.

Bai Muajjal / Bay Muajjal Sale based on deferred payment, either in a lump sum or instalments. 1.A sale in which the parties agree that the payment of price shall be deferred is called a Bai Muajjal. 2.Bai Muajjal is valid if the date of payment is fixed in an unamb iguous manner. 3.The date of payment can be fixed either with reference to a par ticular date, or by specifying a period, like three months, but it cannot be fix ed with reference to a future event where the exact date is unknown or uncertain . If the time of payment is unknown or uncertain, the sale is void. 4.If a parti cular period is fixed for payment, like one month, it will be deemed to commence from the time of delivery, unless the parties have agreed otherwise. 5.The defe rred price may be more than the cash price, but it must be fixed at the time of sale. 6.Once the price is fixed, it cannot be decreased if it was paid earlier, nor can it be increased in the case of default. 7.In order to ensure the buyer p ays the installments promptly, the buyer may be asked to promise that in the cas e of default, he will donate some specified amount for a charitable purpose. In such cases, the seller may receive such an amount from the buyer, not as part of his income, but to use it for charitable purposes on behalf of the buyer. 8.If the commodity is sold on installment, the seller may put a condition on the buye r that if he fails to pay any installment on its due date, the remaining install ments will become due immediately. 9.In order to secure the payment, the seller may ask the buyer to furnish a security whether in the form of a mortgage, a lie n or a charge on any of his existing assets. 10.The buyer can also be asked to s ign a promissory note or a Bill of Exchange, but the note or the bill cannot be sold to a third party at a price different from its face value.

Bai / Bay Sale; Commonly used as a prefix in referring to different types of sales: Muajja l, Murabahah, Tawliyah and Wadiah; comprehensive term that applies to sale as we ll as many other transactions that are not strictly referred to as sales in posi tive law; bilateral contract; exchange.

Baligh mature person; person who has attained puberty, the outward sign of majority and discretion, in the absence of which jurists determines different ages for the p resumption of puberty.

Batil Nullity; void, void ab intio.

Baytul Mal The treasury of an Islamic state.

Buda ah goods given to another for trading without giving wages or sharing profits (like a shopkeeper leaving his shop with another shopkeeper during his absence).

Bulugh the attainment of puberty; see baligh.

Butlan see batil. D.C. A/C Demand Credit Account.

Dain/ Dayn Loan, due, receivable, debt.

Dhaman al- amal liability underlying a partnership formed on the basis of labor, where the partne r is liable for performing the contract or completing the work accepted by eithe r partner.

Dhaman al-mal liability for the debts of the partnership; the usual form of liability underlyi ng all partnerships, especially one formed based on wealth.

Dhaman al-talaf liability for damaging or destroying property accepted by the partnership for val ue-added work.

Dhaman al-thaman liability underlying a partnership formed on the basis of credit-worthiness wher

e each partner is liable, jointly and severally, for paying the prince of goods bought on credit.

Dar ul-harb Enemy territory not under the jurisdiction of a Muslim state.

Dar ul-Islam Area under the jurisdiction of the Muslim state.

Dharb fil-ardh Receivables; the term does not apply to cash loans for which the word qard is us ed; see qard.

Dharurah Necessity. A principle used for permitting forbidden things in case of duress or extreme hardship.

Dhimam see sharikat al-dhimam.

Diminishing Musharkah This kind of Musharkah used as a mode of financing where a partner can redeem hi s share / share having a put option or call option.

Dirham tijariyah Currency accepted by the traders as valid for commercial transactions amongst th em although it did not meet the conditions laid down for currency.

Dirham Name of a unit of currency, usually a silver coin, used in the past in several M uslim countries and still used in some Muslim countries, such as Morocco and Uni ted Arab Emirates.

Diyah

Blood money of an unintentional killing or injuries Equity Distribute according to proportions in a specific contract. Fadhal Bounties of God, excess; used for Riba, which is excess in the exchange of two c ounter-values, whether determined through weight or measure or realized through delay in the delivery of one of the counter-values.

Fadl (Riba) A type of interest. Taking something of superior quality in exchange for the sam e kind of thing of poorer quality. Allah Subhana wa Taala has strictly prohibite d any kind of Riba and has warned of severe punishment for those who have any as sociation with it. See the Holy Qur an, Surah Al-Baqara (2): 275-280

Fai Spoils of war that Muslims acquire from the enemy without actual fighting.

Faidah Benefit. In investment context it means return on investment.

Falas Bankcrupt

Faqeeh / Faqih Jurist; an Islamic scholar who can give an authoritative legal opinion or judgem ent.

Faqir A poor person

Fard Ain An action, which is obligatory on every Muslim.

Fardh Kifayah

Religious obligation for the fulfillment of which whole society is responsible. However, if it is fulfilled by some member(s) of the society, others become free of this responsibility.

Fard Obligatory. An act which is obligatory on Muslims.

