ʿadālah / ʿadl

ʿadālah and ʿadl are basically two forms of the same word. It is a general term which means justice, equity, equitableness and fairness.

ʿādāt

All acts performed by an individual are of three types: (i) ʿādāt, (ii) ʿibādāt, and (iii) muʿāmalāt. ʿĀdāt are the habits, customs, and all other acts which an individual performs as part of his normal life, e.g., like eating, drinking, bathing, etc. In other words, ʿādāt refers to those acts that are not performed as an act of worship (ʿibādah). For the definition of the other two types of acts, see below.

aḥādīth

Plural of ḥadīth. For meaning, see below.

aḥkām

Plural of ḥukm. For meaning, see below.

ajr

Remuneration or recompense. It basically refers to the ‘price’ (compensation) paid for services received or usufruct utilized.

ãkhirah

Refers to the Day of Judgement (when Allah will resurrect all creatures) and all the events that will follow culminating in admission to heaven or hell.

akhlāq

Plural of khuluq. The term refers to the practice of ethical values, morality and manners.

akl al-māl bi al-bāṭil

This term refers to any means of unlawful/wrongful acquisition of wealth as prescribed and detailed by the Sharīʿah.

al-ajīr al-mushtarak

A worker who may concurrently serve or be contracted by a number of clients, for instance a lawyer. It also refers to a worker, such as a tailor, who offers his services to many and thus may be contracted by several clients at one point of time.

al-ḍarūriyyāt al-khamsah

It refers to those five basic necessities or dire needs without which a person may face death or irreparable loss. These are: religion, life, intellect, property, and progeny.

Allah

Commonly translated as “God”. In fact, it is one of the ‘personal’ names of the Creator of this universe Who has uncountable attributes. The closest rendering of the word in English would be “the Only One worthy of worshiping”.

al-rizq al-iḥbāsīyah

Also known as irṣād. For definition, see above.

amān

Security granted by a person from any harm by others or by a conqueror to the conquered peoples.

amānah / amānāt

Amānah (plural amānāt) literally means trust or being trustworthy. Amānah entails absence of liability for loss except in breach of duty. It also refers to deposits in trust.

ʿāmil

A worker entitled to remuneration. Usually, it is used to refer to the person(s) and/or entity responsible for zakāh collection. Zakāh collectors are one of the eight categories prescribed by the Holy Qur’ān as recipients of the zakāh proceeds.

amīn

Trustee, a person safeguarding others’ entrusted property as if it was his own; he is not liable in case of any damage to the trust property without any negligence or misconduct on his part.

amn

Peace; safety; security.

ʿaqd

‘Aqd is a central term in Islamic business law, which means, “contract”. ‘Aqd also refers to any transaction, which takes place and creates any right and liability for the parties.

ʿaqd tabādulī

An exchange contract. Any contract in which one counter value is exchanged for another.

ʿaqīdah

ʿAqīdah refers to those matters that a Muslim must believe in, in order to be regarded as a Muslim. These matters must be believed in with certainty and conviction in one’s heart and soul without being tainted with any doubt or uncertainty. More clearly, ʿaqīdah is to believe in Allah and everything related to Him; His worthiness of worship and lordship, His names and attributes, belief in the angels, the Holy books, all the Prophets and Messengers, predestination, the resurrection and the last day of judgment, heaven and hell, and everything authentic in the religion.

ʿāqilah

Kins or the persons of relationship who share any financial responsibility, especially blood money; an ancient Arab custom considered to be the essence of modern Islamic insurance.

ʿāriyah

Gratuitous loan of non-fungible objects; loan of a particular piece of property, the substance of which is not consumed by its use, without anything taken in exchange. In other words, it is the gift of usufruct of a commodity that is not consumed on use. ʿĀriyah is generally used to refer to the neighborly lending of small articles.

aṣl

Plural uṣūl. Principles or general rules of Islamic jurisprudence.

awqāf

Plural of waqf. For meaning, see below.

