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Islamic Finance creating wealth through trading in real assets, investments and partnership

Glossary - still under construction

Amanah - refers to deposit in trust.  Current accounts in a bank can be regarded as Amanah.

 

Aqd - a bilateral contract.

 

Aqila - shared responsibility

 

Arbun - down payment, a non-refundable deposit paid by the buyer retaining a right to confirm ro cancel a sales contract.

 

Arkan - elements of a contract i.e. pillars of a contract.

 

Baatil - void

 

Bai - sale or exchange.

 

C…..

 

 

D….

 

 

E….

 

Fiqh - the science of Islamic jurisprudence or Islamic Law.

 

Faqih - an expert in Fiqh.

 

Hadith - sayings of the Prophet Mohammed.

 

Gharar - element of uncertainty in a any business transaction or a contract which can be prevented or avoided. 

 

Hawala - it litererally means to transfer.  An agreement in which the debtor is freed from a debt by transferring  to another person taking on the obligation. This term also refers to the actual document.

 

Ijara is a leasing agreement whereby the bank/person buys an item for a customer and then leases it back over a specific period.

 

 

Ijma - consensus of all or majority of the jurists on a certain Sharia matter