Fasid ijarah the hukm (rule) for a vitiated mudarabah, muzaraah or musaqah.

Fasid vitiated; irregular; unenforceable; used in the sense of voidable in the positiv e law, but a contract is voidable at the option of the parties, while the fasid contract can become valid only if the offending condition is removed.

Faskh rescission.

Fatwa / Fatwah A religioius decree; a legal verdict given on a religious basis. The sources on which a fatwa is based are the Holy Quran, Sahih Bukhari and Muslim, and all oth er authenticated Ahadeeth. Plural: Fatawa.

Fay Spoils of war that Muslims acquire from the enemy without actual fighting.

Fidyah Compensation for missing or wrongly practising necessary acts of worship. Fidyah usually takes the form of donating money or foodstuff, or sacrificing an animal .

Fiqh Muslim jurisprudence; it covers all aspects of life, religious, political, socia l or economic. In addition to religious observances (prayer, fasting, zakat and pilgrimage) it covers family law, inheritance, social obligations, commerce, cri

minal law, constitutional law and international relations, including war. The wh ole corpus of fiqh is based primarily on the Quran and the Sunnah and secondaril y on ijma and ijtihad.

Fulus plural of fals (copper coin).

Fuqaha' (singular, faqih}: Jurists who give opinion on various issues in the light of th e Quran and the Sunnah and who have thereby led to the development of Fiqh.

Ghanima Spoils of war acquired from enemy after fighting during a holy war (Jihad).

Gharar Uncertainty, hazard, chance or risk, ambiguity and uncertainty in transactions. Technically, the sale of something which is not present at hand; or the sale of something where the consequences or outcome is not known. It can also be a sale involving risk or hazard in which one does not know whether it will come to be o r not, such as fish in water or a bird in the air; or an event where assurance o r non-assurance is subject to chance and thus not known to parties of a transac tion. Can also mean uncertainty or a hazard that is likely to lead to a dispute in a contract.

Gharim A person in debt; debtor unable to pay the debt from his wealth.

Ghasb usurpation; abduction.

Hadith (plural, ahddith): A report on the saying, deed or tacit approval of the Prophet , peace be on him.

Hadith-Qudsi A saying of Allah Taala narrated by Prophet Muhammad (S.A.W.), that is not a par t of the Holy Quran.

Hajar Al-aswad (Al) The Black Stone, a stone which is said to have fallen from heaven, set into one corner of the Kaabah in Mekkah by Prophet Ibrahim (Abraham) (A.S.), which pilgri ms, in imitation of Prophet Muhammad, (S.A.W.), kiss while performing the Hajj or Umrah.

Hajar interdiction, usually for safah (prodigality).

Hajj Hajj means pilgrimage to Mecca and 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 lifetime. There is a specific period for Hajj, nam ely one week from the 8th day of the Islamic month of Dhul Hijjah to the 13th da y of that month in the Islamic lunar calendar.

Hajj at-Tamattu (interrupted) Umrah followed by Hajj, but taking off the Ihram in between these two stages.

Hajj al-Qiran (combined) Umrah then Hajj without taking off the Ihram.

Hajj al-Ifrad (single) Hajj without Umrah.

Halal / Halaal Things/acts lawful in Islamic law; Permissible. The concept of halal has spiritu al overtones. In Islam there are activities, professions, contracts and transact ions which are explicitly prohibited (haram) by the Quran or the Sunnah. Barring them, all other activities, professions, contracts, and transactions etc. are h alal. This is one of the distinctive features of Islamic economics vis-a-vis Wes tern economics where no such concept exists. In Western economics, all activitie s are judged on the touchstone of economic utility. In Islamic economics, other

factors, mostly spiritual and moral are also involved. An activity may be econom ically sound but may not be allowed in the Islamic society if it is not permitte d by the Shariah.

Hamil surety; the term is used by Hanbali jurists for kafil.

Hanafi / Hanfi Islamic school of law founded by Imam Abu Hanifa. Followers of this school are k nown as the Hanafis.

Hanifite laws Islamic school of law founded by Imam Abu Hanifa. Followers of this school are k nown as Hanafis.

Haq Legal right.

Haram An act or product which is unlawful or prohibited in Islam.

Harikat amal partnership in which participation by the partners is based on labor or skill, b ut the partnership has to be of the type inan or mufdwadah.

Hawala Endorsement; assignment; avail; Lit: bill of exchange, promissory note, cheque o r draft. Technically, a debtor passes on the responsibility of payment of his de bt to a third party who owes the former a debt. Thus the responsibility of payme nt is ultimately shifted to a third party. Hawala is a mechanism for settling in ternational accounts, by book transfers. This obviates, to a large extent, the n ecessity of physical transfer of cash. The term was also used historically in pu blic finance during the Abbaside period to refer to cases where the state treasu ry could not meet the claims presented to it and it directed the claimants to oc cupy a certain region for a specified period of time and procure their claims th emselves by taxing the people. This method was also known as "Tasabbub". The tax es collected and transmitted to the central treasury were known as "Mahmul", whi le those assigned to the claimants were known as "Musabbub".