ãyah (pl. ãyāt)

Ãyah (plural ãyāt) refers to one verse of the Holy Qur’ān.

aʿyān

Plural of ʿayn, meaning determinate property; property that is not dayn – the things that could be used for paying a liability; generally, the commodities of material value in themselves.

bāligh

This term refers to a person having reached legal age as prescribed by the Sharīʿah. Upon reaching this age, all injunctions of the Sharīʿah are applicable upon the person. Having reached this age is a pre-condition for the validity of most contracts.

barakah

Barakah means to grow and increase with stability and continuity beyond expectations. The Islamic concept of barakah is that Allah grants it whom He wishes and that such growth and prosperity only comes from Him alone and it cannot be attributed any worldly measure.

bāṭil

Void, invalid; refers to a transaction, a contract governing a transaction or an element in a contract which is invalid.

bayʿ

Sale. In Islamic finance it is often used as a prefix when referring to different sale-based modes, like bayʿ al-mu’ajjal (sale on deferred payment basis), bayʿ al-salam (sale on advance payment basis, etc.).

bayʿ al-dayn

Sale of debt or debt instruments, e.g. discounting/rediscounting of debt-based securities, collateralized debt obligations, etc. The provision of debt-based capital by way of sale/purchase of debt instruments and papers. These types of contracts/transactions are prohibited according to the majority of the scholars including AAOIFI and the Jeddah-based Islamic Fiqh Council.

bayʿ al-ʿīnah

Also known as buy-back. This refers to a contractual arrangement between two parties to sell and buy-back a commodity/asset simultaneously. This type of buying/selling is prohibited because the deal can easily be designed as a subterfuge for prohibited ribā.

bayʿ al-murābaḥah

The shorter form ‘murābaḥah’ is more commonly used. For meaning, see below.

bayʿ al-rajā’

A type of sale in which the seller expects to repossess the commodity sold. This sale is usually used as a subterfuge for ribā, and hence is not permissible. The debtor sells some commodity (usually land/house) to the lender in lieu of the loan; the loan amount acting as the price of the commodity. The lender benefits from the commodity for the period of the loan. Once the debtor repays the loan, the lender gives back the commodity to the debtor; the repayment of the loan acting as the re-purchase price. This type of sale is very much similar to bayʿ al-ʿīnah.

bayʿ al-salam

A sale contract in which payment is made in advance by the buyer and the delivery of goods is deferred by the seller. The date of delivery and fairly accurate description of goods must be given in the contract.

bayʿ al-ṣarf

It means currency exchange. Other than the exchange of modern fiat money, it also includes exchange of gold for gold, silver for silver and gold for silver or vice versa. The rules of bayʿ al-sarf dictate that when both counter values are of the same kind (e.g., gold for gold, silver for silver, dollar for dollar, etc.), both counter values must be the same in quantity and the exchange must be done hand to hand without delay. If however, the counter values are of different kind (e.g., gold for silver, silver for dollar, pound for euro, etc.), then only one condition applies i.e., that the exchange must be done hand to hand without delay.

bayʿ al-ʿurbūn

A sale contract in which the buyer gives a small part of the price of goods/services bought as down payment and parties commit themselves to the conditions agreed in the contract. The final contract is concluded upon full payment. If the buyer cancels the sale, he loses the down payment. If the seller cancels the contract he has to pay double the amount of the down payment as a penalty for backing out of the deal. These are customary practices in modern days. However, fiqhī opinions differ with respect to their permissibility. Most modern scholars permit these in the broader interest of market discipline.

bayʿ al-wafā’

Literally, it means a ‘sale of honor’. It involves the sale of an asset with a right for the seller, having the effect of a condition, to repurchase the property by refunding the purchase price within a set period of time; and the buyer agrees to honor the condition of the seller. Basically, a pledge; the sold asset is treated as collateral till the amount is paid back by the seller. Most of the scholars do not consider it to be permissible as it is a case of bayʿ al-ʿīnah.

bayʿ bi-thaman al-ãjil / bayʿal-mu’ajjal

Technically, bayʿ bi-thaman al-ãjil (also known as bayʿal-mu’ajjal) means a sale contract in which payment is delayed. There is no necessity that the delayed payment is higher than the cash price. However, in current practice, the deferred payment is higher than the cash price and is paid in instalments. Hence, in practice this term and bayʿ al-murābaḥah are the same and are used alternatively.

bayt al-māl

The public treasury of the Islamic State/Muslim Community. Historically, it was also used as a charitable institution meant to help the poor and needy.

bulūghah

Becoming a bāligh. See above.

ḍaʿīf

Literally, it means weak. Technically, it is an attribute used to describe that a particular ḥadīth is not authentic. It can also be used to describe one of the narrators of the ḥadīth, meaning that he/she is not of sound character and/or memory which will render his narration unauthentic.

