Relating to the law of kharaj and ushr, it includes immovable property and all other allied forms of property such as minerals, treasure trove and fruits on trees, etc.


Legal contract implying an enforceable act involving a bilateral declaration, namely, the offer (ijab) and the acceptance (qabul). Or a contract of obligation by which party transfer to the other the property of something for other than simple usage or pleasure. The plural is uqud.

Al-Bai’ al-fasidn

An agreement of sale which is lawful in its substance but unlawful in respect of its description. The substance of the agreement refers to proposal, acceptance, the buyer and the seller (al-\’aqidan) and the article of sale. The description refers to characteristics other than the substance, such as the price of the article of sale. If an agreement of sale for a definite article is concluded by proposal and acceptance but the price is not settled, the agreement would be fasid although it is enforceable (munaqad) so far as its substance is concerned.


A monetary unit. Tech: Gold coin weighing one mithqal, equivalent to 4.25 grams.

Al-Ghabn Al-Fahish

Excessive overcharging or over-pricing. Tech: Used for exorbitant or exploitative rate of profit.


Lit: 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.

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. There are several types of gharar, all of which are haram. 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.

Al-Ghunm Bi Al-ghurm

One is entitled to a gain if one agrees to bear the responsibility for the loss. The rationale of the principle of no profit-sharing without risk-sharing is that earning profit is legitimized by engaging in an economic venture and thereby contributing to the economy.

Arbun or Aurboon

See Urbun

Bai al-arabun

It means deposit of an amount of wealth or money by an expected buyer to a seller, by a tenant to a landlord, or by a leaseholder to a lessor, provided that if the buyer, tenant, or leaseholder comes back before the given deadline and accomplishes the transaction, the deposited amount or `arabun would be counted as part of the price of the sold material or portion of the rent or lease. But if the intended buyer, tenant, or leaseholder refrains from accomplishment of the transaction, he would loose his right to get the deposited wealth back and it would be the property of the seller, landlord, or lessor. The modern day options contracts in the stock exchange are covered by bai a/-urban.


Sale of definite goods or property with the free consent of parties for a definite price. It involves proposal (ijab) and acceptance (qabul).It has many types.

Bai’ ‘ala Bai’

Attempts of a third person to sell his produce while the sale deal is in the process of being concluded between two persons. The intention of the third person is to upset the bargain. This is done usually by quoting a lower rate or pointing out defects in the goods being sold by the other seller.

Bai’ al ghubn

The sale of the commodity with higher price than its price in excessive and overcharging, or buy the commodity lesser than its price.

Bai’ al muatah

A sales contract whereby the buyer picks up the goods and the seller accepts the price without any explicit bargain. It is also termed as bai al ta’ati.

Bai’ al-’inah

A contract of sale where a person sells an article on credit and then buys back at a lesser price for cash. Example: A asks a loan of $10 from B. B, instead of asking for interest on this loan applies a contrivance. He sells an article to A for $12 on credit and then buys back from him the same article for cash at $10.

Bai’ al-dayn bil dayn

(Sometimes referred to as “Bai’ al-kali’ bil kali”) A person agrees to sell a commodity to be delivered later for a price which he already owes to the intending buyer. Thus both the price as well as the product is in the form of debts. Some instances of Bai’ al-dayn bil-dayn are illustrated as follows: A owes B RM1,000 payable in six months. Upon expiry of six months B asks A to give him a ton of wheat in exchange to be delivered in one year.

Bai’ al-fuduli

An agreement of sale concluded by someone on the property of another without the permission of the latter.

Bai’ al-gharar

To sell a thing which one does not have in one’s possession nor does one expect to bring it under one’s control, such as fish in the river or birds in the air. Possession is one of the basic conditions for a valid contract of sale. One cannot sell a thing which is not in one’s possession; it involves risk for the buyer. Bai al-gharar is also a general term for all such sale deals which do not specify the commodity of sale or price or time of sale or where the ability of the seller to deliver the commodity is absent.

Bai’ al-istijrar

A sales contract in which a person agrees to pay in lump sum in advance and receives the commodities gradually in instilment.