Heelah legal device.

Hibah gift.

Hijri Name of the Islamic lunar calendar. It took its name from the early Muslims wh o migrated from Mekkah to Madinah, and commences from the date of the Prophet M uhammads (S.A.W.) Hijra, which he made with Abu Bakr as-Siddiq (A.S.), in 622AC. Often abbreviated to A.H. (After Hijra). The months of the Islamic calendar are:1.Muharram. 2.Safar. 3.Rabii al-Awal. 4.Rabii al-Akhira. 5.Jumada al-Awal. 6 .Jumada al-Akhira. 7.Rajab. 8.Shaban. 9.Ramadan. 10.Shawal. 11.Dhul Qida. 12.Dhu l Hijjah

Hima Keeping people away from a land which was earlier treated as usable by all so as to restrict all outward benefits such as herbage, water and hunting to state us e.

Hiyal plural of heelah (legal device).

Hizim binding; binding contract.

Hudud The boundary between what is Halal (lawful) and what is Haram (unlawful), set b y Allah. Whoever transgresses these limits may be punished or forgiven by Allah.

Hujjah legal proof or authority.

Hujjaj

Pilgrims. Persons who have been on the pilgrimage to Mekkah during the Hajj sea son in the month of Dhul Hijjah. Singular: Haji = a male pilgrim, Hajah = a fem ale pilgrim.

Hukm / Hukum Verdict; rule; command; prescription; the hukm of a contract is a term for the l egal effects of the contract.

Hukman Constructively; legally, though not actually.

Huquq Rights; lawful cliams; Plural of haq.

I arah lending utensils and non-fungibles.

Ibahah permissibility.

IFB Interest Free Banks

Ifrad (Hajj al) "Single Hajj". Performing Hajj without performing the Umrah.

Ihram The state in which one is prohibited from doing certain things which are lawful at other times. Umrah and Hajj are performed in such a state.

Ihya al-Mawat

Reviving of unowned wasteland. One who revives such land becomes its owner.

Ihya

al-ardh

reviving barren lands.

Ijara/ijarah 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. It also refers to a mode of financing adopted by Islamic banks. It is an arrangement under which an Islam ic bank leases equipment, a building or other facility to a client against an ag reed rental. The rent is so fixed that the bank gets back its original investmen t plus a profit on it.

Ijarah wa iqtina Contract of renting, hiring or leasing. This term refers to a mode of financing adopted by Islamic banks. It is a contract under which the Islamic bank financ es equipment, a building or other facility for the client against an agreed rent al 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 manne r that the bank gets back its principal sum along with some profit, which is us ually determined in advance.

Ijma' Consensus of opinion of Muslim jurists on a specific matter; consensus of the ju rists on any issues of fiqh after the death of the Prophet, peace is on him. See also fiqh.

Ijma sukuti consensus where some jurists give tacit approval to the rule pronounced by other s.

Ijtehad / Ijtihad Lit: effort, exertion, industry, diligence. Technically, endeavour of a jurist t o derive or formulate a rule of law on the basis of evidence found in the source s; scholarly effort through which a jurist/scholar derives Islamic law on the ba sis of Quran and Sunnah.

Ikhtilat

mixing of shares so that they can no longer be separated.

Iktinaz Hoarding wealth without fulfilling legal obligations on it.

Imam Leader of the congregational prayer; also used for the founders of different sch ools of Muslim jurisprudence or other eminent jurists and also for the prominent descendents of All ibn Abi Talib and distinguished Shiah theologians. In ahddit h it has also been used to refer to the ruler.

'Inan khass the inan partnership that is formed for a particular project or for trading in a particular commodity or in which the agency granted to the partners is restrict ed.

'Inan rein of an animal; type of partnership; see sharikat al-inan.

Infaq Free-of-cost lending of an animal for riding or loading.

Inqilab conversion; revolution; conversion of mufawadah into inan.

Intifaq Granting of concessions relating to real estate e.g. the right of passage and ri ght to place a beam on the wall of the neighbor, etc.

Intiha end; termination; termination or dissolution of a partnership.

Iqalah

negotiated rescission.

Iqta' Granting of ownership or usufruct rights over state land by the state to individ uals in recognition of their services for the sake of Islam.

Irtihan pledging; mortgaging.

Ishtirak equivocally; participation; partnership.

Istidanah Raising or building up credit through credit purchases. It however does not a pply to the raising of cash loans.

Isnad The chain of transmission of a tradition.

Isqat The extinction of a right.

Istidanah raising or building up credit through credit purchases; does not apply to the ra ising of cash loans; see istiqrad.