ḍamān

A contract of guarantee where a person underwrites any claims or obligations that should be fulfilled by a debtor in the event that the debtor contractor fails to fulfill his obligation; any third party can become surety for the payment of debt. It is a covenant/pledge given to a creditor that the debtor will pay the debt or any other liability.

ḍamān al-ʿaqd

Guarantee/liability arising from terms and conditions stipulated in a contract.

ḍamān al-itlāf /

ḍamān al-mutlafāt

Liability due to damaging or destroying something.

ḍamān al-māl

Financial liability and/or guarantee.

ḍamān al-nafs

Guaranteeing the presence (usually in court) of an individual upon demand in criminal or commercial offence bail.

ḍamān al-yad

Liability to pay/compensate arising from possession of an asset on trust. It is the liability on someone who was originally liable to hold something in trust, however, as a result of his carelessness, the asset is damaged or destroyed.

ḍamānāt

Plural of ḍamān. For meaning, see above.

ḍāmin

Guarantor. The person(s) who provides guarantee or is liable to compensate, i.e., the person providing ḍamān.

ḍarūrah

Plural ḍarūrāt. It means a necessity or a dire need without which a person may face death or irreparable loss to life, intellect, progeny, property or religion. It is usually used in the context of the ‘Doctrine of Necessity’, whereby something otherwise prohibited becomes temporarily permissible.

ḍarūrī

Something which is a ḍarūrah (plural ḍarūrāt). It means a necessity or a dire need without which a person may face death or irreparable loss to life, intellect, progeny, property or religion. It is usually used in the context of the ‘Doctrine of Necessity’, whereby something otherwise prohibited becomes temporarily permissible.

ḍarūriyyāt

It refers to those basic necessities or dire needs without which a person may face death or irreparable loss to life, intellect, progeny, property or religion.

ḍawābiṭ

Singular ḍābiṭah. It means a general rule of Islamic fiqh which is applicable to a particular chapter or area of fiqh but is not applicable to other chapters or areas. In this sense, ḍawābiṭ are different from qawāʿid as the qawāʿid are more general in nature and are applicable to many chapters/areas of fiqh whereas the ḍawābiṭ are particular to only one chapter/area.

daʿwah

Call, Invitation. It is used to refer to acts that involve propagation of Islam; inviting people to embrace Islam or Muslims to adhere to the teachings of Islam.

dhimmah

Dhimmah is a term in Islamic jurisprudence that refers to an attribute of a person by which he or she is ready to uphold obligations and responsibilities imposed by the Lawgiver toward any mukallaf (sane adult).

dīn

Religion.

dīnār

Currency in the form of gold coins used by Muslims throughout Islamic history.

dirhams

Currency in the form of silver coins used in the past in several Muslim countries, and still used as legal tender in some Muslim countries.

dīwān

It refers to the register kept by the state in which the names or documents relating to the army or those who were given stipends were recorded.

diyah (pl. diyāt)

Compensation for taking a person’s life (blood money) or harm inflicted on an organ/part of the body.

faḍīlah

Virtue; any attribute which makes one person better than the other in that particular respect.

falāḥ

Falāḥ means to thrive, become happy or to have success. Technically, it implies success and happiness both in this world and in the hereafter.

faqīh

A jurist, who is an expert in Islamic jurisprudence (fiqh) and who gives rulings on various juristic issues in the light of the Qur’ān and the Sunnah.

faqr

Poverty.

farā’iḍ

Farā’iḍ (singular farḍ), literally, refers to all actions and deeds that are obligatory upon a Muslim according to the Sharīʿah. Technically, the term farā’iḍ is also used to refer to the Islamic law of inheritance as detailed in the Qur’ān and Sunnah.

farḍ

All actions and deeds that are obligatory upon a Muslim according to the Sharīʿah. The term wājib is used almost synonymously.

farḍ al-kifāyah / farḍ kifā’ī

Farḍ al-kifāyah (also known as farḍ kifā’ī) is that type of obligation which is a duty on the community as a whole. If some people perform it, others are absolved of it. If no one performs it, all are sinful. An example is offering funeral prayers for the deceased.

fasād / fasād fi al-arḍ

Fasād or fasād fī al-arḍ is a terminology used in a number of the verses of the Qur’ān which broadly means to act corruptly on earth disobeying Allah Almighty’s commands.