Bai’ al-istisna’

A contract of sale in which a supplier (craftsman or manufacturer) is asked to supply goods of definite specifications at agreed rates, place and time of delivery.

Bai’ al-kali bil kali’

A credit sale, the most common form of which is a deferred sale in which on the date of the discharge of the debt the debtor seeks extension with the promise to pay something in addition. In fact the amount of debt is sold to the debtor for some profit. What is meant by this is, a man’s buying a thing on credit for a certain period and when the period of payment comes and he does not find anything to pay, he says to the creditor: sell it to me on credit for a further period for something additional. On this the creditor sells it to him. It may also refer to a man who pays money for wheat or the like, to be given at a certain time and when the time comes the debtor says, ‘I do not have wheat, etc., but you sell your debt to me on credit for a certain period with an increment.

Bai’ al-khamr

Sale of alcoholic drinks. It includes the preparation, filtration, carriage, storage and all allied activities, including the sale of containers and utensils of alcoholic drinks.

Bai’ al-khiyar

A sales contract which provides an option to the buyer to annul it.

Bai’ al-mawquf

An agreement of sale which is lawful in substance and description but is concluded with the consent of a third party who does not have an absolute right of ownership over the property of the buyer or the seller. For example, bai al-fuduli.

Bai’ al-mu’ajjal

A credit sale. Tech: 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.

Bai’ al-murabahah

Sale on profit. Tech: A contract of sale in which the seller declares his cost and profit. This has been adopted (with certain modifications) as a mode of financing by a number of Islamic banks. As a financing technique, 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. Many people have questioned the legality of this financing technique because of its great similarity with riba.

Bai’ al-musawamah

Sale of goods at a price on which the buyer and seller agree after haggling and bargaining without mentioning the cost of the seller.

Bai’ al-muzayadah

A public sale through auction in which the deal is struck with the highest bidder. Tech: A form of sale of merchandise in which more than one seller is interested, and before the deal is finalized some of the prospective customers start bidding up the price without the intention of buying it.

Bai’ al-nasi’ah

Credit sale with a fixed term to pay up the agreed price. This method of bai bil nasiah usually resulted in riba dealings in the pre-Islamic days and caused multiplication of the original price if not paid back at the stipulated time.

Bai’ al-Salam

It is defined as advance payment for goods which are to be delivered later. According to normal rules no sale can be affected unless the goods are in existence at the time of the bargain, but this sort of sale forms an exception to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this sale are mostly fungible things and cannot be gold or silver because they are regarded as monetary values. Barring this, bai al-salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this 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 agricultural sector where the bank advances money for various inputs to receive a share in the crop (which the bank sells in the market).

Bai’ al-tawIiyah

A contract of sale in which the seller agrees to sell a product at his cost.

Bai’ al-wadi’ah

A sales contract in which a seller informs the buyer his actual cost and then gives a further discount on it. Thus it is a sale at a loss.

Bai’ al-wafa’

A contract with the condition that when the seller pays back the price of the goods sold, the buyer returns the goods to the seller.

Bai’ alkali’ bil kali’

A postponement or delay in the payment of a debt. Tech: A type of credit sales in which on the date of the discharge of the debt the debtor seeks extension with the promise to pay something in addition. In fact the amount of debt is sold to the debtor for some profit. What is meant by this is, a man’s buying a thing on credit for a certain period and when the period of payment comes and he does not find anything to pay, he says to the creditor: sell it to m_ on credit for a further period for something additional. On this the creditor sells it to him. It may also refer to a man who pays money for wheat or the like, to be given at a certain time and when the time comes the debtor says, ‘I do not have wheat, etc., but you sell your debt to me on credit for a certain period with an increment’.

Bai’ bil-wafa’

A contract with the condition that when the seller pays back the price of the goods sold, the buyer returns the goods to the seller.

Bai’ Bithaman Ail (BBA)

A contract that refers to the sale and purchase transaction for the financing of assets on a deferred and an installment basis with a pre-agreed payment period. The sale price will include a profit margin.