Istihqaq al-ribh entitlement to profit; basis for entitlement to profit.

Istihsan principle according to which the law is based upon a general principle of the la w in preference to a strict analogy pertaining to the issue, the principle is us

ed by the Hanafis as well as the Malicious.

Istiqradh the raising of cash loans for business purposes, declared batil by al-Sarakhsi a s it is against the principle of prohibition of Riba.

Istisna a / Istisna This is a kind of Sale where a commodity is transacted before it comes into exis tance. It means: To order a manufacturer to manufacture a specific commodity for the purchaser. If the manufacturer under takes to manufacture the goods for him with material from the manufacturer, the transaction of Istisna a comes into exis tence. But it is necessary for the validity of istisna that the price is fixed wit h the consent of the parties and that necessary specification of the commodity ( intended to be manufactured) is fully settled between them. This kind of Sale al so is used as a mode of financing which also called Parallel Istisna a .

'Iwadh Compensation or counter-value.

Ja iz permissible; permissible contract.

Jihalah uncertainty; uncertainty in a contract that may lead to a later dispute; see gha rar.

Jahiliyyah The period in Arabia before the advent of Muhammad, peace be on him.

Jihad Holy war; struggle in the way of Allah.

Jizya A tax imposed on non-Muslims who are under Muslim country.

Joalah / Joaalah The undertaking of one party (the Jael, bank or employer) to pay a specified amo unt of money to another party in return for rendering a specified service in ac cordance with the terms of contract.

Ji'ala Lit: stipulated price for performing any service. Technically applied in the mod el of Islamic banking by some bank charges and commission have been interpreted to be juala by the jurists and thus considered lawful.

Kaabah The cube-shaped stone building whose foundations were built by angels and compl eted by Prophet Ibrahim (Abraham) and his son, the Prophet Ismael (A.S), in Mek kah. It was rebuilt with the help of Prophet Muhammad (S.A.W.). It is the focal point towards which all Muslims face when praying.

Kafalah bi al-thaman Surety for paying the price or sum if unpaid by the person originally liable.

Kafalah binnafs bail; surety for producing the body of the person wanted.

Kafil surety; person providing the surety; guarantor.

Kala' Grass, herbage and plants which grow on their own.

Khalt mixing of shares; see ikhtilat.

Khamr wine from grape juice.

Khiraj Tax on land of non-Muslim subjects of an Islamic state; revenue from land.

Kharij produce.

Khiyarat plural of khiyar (option).

Khums A 20 per cent levy. It is applicable to spoils of war, mines and wealth burned i n land that has no owner.

Khiyar al Izin contract terminable at the will of either party. contract terminable at the will of either party.

Kira rent for land, permitted by Malik ibn Anas. Ma un Free-of-cost lending of domestic utensils, professional instruments and other thi ngs of ordinary needs.

Mabrur A Hajj that is accepted by Allah because of its perfection in both inward inten tion and outward observation of the traditions of Prophet Muhammad (S.A.W.)

Madinah A city in Saudia Arabia, often called Madinaal-Munawarra - the Illuminated, or t he EnlightenedCity - where the revelation of the Quran was completed, and in w hich Prophet

Mahjoor

A person who is prevented or restrained to do business by law or Shariah.

Mahram A man whom a woman can never marry because her close relation with him (e.g. fat her, brother, uncle, son, etc.). Her husband is also her Mahram.

Maiser Gambling. Literally means getting something too easily.

Majhool Unknown; uncertain.

Makruh Abominable; reprehensible; disapproved.

Mal Wealth

Manafi' Plural of manfa'ah (benefits; usufruct; profits; utility).

Manafa'ah See manafi'

Maniha Granting of usufruct of a productive asset to a needy person for a specific peri od.

Mazru' The crop to be cultivated.

Mazru'ah Land given out by way of muzdra'ah.

Milk mushtarak Co-ownership; joint ownership.

Milk Ownership; property.

Milkiyah Ownership.

Mithli Fungible; things sold by weight or measure, and for which one quantity or measur e is a substitute for another.

Modharabah A contract between Financier and Working partner. A profit and loss sharing cont ract in which one party provides capital and the other party manages the enterpr ise. In ease of loss the provider of capital bears the financial loss while the worker loses his labor. In case of profit both parties share it in agreed propor tions. An agreement between two or more persons whereby one or more of them prov ide finance, while the others provide entrepreneur ship and management to carry on any business venture whether trade, industry or service, with the objective o f earning profits. They share the profit in an agreed proportion. The loss is bo rne only by the financier's in proportion to their share in total capital. See a lso sahib al-mal and mudarib.

Mu'amalah Transaction; agreement; term used for the agreement concluded by the Prophet wit h the people of Khaybar

Mu'ayyan Ascertained; determined; commodity ascertained through weight or measure for pur poses of sale.

Mu'ajjal See bay al-mu'ajjal.