fatāwá

Plural of fatwá. For meaning, see below.

fatḥ al- dharīʿah

It is the opposite of sadd al-dharīʿah. For meaning, see below.

fatwá (pl. fatāwá)

Fatwá (plural fatāwá) is a ruling on a point of Islamic law or Islamic way of life given by a religious scholar or recognized authority.

fay’

Booty acquired without actual fighting, i.e., due to the other party’s surrender.

fiqh

Refers to the whole corpus of Islamic jurisprudence. In contrast with conventional law, fiqh covers all aspects of life, religious, political, social, commercial or economic. The whole corpus of fiqh is based primarily on interpretations of the Qur’ān and the Sunnah and secondarily on ijmā’ (consensus) and ijtihād (juristic judgment). While the Qur’ān and the Sunnah are immutable, verdicts based on ijtihād may change due to changing circumstances.

fiqh al-buyūʿ

Refers to fiqh matters specific to the field of trade.

fiqh al-iqtiṣād

Refers to fiqh matters specific to the field of economics.

fiqh al-muʿāmalāt / fiqh muʿāmalah

Generally, it is used to describe fiqhī rules relating to relationships/contracts among human beings as opposed to fiqh al-ʿibādāt which refers to the fiqhī rules relating to the acts of worship. Sometimes it is used in a specific meaning, i.e., it is used to refer only to that branch of fiqh which relates to Islamic commercial jurisprudence, or the rules of transacting in a Sharīʿah compliant manner.

fiqhī

Relating to fiqh.

fiṭrah

Refers to the primordial human nature created by Allah in every human being which urges them to choose ‘good’ over ‘bad’ in all things.

fiṭrānah (zakāẗ al-fiṭr)

Fiṭrānah is a term usually used in the Indian sub-continent region. The more commonly used Arabic term is zakāẗ al-fiṭr. For meaning, see below.

fuqahā’

Plural of faqīh meaning jurist, who is an expert in Islamic jurisprudence (fiqh) and who gives rulings on various juristic issues in the light of the Qur’ān and the Sunnah.

ghanā’im

Singular ghanīmah. War booty acquired after fighting as opposed to fay’ which is acquired without a fight (see above).

gharar

Literally, it means deception, danger, risk and uncertainty. Technically it means exposing oneself to excessive risk and danger in a business transaction as a result of uncertainty about the price, the quality and the quantity of the counter-value, the date of delivery, the ability of either the buyer or the seller to fulfil his commitment, or ambiguity in the terms of the deal; thereby, exposing either of the two parties to unnecessary risks. In economic terminology its meanings are close to “asymmetric information”.

ghaṣb

The wrongful appropriation of property by force.

ghish

Cheating, fraud, deception. All such things are prohibited by the Sharīʿah.

ghurm

Literally, it means loss or liability. It is usually used as part of the legal maxim ‘al-ghunmu bi al-ghurm’ which means that one is entitled to a gain (in finance and business) only if one is prepared to bear the responsibilities and liabilities that come with the transaction including the possibility of loss.

ḥadd

Plural ḥudūd. Specific punishments ordained by Allah for serious violations of His commandments, e.g., adultery, stealing, drinking wine, etc. These punishments are prescribed for only a handful of the most serious sins. Punishments for all other sins/violations are left at the discretion of the ruler with certain limits and guidelines prescribed by the Sharīʿah.

ḥadīth (pl. aḥadīth)

Sayings, deeds and endorsements of Prophet Muhammad (may the peace and blessings of Allah be upon him) narrated by his companions.

ḥadīth qudsī

It refers to those types of aḥādīth in which the Prophet (may the peace and blessings of Allah be upon him) specifically attributes the words to Allah Almighty; as opposed to other aḥādīth, in which the Prophet (may the peace and blessings of Allah be upon him) conveys Allah’s message in his own words.

ḥājah (pl. ḥājāt)

Ḥājah, plural ḥājāt, means need. It is usually used in the context of the ‘Doctrine of Necessity’ (see ḍarūrah above) and is different from the term ḍarūrah in the sense that ḍarūrah refers to a dire need or essential necessities without which the person faces either death or irreparable loss, whereas ḥājah refers to a need without which one can survive but faces immense or undue hardship.

ḥājī (pl. ḥājiyyāt)

Ḥājī, plural ḥājiyyāt. It is basically a different form of the term ḥājah (plural ḥājāt) mentioned above.