The fiqh concept of Bai’ al-dayn referred to transactions over debts in the open market without any guarantees. Bai’ al-dayn basically envisaged sale over an unpaid debt involving either two, or in some cases, three parties. The basic rationale of the prohibition of Bai’ al-dayn was over uncertainty in its repayment. Bai’ al-dayn could proceed over a bad debt or one in which the debtor simply wanted a further delay due to his inability to pay

Bai’atan fi Bai’ah

It applies to a situation in which a person sells merchandise for certain price in cash on the condition that the buyer will sell it back to him at a higher price on credit. Thus the first seller borrows a certain amount of money to be paid back with an increment (riba) sometime after. It is one of the contrivances to legitimize riba.

Bai’bil barnamaj

Sale of whole bales of goods on the basis of their description in an accompanying catalogue or list of contents (baramaj) without actually unfolding the goods. This was in vogue in Medina and other Islamic cities in the first century A.H. and was treated as permissible by the fuqaha; otherwise wholesale trade would have been impossible.

Bill of Exchange

A certificate issued in a particular legal form. It consists of an order from a person (know as the drawer) to another person (known as the drawee) to pay a certain sum of money at sight, or at a particular or determinable date, to a third person (called the beneficiary).


A mode of financing adopted by banks in Pakistan. According to this agreement the bank purchases moveable or immovable property for the client with the agreement that the client would buy it back from the bank at a higher price, to be paid later by the client.

Commodity Mudarabah

A contract of mudarabah wherein the owner of capital provides the capital in the form of stock-in-trade (urud).

Credit Facility

A credit facility is an upper limit for a customer’s Murabaha transaction. This credit facility may be restricted to a specified type of item, or to a specified time period.


It is a dept or liability created by a contract, expenditure or debt. Al dayn has a definite term fixed for repayment as distinguished from al qard, which does not have a fixed term for maturity.


Responsibility, guarantee, warranty, surety. Tech: Surety against and responsibility for all insurable risks as well as uncertainty. The shari’ah has made the responsibility of the entrepreneur to cover all these risks since he is the one who receives the profit. There cannot accrue any lawful profit to someone who refuses to accept these risks.

Dhaman al-khusran

Surety for loss. Tech: Standing surety for someone’s loss in a business. An application has been made of this principle in the case of , riba-free banking. The state cannot hold out a guarantee to the depositors of a riba-free bank to make good any loss in the deposits through mudarabah or shirkah with the bank.

Dhaman al-naqs

Liability for making-up any loss. It relates to contract for deposits or in riba-free banking. The , riba-free bank is liable to make up any deficiency in the demand deposits of the creditors. The bank is also liable to make up the losses, in case a loss occurs due to violation of the terms of a particular investment deposit. Both the situations are governed by the juridical concept of Dhaman al-naqs.

Dhaman al-talaf

Guarantee to make good any loss which may occur to the property of someone while in safe custody of the guarantor. The term has been applied in the model of , riba-free banking where the bank guarantees demand deposits against any loss.

Dhaman khatar al-tariq

An agreement whereby a person undertakes to indemnify another person if the latter suffers a loss during a journey, provided that the traveler undertakes the journey on the same route’ as identified by the indemnifier.

Diminishing Musharaka

(Also spelt as Musyarakah) A form of partnership in which one of the partners promises to buy the equity share of the other partner gradually until the title to the equity is completely transferred to him. This transaction starts with the formation of a partnership, after which buying and selling of the equity take place between the two partners.

Documentary Credit

A documentary credit is a written undertaking by a bank (known as the issuer) given to the seller (the beneficiary) as per the buyer’s (applicants or orderer’s) instruction or is issued by the bank for its own use; undertaking to pay up to a specified amount (in cash or through acceptance or discounting of a bill of exchange), within a certain period of time, on condition that the seller present documents for the goods conforming to the instructions. In brief, a documentary credit is an undertaking by a bank to pay subject to conformity of the documents to the contractual instructions.