Mubah Things/acts permissible in Islamic law; permissible.

Mubashir Person who commits an act personally and of his own volition rather than through another person.

Mudabbar A slave whom his master has declared to be free upon the master's death.

Mudharaba / Mudarabah The term refers to a form of business contract in which one party brings capital and the other personal effort. The proportionate share in profit is determined by mutual agreement. But the loss, if any, is borne only by the owner of the cap ital, in which case the entrepreneur gets nothing for his labour. The financier is known as "rab-al-maal" and the entrepreneur as "mudarib". As a financing tech nique adopted by Islamic banks, it is a contract in which all the capital is pro vided by the Islamic bank while the business is managed by the other party. The profit is shared in pre-agreed ratios, and loss, if any, unless caused by neglig ence or violation of terms of the contract by the "mudarib" is borne by the Isla mic bank. The bank passes on this loss to the depositors.

Mu'amalah Transaction

Mudharib A working partner; the partner who provides entrepreneur ship and management in a mudarabah agreement as distinct from the sahib al-mal who provides the finance .

Mufawadhah A basic contract of partnership based on wakalah and kafalah that requires full commitment from the partners and to achieve this purpose tries to maintain equal ity in the capital, labor, liability and legal capacity and also declares each p

artner to be a surety for the other it is converted into the 'inan partnership i f such equality is disturbed.

Muhaqalah Sale of un-harvested crop. (Sale contract of this kind is not permissible in Isl am).

Mukatab A slave with whom his master has concluded the contract of kitabah by virtue of which the slave buys his freedom and agrees to pay for it in installments.

Mukhabarah Sharecropping contract in which the landowner reserves crop of a particular area for himself. (Sharecropping contract of this kind is not permissible in Islam); another name for the contract of musaqah derived from the transaction with the Jews of Khaybar.

Muqaradhah Another name for mudharabah used by the Malikis; see also qirad.

Muqtadha 'aqd al- 'inan Implied contract of 'inan; conditions implied by the mere use of the word 'inan in the contract of partnership.

Murabaha Lit: Sale on profit; Cost plus profit, sale at stated cost price and mark-up, sa le at a specified profit margin. The term is, however, now used to refer to a sa le agreement whereby the seller purchases the goods desired by the buyer and sel ls them at an agreed marked-up price, the payment being settled within an agreed time frame, either in installments or lump sum. The seller undertakes all the m anagement needed for the purchase and also bears the risk for the goods until th ey have been delivered to the buyer. See also bay' al-mu'ajjal. This has been ad opted as a mode of financing by a number of Islamic banks. As a financing techni que, it involves a request by the client to the bank to purchase a certain item for him. The bank does that for a definite profit over the cost which is settled in advance. Some people have questioned the legality of this financing techniqu e because of its similarity to Riba or interest.

Musahamah

In Egyptian law it is the name for a corporation or for a public limited company .

Musaqah / Musaqat Contract for the watering of trees between the owner of land and a worker on the condition of sharing the produce; leasing fruit garden on fruit-sharing basis.

Musahamah In Egyptian law it is the name for a corporation or for a public limited company .

Musha' A share that is undivided and completely mixed up with the shares of the other p artners, that is, it is to be found in each particle of the joint property.

Musharkah The term refers to a financing technique adopted by Islamic banks. It is an agre ement under which the Islamic bank provides funds which are mingled with the fun ds 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 prof it is distributed among the partners in pre-determined ratios, while the loss is bome by each partner in proportion to his contribution. see sharikah.

Mutaba'ah Demand; demand by a creditor for the satisfaction of debts from the dealing part ner or from the other partners.

Muzara'ah Lit: Economic transaction; Sharecropping contract. Technically, contract for the cultivation of land between the owner of the land and the worker with the condi tion of sharing the produce.

Nasi a by way of nasiah, that is, with a delay in the delivery of one or both counter-v alues in a contract of exchange (bay).

Nass

text; word or text with a single meaning; text from the work of a jurist.

Nisa (Riba al) A type of interest. Taking interest on loaned money. An act which Haram. See the Holy Quran, Al-Baqara (2):275-280 and Aaliimran(3):13O.

Nisab A threshold of wealth of which any excess is subject to Zakah.

Nizam institution; term used in Saudi law for the corporation, in place of the usual t erm sharikah, in Arab law.

Nostro Our Correspondent Account with others, owner is not known.

Nubzah beverage made from dates; mead of dates. P.B.U.H. These letters are abbreviations for the phrase Peace Be Upon Him which is the translation of the Arabic expression Alaihis Salam or A.S., which is an expres sion that is said when the name of a prophet is mentioned. This expression is wi dely used by English speaking Muslims. It is to be noticed here that this expre ssion does not give the full meaning of "Salla Allahu Alaihi Wa Sallam". Theref ore it is recommended that people do not use (p.b.u.h.) after the name of prop het Muhammad (S.A.W.); they should use "Salla Allahu Alaihi Wa Sallam" instead, or they may use the abbreviated form of (S.A.W.) in writing.