ḥajj

Hajj, is the fifth pillar of Islam. It involves pilgrimage to Makkah and other Holy places around it and performing specified worships between the 8^th and the 13^th day of the Islamic month of Dhul Hijjah (the twelfth month in the Islamic lunar calendar). This duty is compulsory only once during each Muslim’s life time provided he/she is financially and physically able to carry it out.

ḥalāl

Things and activities permitted by Sharīʿah.

Ḥanafī

A school of Islamic jurisprudence named after Imam Abu Hanifah.

Ḥanbalī

A school of Islamic jurisprudence named after Imam Ahmed bin Hanbal.

ḥaqq

Truth, right. Al-Haqq, the Truth, is one of the names of Allah. In the fiqh of financial transactions, the term haqq signifies a right which a party possesses, for example the creditor’s right to payment. Plural ḥuqūq.

ḥarām

Things and activities prohibited by the Sharīʿah, e.g., giving or taking ribā, gambling, eating pork, etc.

ḥasan ṣaḥīḥ

Technical term used to describe the degree of authenticity of a ḥadīth. It refers to a ḥadīth belonging to the second category of authenticity with the first category being denoted as ṣaḥīḥ. This term is mostly used by Imam al-Tirmidhi in his book al-Sunan.

ḥawālah

It means transfer; legally, it is an agreement by which a debtor is freed from a debt by another becoming responsible for it; or the transfer of a claim of a debt by shifting the responsibility from one person to another – contract of assignment of debt. It also refers to the document by which the transfer takes place.

ḥawl

The term ḥawl is used by the jurists to describe the period of time which must pass before a Muslim in possession of funds equaling or exceeding the exemption limit (nisāb) must pay zakāh on his wealth. In the case of cash, gold and silver it is one Islamic year, i.e., a lunar year of approximately 354 days.

ḥayā’

Its meaning is close to modesty, shyness, and bashfulness. However, technically it refers to that trait of inner shyness/modesty which prevents a Muslim from committing sins.

hibah

Hibah means gift, an act of transferring of ownership of an asset or usufruct without an exchange of counter value during the lifetime of the transferor.

ḥifẓ al-nafs

Right pertaining to protection of life.

ḥikmah

Literally, Wisdom. Technically, the wisdom or rationale behind Devine commandments.

ḥīlah

Plural ḥiyal; ruses, tricks used in transactions to circumvent the basic prohibitions.

ḥisbah (al-ḥisbah)

Technically, it refers to an institution that existed through most of Islamic history for implementing what is proper and preventing what is improper. The main role of al-ḥisbah was the regulation and supervision of markets to ensure proper market conduct by all concerned.

ḥiyal

Singular ḥīlah; for definition, see above.

ḥubūs

Another term used for waqf/awqāf. For meaning, see below.

ḥudūd

Plural of ḥadd. For definition, see above.

ḥukm

Literally, Orders. Technically, Devine commandments. Plural aḥkām. In fiqh, it refers to the Sharīʿah rulings (e. g. obligatory, recommended, neutral, reprehensible, or forbidden) associated with any action.

ḥukr

Ḥukr was a mode of financing used especially for waqf properties. In this mode, the financier takes the waqf property on a long-term lease and pays two types of rent. The first is paid in advance usually being equal or close to the price of the property. The second is a small amount paid annually to the waqf. In return, the lessee is entitled to all forms of benefit from the property except its sale, as if he was the owner of the property. This right (the right of ḥukr) is also inheritable.

ḥuqūq

Plural of haqq. For definition, see above.

ḥuqūq al-ʿibād

The rights and responsibilities of a Muslim towards other human beings (the society at large).

ḥusn

Literally, it means beauty or prettiness. Technically, it means that whatever is in accordance with the rules of the Sharīʿah, is good and is permissible and praiseworthy. It is usually used to determine a ruling in those contemporary matters in which there is no clear evidence from the Qur’ān or Sunnah. Whatever is good and beneficial and does not contradict any rule of the Sharīʿah, is ḥasan (derived word from ḥusn) and is thus permissible. Antonym: qubḥ.