Double Mudarabah

An arrangement according to which capital is advanced to an intermediary (be it a bank, a finance corporation or business firm), on the basis of mudarabah which further gives this capital to a third party again on the basis of mudarabah. In this way two independent contracts take place. The intermediary (say I) enters into contract with the one who advances money on the basis of mudarabah (say S), and the one who takes it on the basis of mudarabah (say E). The profit from the business of E, shall be distributed between ‘E’ and ‘I’ in a given proportion, but any loss on the capital shall be borne by’!’ alone. Similarly, any profit earned by’!’ shall be shared by’S’ and ‘I’ in a predetermined ratio but any loss to’!’ shall be borne by’S’ alone. In this way’!’ acts as agent, and E sub- agent of S.

Fair price

A price that comes into being as a result of the market operation within the framework of the Shari’ah.


(Also spelt as Fatawa) An Islamic legal opinion based upon Quran, Sunnah, and Islamic legal precedent – collectively the Shari’ah. Or A juristic opinion given by a Faqih (scholar of Shari’ah) on any matter pertinent to Islamic law or Islamic economics.

Financial Mudarabah

A contract of sale being practiced by Islamic banks, according to which the banks act as intermediaries to provide finance for purchasing goods to a buyer on the basis of murabahah. The banks charge a mark-up on the sale price quoted by the seller and agree to receive the amount from the buyer over a period of time in the future. This is a development of the classical concept of Bai’ al murarbahah.

Financing Assets

With reference to Islamic banks, these are the assets that are financed through musharakah or mudarabah contracts.


Islamic jurisprudence. The science of the Shari’ah. It is an important source of Islamic economics.


Plural of faqih. Jurist trained in Islamic law or the Sharia in particular, according to the five leading teachers: Maalik, Abu Hanifa, Shafi’e, Ibn Hanbal, and Jaafar Siddiq.

Futures Trading or Sale

Futures trading may be said to proceed over deferred and unpaid debts. A debt is normally created by a trader who enters the market either as buyer or seller without any physical exchange of values. The debt so originated may subsequently become the subject of an offset or a reverse transaction and a chain of sales and purchases may follow that amount essentially of the sale of debts. The offsetting transaction in futures also consists of sales involving a debt that one party owes to another and settles it through the modality of sale and purchase. Many types of sales have been included under Bai’ al duyuun (lit., sale of debts, also known as Bai’ al kali bi al kali), and it has been disputed as to whether some of them do in fact qualify as “sale of debts.”

Haq Maliy

Haq maliy are rights on the financial assets. Examples of such rights are haq dayn (debt rights) and haq tamalluk (ownership rights).


A gift awarded to a person.


A contract that allows a debtor to transfer his debt obligation to a third party.


An act by a person to withdraw his rights i.e. his rights to collect payment from a person who has the obligation to repay the amount borrowed from him.


A manfaah (usufruct) type of contract whereby a lessor (owner) leases out an asset or equipment to its his client at an agreed rental fee and pre-determined lease period upon the aqad (contract). The ownership of the leased equipment remains in the hands of a lessor.

Ijarah Muntahia Bittamleek

One of the forms of Ijarah used by Islamic tenancy institutions is Ijarah Muntahia Bittamleek. This is a form of leasing contract which includes a promise by the lessor to transfer the ownership in the leased property to the lessee, either at the end of the term of the Ijarah period or by stages during the term of the contract, such transfer of the ownership being executed through one of the means specified in the standard.

Ijarah Thumma Bai’

A contract which begins with an Ijarah contract for the purpose of renting out leasing the lessor’s asset to the lessee. Consequently, at the end of the lease period, a lessee will purchase the asset at an agreed price from a lessor by executing a purchase ( Bai` ) contract.

Investment Sukuk

Certificates of equal value representing undivided shares in ownership of tangible assets: usufruct and services or (in the ownership of) the assets of particular projects or special investment activity, however, this is true after receipt of the value of the Sukuk, the closing of subscription and the employment of funds received for the purpose for which the Sukuk were issued.


A purchase order contract of assets whereby a buyer will place an order to purchase the an asset that will be delivered in the future. In other words a buyer will require a seller or a contractor to deliver or construct the asset that will be completed in the future according to the specifications given in the sale and purchase contract. Both parties to the contract will decide on the sale and purchase prices as they wish and the settlement can be delayed or arranged based on the schedule of the work completed.