Parallel Istisna a See Istisna a.

Parallel Salam See Bai Salam.

Pari Passu

Simultaneously and equally.

Phaasid see fasid.

Qardh Hasan A loan extended without interest; gracious loan without interest in which the be nefit to be derived is gifted by the owner to the beneficiary without this chari table act, the use of the money for a period would be considered an unjustified e xcess transferred to the beneficiary also called Ribaal-nasiah.

Qardh A loan given for a good cause in the name of Allah, in hopes of repayment or re ward in the Hereafter; debt.

Qarn al-Manazil The Miqat of the pilgrims travelling through Najd, in Arabia (from the east).

Qiraadh another name given by the Malilkis to the contract of mudarabah, from the word q ard.

Qiran (Hajj Al) Combined Hajj. Performing the Umrah, followed by the Hajj, without taking off t he Ihram.

Qiyas Lit: Analogy; syllogism. Technically: Analogy through which Islamic law is deriv ed from a textual injunction for a given non-textual matter.

Quadaa Paying in a debt.

Qubul acceptance.

Quirat gold, coin used during the time of Holy Prophet PBUH

Quran The Holy book containing the actual words of Allah revealed to the Prophet Muham mad (peace be upon him). This Holy Book of the Muslims consisting of the revelat ions made by God to the Prophet Muhammad, peace be on him, during his Prophet ho od of about 23 years. The Quran lays down the fundamentals of the Islamic faith, including beliefs and all aspects of the Muslim way of life. These are suppleme nted or further elaborated by the Sunnah. The Quran consists of 30 parts (ajza), 114 chapters (surahs}, and 6,666 verses (ayahs). There are a number of translat ions of the Quran by both Muslims and non-Muslims. The translations by Abdullah Yusuf Ali and Muhammad Marmaduke Pickthall, both Muslims, and by A. J. Arberry a re the most popular. In all references to the Quran in the text (e.g., 30: 41), the first number refers to the surah and the second to the ayah or verse. Many c ommentries (Tafseer) of the Holy Quran had been written in many languages. Ahkam ul Quran, Maariful Quran, Jalalain etc are among the most famous ones.

Ra's al-mal capital; principal amount invested; capital invested in Mudarabah Musharkah.

Rabb al-ardh owner of land, owner of the land in Musaqah/Musaqat and Muzara ah contracts.

Rabb al-maal investor; owner of capital; a person who invests in Mudarabah / Musharkah. See a lso sahib al-mal.

Radd bi-al-'ayb return of goods after a sale due to defects in the goods.

Raghabah Property, which belongs to all people. Neither state nor individuals can prevent

others from its lawful use.

Rahn Pledge or mortgage.

Riba Riba literally means increase, addition, expansion or growth. It is, however, no t every increase, or growth, which has been prohibited by Islam. In the Shariah, Riba technically refers to the premium that must be paid without any considerat ion. According to the jurists of Islam this definition covers the two types of R iba, namely Riba Al Fadhl and Riba Al Naseah. Example 1of Riba: If A sells 100 $ to B with 110 $. The premium of 10 $ is witho ut any consideration or compensation. Therefore this amount of 10 $ will be Riba . Example 2 of Riba: If A lends 100 $ to B (a borrower) with a condition that B sh all return him 110$ after one month. In this case the premium paid that must be paid by the borrower to the lender along with the price is Riba. Because the pre mium of 10 $ is without any consideration.

Riba aI-Fadl An extension of Riba to trade, because while trade is allowed, not everything is permitted in trade. The prohibition of Ribaal-fadl closes all back doors to Rib a through trade. unlawful excess in the exchange of two counter-values where the excess is measurable through weight or measure. According to some Ahadith (Sayi ngs of the Holy Prophet) if six things i.e. gold, silver, wheat, barley, dates a nd salt are exchanged against themselves, they should be spot and be equal and b een specified. If these conditions are not found, this transaction will become R iba Al Fadhl.

Riba al' Nasiah Literally means increase or addition of debt and it refers to the premium that m ust be paid by the borrower to the lender along with the principal amount as a c ondition for the loan or an extension in its maturity." It is thus equivalent to interest. the addition of the premium which is paid to the lender in return for his waiting as a condition for the loan and is technically the same as interest .

Raibahh Is from rayb which literally means "doubt or suspicion and refers to the income which has the semblance of Riba or which raises doubts in the mind about its rig htfulness. It covers all income derived from injustice to or exploitation of, ot

hers.

Rikaz Ancient wealth found hurried in land whose

Rukn element; part of an act without which the act is not complete or valid; essentia l ingredient or element of a contract; singular of Arkan. S.A.W. These letters are abbreviations for the words "Salla Allahu Alaihi Wa Sallam" , which means : may the blessing and the peace of Allah be upon him. When the name of Prophet Muhammad is mentioned, a Muslim is to respect him and invoke thi s statement of peace upon him.