Istisna’ Certificates

These are certificates of equal value issued with the aim of mobilizing funds to be employed for the production of goods so that the goods produced come to be owned by the certificates holder.

Ittifaq Dhimni

A sale and re-purchase of the underlying asset of which the prices are agreed by the parties prior to the completion of the contract. This is an external agreement, which must be reached before the contract can be concluded to allow for the bidding process ( Bai` al-Muzayadah ) to take place.


Contract of reward; a unilateral contract promising a reward for a specific act or accomplishment.


It has the same meaning with as Dhaman.


A form of fraud, either in word or deed, by a party to the trading contracts with the intention of inducing the other party into making a contract. This is prohibited according to Syariah.


Refers to deception by not disclosing the truth or breaching an agreement in a hidden way. This is prohibited according to Syariah.


Any activities that involves betting whereby the winner will take all the bets and the loser will lose his bet. This is prohibited according to Syariah.


Something that has value and can be gainfully used according to Syariah.


A contract , which is made between two parties to finance a business venture. The parties are a rabb al-mal or an investor who solely provides the capital and a mudarib or an entrepreneur who solely manages the project. If the venture is profitable, the profit will be distributed based on a pre-agreed ratio. In the event of a business loss, the loss will be borne solely by the a provider of the capital.

Mugharasa (Agricultural) Certificates

These are certificates of equal values issued on the basis of Mugharasa contract for the purpose of employing the funds for planting trees and undertaking the work and expenses required by such plantation so that the certificate holders become entitled to a share in the land and the plantation.

Muhassa (Allotment) Partnership

The definition of Sharikat al-inan is applicable to the Muhassa allotment partnership (see the definition of Sharikat al-inan). This type of partnership belongs to the personal private form of company. The reason for this is that the partners take into account before concluding a partnership each ones financial strength and ability to meet financial obligations from his personal assets.


Debt settlement by a contra transaction.

Murabaha Certificates

These are certificates of equal value issued for the purpose of financing the purchase of goods through Murabaha so that the certificate holders become the owners of the Murabaha commodity.


A contract that refers to the sale and purchase transaction for the financing of an asset whereby the cost and profit margin (mark-up) are made known and agreed by all parties involved. The settlement for the purchase can be settled either on a deferred lump sum basis or on an instalment basis, and is will be specified in the agreement.

Musaqa (Irrigation) Certificates

Certificates of equal values issued for the purpose of using the funds mobilized through subscription for the irrigation of fruit bearing trees, spending on them and caring for them on the basis of a Musaqa contract so that the certificate holders become entitled to a share in the crop as per agreement.

Musharaka Certificates

(Also spelt as Musyarakah) These are certificates of equal value issued with the aim of using the mobilized funds for establishing a new project, developing an existing project financing a business activity on the basis of any of partnership contracts so that the certificate holders become the owner of the project or the assents of the activity as per their respective shares, whit the Musharaka certificates being managed on the basis of participation on Mudaraba or an investments agency.


A partnership arrangement between two parties or more to finance a business venture whereby all parties contribute capital either in the form of cash or in kind for the purpose of financing the business venture. Any profit derived from the venture will be distributed based on a pre-agreed profit ring ratio, but a loss will be red on the basis of equity participation.

Muzara’a (Sharecropping) Certificates

Certificates of equal values issued for the purpose of using the funds mobilized through subscription for financing a project on the basis of Muzara’a so that the certificate holders become entitled to a share in the crop according to the terms of the agreement.

Parallel Istaisna’a

Another form of istaisna’a, known in modern custom as parallel istisna’a al istisna’a al muwazi, takes affect through two separate contracts. In the first contract, the Islamic financial institution acts in the capacity of manufacturer, builder or supplier and concludes a contract with the customer in the second contract, the institution acts in the capacity of a purchaser and concludes another contract with a manufacturer, builder or supplier in order to fulfill its contractual obligations towards the customer in the first contract. By this process, a profit is realized through the difference in price between the two contracts and, in most cases, one of the two contracts is concluded immediately: (i.e. the Istisna’ contract entered into with the manufacturer, builder or supplier), while the second contract (i.e. the contract entered into with the customer) is concluded later.

Parallel Salam

If the seller enters into another separate Salam contract with a third party to acquire goods the specification of which correspond to that of the commodity specified in the first Salam contract, so that he (the seller) can fulfill his obligation under that contract, then this second contract is called, in contemporary custom, parallel Salam or Salam Muwazi. The following is an example of such a contract. An institution on one hand buys a specified quantity of cotton from farms on a Salam basis and, in turn, the buyer in the first Salam contract enters into a new separate Salam contract with textile mills so as to provide them, by means of that new Salam contract, with cotton, the specifications of which are similar to the specifications of the cotton to be acquired under the fist Salam contract, without making the execution of the second Salam contract contingent on the execution of the first Salam contract.


Qabdh means possession, which refers to a contract of exchange. Generally, qabdh depends on the perception of ‘urf or the common practices of the local community in recognising that the possession of a good has taken place.

Qardh Hasan

A contract of loan between two parties on the basis of social welfare or to fulfill a short-term financial need of the borrower. The amount of repayment must be equivalent to the amount borrowed. It is however legitimate for a borrower to pay more than the amount borrowed as long as it is not stated or agreed at the point of contract.


An act whereby a valuable asset is used made as a collateral for a debt. The collateral will be utilised to settle the debt when a debtor is in default.


An increase, which in 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, and is prohibited according to Syariah.

Salam Certificates

These are certificates of equal value issued for the purpose of mobilizing salam capital so that the goods to be delivered on the basis of salam come to be owned by the certificate holder.


A buying and selling of currencies.


A credit instrument issued to a creditor to enable him to use or cash it at another predetermined venue and at the future date.


A document or certificate, which evidences the undivided pro-rata ownership of underlying assets, – the Sak (singular of Sukuk ) is freely tradable at par, premium or discount.


Islamic law, originating from the Qur`an (the holy book of Islam), as well as practices and explanations rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Syariah scholars to determine the true ruling of the divine law in a subject matter on which the revelation is not explicit).


Penalty agreed upon by the contracting parties as compensation that can rightfully be claimed by the creditor when the debtor fails or is late in meeting his obligation to pay back the debt.

Tadlis al-’aib

Refers to the activity of a seller intentionally hiding the defects of goods. This activity is prohibited according to Syariah principles.


This is a form of Islamic insurance based on the principle of ta’awun or mutual assistance. It provides mutual protection of assets and property and offers joint risk ring 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.


Refers to a conspiracy between a seller and a buyer wherein the buyer is willing to purchase the goods at a higher price. This is done so that others would rush to buy the goods at a higher price, resulting in the seller obtaining a huge profit. This transaction is not permissible in Islam.


Financial payment for the utilisation of services or manfaat. In the context of today’s economy, it can be in the form of salary, wage, allowance, commission and the like.

Uqud al mu’wadat

The contracts of exchange, the primary concern of this contract are trading as well as selling and buying activities inclusive of their subdivisions such as Salam, Ijarah, Qard, Istisna\’ and others.

Uqud al-Ishtirak

Contract of partnership.

Uqud al-Tabarruat

Charitable contract.

Urbun or Arbun

A deposit or earnest money which forms as part payment of the price of goods or services paid in advance, but will be forfeited in the event the transaction is cancelled. The forfeited money is considered as hibah (gift).

Wadiah Yad Dhamanah

Goods or deposits, which have been deposited with another person, who is not the owner, for safekeeping. As wadiah is a trust, the depository becomes the guarantor and, therefore guarantees repayment of the whole amount of the deposits, or any part thereof, outstanding in the account of depositors, when demanded. The depositors are not entitled to any re of the profits but the depository may provide returns to the depositors as a token of appreciation.


A contract, which gives the power to a person to nominate another person to act on his behalf as long as he is alive based on the agreed terms and conditions.


A tax, which is prescribed by Islam on all persons having wealth above a certain amount and that is an exemption limit at a rate fixed by the Syariah. According to the Islamic belief Zaka h t purifies wealth and souls. The objective is to take away a part of the wealth of the well-to-do and to distribute it among the 8 categorises stated in the Qur’an.