Sadaqa / Sadaqah Anything given away in charity in the name of Allah.

Sadaqah al-Fitr A compulsory levy after the month of fasting (Ramadan). Every Nisab-holder has t o give to the poor one saa (21/2 kg.) of commonly used grain for himself and eac h one of his dependents.

Safa and Marwa Two small hills in Makkah, in Al-Haram as-Shareef (The Grand Masjid) to the eas t. It is an essential part of an Umrah and the Hajj to walk seven times between the two places, quickening ones step briefly between the two hills. This is ca lled Sai. See Holy Quran, Al-Baqara (2).

Sahib al-Mal (plural, Ashab al-mal): The financier; in the mudarabah form of partnership agre ement, the sahib al-mal (also, rabb al-mal) provides the finance while the mudar ib provides the entrepreneur ship and management. There can be many ashab al-mal and midribs in a given muddrabah agreement. See also muddrabah, mudarib.

Sai The act of going back and forth seven times between Safa and Marwa which is don e during the Hajj or the Umra.

Sak Pl. Sukook, Check, certificate of debt, certificates of investment.

Salam See Bai al salam.

Samsarah Brokrage, agency, business of commisson. See Simsar.

Sarf contract for the exchange of gold, silver, and currencies whether the currency o r commodity exchanged is the same from both sides or is different, that is, whet her dinars are exchanged with dinars or dinars are exchanged with dirhams.

Shakhsiyah i'itbariyah juristic person; artificial personality; corporate personality.

Shari ah Islamic Jurisprudence. Divine law consisting of Quran and Sunnah and on justific ation.

Sharik partner.

Sharikah al-wujuh partnership based on credit-worthiness of the partners in which the ratio of pro fit and loss is based on the liability borne, but the partnership has to be of th e type inan or mufawadah.

Sharikah 'ammah general partnership; a partnership in which each partner is a general attorney f or the other partners; a partnership that permits trading in all types of goods.

Sharikah khassah special partnership; partnership for a single venture or for trading in a particu lar item; partnership in which each partner is a special attorney of the other p artners.

Sharikah Musahamah in Egyptian law it is the name for a corporation or for a public limited company.

Sharikah partnership; in Egyptian law the term is used for joint-stock companies and corp orations as well, but is qualified with an adjective to indicate its nature: thu s, sharikah musahamah for a public limited company or a corporation whose capita l has been subscribed to by the general public.

Sharikat al- 'inan a basic contract of partnership based on agency in which participation may eithe r be on the basis of wealth or labor or credit-worthiness, and in which equality of contribution or legal capacity is not necessary.

Sharikat al-abdan another name for sharikat al-amal.

Sharikat al-amwal a partnership in which participation is based on the contribution of wealth by a ll partners, but the partnership has to be of the type indn or mufdwadah.

Sharikat al-ibahah common rights of individuals to gather possesses and own free commodities.

Sharikat al-jabr mandatory co-ownership created by an act of law, like inheritance.

Sharikat al-mafalis a partnership between persons whose assets have been reduced to copper coins and who have to buy on the basis of credit-worthiness; see sharikat al-wujuh.

Sharikat al-mal see sharikat al-amwal.

Sharikat al-milk co-ownership. Sharikat al-mudarabah: see mudarabah.

Sharikat al-taqabbul partnership for the acceptance of work, which is the same thing as a partnership based on labor or skill.

Sharikat al-dhimam a term used by the Malikis to indicate a situation where two or more persons are buying goods on credit it is different from the Hanafi sharikat al-wujuh insofar as it requires the physical presence of all the partners at the time of purchas e.

Shira

bi al-nasi'ah

a credit-purchase.

Shirb The right of irrigation.

Shirikat al- 'aqd a partnership created through contract as opposed to co-ownership that may be th e result of a joint purchase or agreement or it may result from inheritance or fr om some other legal situation.

Shirkah Another form of the term sharikah. Partnership between two or more persons where by, unlike mudarabah, all of them have a share in finance as well as entrepreneu rship and management, though not necessarily equally. See Appendix II for detail s.

Shirkat al-'amal see sharikat at-amal.

Shirkat See Musharikah

Shuf ah preemption.

Shuff'ah

The right of preemption for a person who is his neighbor or who is his partner i n water.

Shukuk / Sukook Check, certificate of debt, certificates of investment; plural of Shak

Shurut conditions; the name given to the art of conveyancing in Islamic law.

Sighah form of the contract.

Simsar Broker, agent like travel agent or estate agent. See Samsarah.

Sunnah Any saying of Prophet Muhammad (peace be upon him) or his act or any act of his companion endorsed by him. After the Quran, the Sunnah is the most important sour ce of the Islamic faith and refers essentially to the Prophets example as indica ted by his practise of the faith. The only way to know the Sunnah is through the collection of Ahddith .

Surah A chapter of the Quran. There are 114 surahs of varying lengths in the Quran. In all references to the Quran in the text (e.g. 30: 41), the first number refers to the surah and the second to the ay ah or verse.

T.C. A/C Time Credit Account

Ta yin ascertainment of the goods sold through weight or measure.

Tabarru' act of charity.

Tafwid delegation.

Tahjir Earmarking a piece of wasteland that has no owner by an individual in order to r ehabilitate it. (This establishes the right of ownership on such land).

Takaful Islamic Insurance. A scheme of mutual support that provides insurance to indivi duals against hazards of falling into unexpected and dire need.

Takhrij derivation; a methodology practised by the faqih, and that is based upon reasoni ng from principles.

Takhsis restriction; restriction of the meaning of a text.

Tameen Another name of Takaful (Islamic insurance). See Takaful.

Tamlik Transferring ownership.

Tamyiz Discretion; sense of discriminating between right and wrong evident in the behav

ior of a minor.

Taqabbul al- 'amal Acceptance of work by either partner in a partnership based on labor.

Taqva Piety, Purety.

Tarjih Preference of one legal evidence over another in the derivation of the rules of law.

Tasarruf Act; right to transact; right of disposal of property.

Tawliyah Sale at cost without any profit for the seller.

Tawqit Limiting duration of contract or another legal act.

Tijarah Sale & Agency based financing facility for Customers who sell Finished Goods on Credit basis. This facility enables Customers to sell their Finished Goods stock , meet their working capital requirements and enjoy the benefits of Cash sales.

Ulamaa Plural of Alim. The people of knowledge from amongst hat they know and do what they say. the Muslims who act on w

Ummah

Refers to the whole Muslim community, irrespective of colour, race, language or nationality, which carry no weight in Islam.

Umrah al-Qada The fulfilled Umrah - the Umrah which the Prophet performed in the seventh year after Hijrah which he intended to do in the sixth year but which the Quraysh un believers had not allowed him to complete.

Umrah A pilgrimage to Mekkah, but not during the Hajj period. It Lesser Pilgrimage". is also called "the

Urbun earnest money.

'Urf usage; custom.

Urn al-shurut conveyancing; drafting of legal documents.

'Urudh Pl. of Ardh: property that includes goods, slaves and even real estate.

Ushr Ten per cent (in some cases five per cent) of agricultural produce payable by a Muslim as a part of his religious obligation, like Zakat, mainly for the benefit of the poor and the needy.

Venture Inventory / Property risked contract.

Venture Capital See Mudharbah Wadhee'ah Sale at a loss.

Wadi'ah contract of deposit; bailment.

Waijdb / Wajib Compulsory, obligation as distinguished from wujub (duty).

Wakalah 'ammah general agency.

Wakalah khassah special agency.

Wakalah qasirah restricted agency.

Wakalah agency.

Wakil agent.

Wali guardian.

Waqf Endowment. A charitable trust in the name of Allah, usually in perpetuity, and usually for the purposes of establishing the Deen of Islam, teaching useful know ledge, feeding the poor or treating the sick.

Wasiyah Will (according to Islamic law a person cannot bequeath more than one third of h is total inheritance nor can he bequeath in favour of his heirs).

Wilayah guardianship.

Wilayat al-istidanah authority granted by one partner to another to buy on credit beyond the limit of the capital of the partnership. Yadribuna fi al-ard journeying through the earth seeking the bounty of Allah. Zakah / Zakat compulsories levy on every Muslim who has wealth greater than the amount of Nisa b. The amount payable by a Muslim on his net worth as a part of his religious ob ligations, mainly for the benefit of the poor and the needy. See also ushr.

Zakah al-Fitr A small obligatory head-tax imposed on every Muslim who has the means for him self and his dependants. It is paid once yearly at the end of Ramadan before Ei d al-Fitr.

Zakah Al-Mal The Muslims wealth tax: One must pay 2.5% of ones yearly savings above a certai n amount to the poor and needy Muslims. The Zakah is compulsory on all Muslims who have saved(at least) the equivalent of 85g of 24 carat gold at the time when the annual Zakah payment is due.

Zakatul Huboob Zakah of grain/corn.

Zakatul Madan Zakah of minerals.

Zakatur Rikaaz Zakah of treasure/precious stones.

Zakatu-rid Tijaarah Zakah of profits of merchandise.

Zar' seed; crop to be sown.

Zulm A comprehensive term used to refer to all forms of inequity, injustice, exploita tion, oppression and wrongdoing whereby a person either deprives others of their rights or does not fulfil his obligations towards them.

Zimmah equivalent of legal personality in positive law; receptacle for the capacity for acquisition; see ahd.