ʿibādah (pl. ʿibādāt)

ʿibādah, plural ʿibādāt; meaning worship or any type of ritual act performed with the intention to gain the pleasure of Allah

ibāḥah

Permissibility from a Sharīʿah point of view. The term is also used when someone declares that his property/belongings are permissible to use by others (the general public or a set group of people), free of charge.

ibrā’

Release/discharge. Technically, it means voluntarily giving up one’s established claim against someone or one’s recognized right (financial or otherwise); fully or partially.

ʿiddah

Refers to the time period a woman must observe after her divorce or after the death of her spouse during which she may not marry or be betrothed to another man.

iḍṭirār

Dire necessity. Usually used for the ‘Doctrine of Necessity’, whereby something otherwise prohibited becomes temporarily permissible.

ifrāṭ

Literally, it means to transgress, exceeding the limits that should be observed. In financial context, it is used almost synonymously with the term taʿaddī (explained below).

iḥsān

Beneficence, kindness, virtue.

iḥtikār

Hoarding; the prohibited practice of purchasing essential commodities, when not available in the market in bulk, such as food, and storing them in anticipation of an increase in price.

ījāb

Offer, in a contract; see also qabūl.

ijārah

Leasing. Sale of usufruct of an asset. The lessor retains the ownership of the asset with all the rights and the responsibilities that go with ownership. Ijārah also refers to services offered by persons/institutions.

ijārah muntahiyah bi al-tamlīk

Lease culminating into transfer of ownership of the leased asset to the lessee in such a way that the lease and sale contracts are kept separate and independent transactions. It is also sometimes referred to as ijārah wa-iqtinā’.

ijmāʿ

A consensus of Islamic scholars (fuqahā’). Ijmāʿ is one of the sources of Islamic law.

ijtihād

In technical terms, it refers to the efforts by jurist(s) to derive a rule or reach a judgement based on evidence found in the Islamic sources of law, predominantly, the Qur’ān and the Sunnah.

iltizām

Liability, responsibility or obligation.

imām

Literally, it means a leader, guide or ruler. Usually, it is used to refer to an Islamic scholar who has vast knowledge and excellent grasp of the Qur’ān and the Sunnah and has a following.

īmān

Faith or belief; the acceptance and affirmation of Oneness of Allah, His books, His messengers, His angels, the hereafter and Divine decree.

ʿīnah

Short form of bayʿ al-ʿīnah; also known as buy-back. This refers to a contractual arrangement between two parties to sell and buy-back a commodity/asset simultaneously. This type of buying/selling is prohibited because the deal can easily be designed as a subterfuge for prohibited ribā.

ʿinān

Short form for sharikaẗ al-ʿinān. For meaning, see below.

infāq

Spending. In the literature of Islamic economics, it usually refers to spending in the way of Allah i.e. it is a general term which encompasses all the different forms of charity in Islam including expenditure on self and family.

infāq fi sabīlillāh

Spending in the way of Allah. See infāq above.

iqṭāʿ

Assignment of land by the government as private property.

irṣād

A waqf established by the ruler/king for the benefit of the public.

isnād

It refers to the chain of narrators in a Ḥadīth.

isrāf

Extravagance, excessiveness (especially in expenditure). It covers spending on lawful objects but exceeding moderation in quantity or quality; spending on superfluous objects while necessities are unmet; spending on objects which are incompatible with the economic standard of the majority of the population.

istibdāl

Exchanging one thing with another. It is usually used in the context of waqf properties, i.e., replacing the original waqf property with another when the original property becomes such that benefit can no longer be derived from it.

istighlāl

A type of sale, in fact used to conceal a usurious loan. In this sale, the borrower supposedly sells to the lender a piece of real estate in lieu of the loan; the loan amount acting as the price of the land/house. Once the borrower repays the loan, the asset reverts back to him; the repayment of the loan acting as the re-purchase price. In the meantime, the lender leases the asset to the borrower (so that the borrower could go on using it) and the “rent” acts as the interest for the loan. In reality, this is simply an interest-bearing loan transaction with a piece of real estate as security, and hence is not permissible.

istiḥsān

It is a doctrine of Islamic law that allows exception to strict legal reasoning, or guiding choice among possible legal outcomes, provided the same is not against the basic texts of Qur’ān and Sunnah, when considerations of human welfare so demand.

istiṣḥāb

This is one of the secondary sources of Islamic law and legal deduction. Literally, it means permanency. Technically, it refers to the presumption of continuity, i.e. that a situation or a fact whose existence or non-existence had been proven in the past should be presumed to have remained as such until the contrary is proven. A scholar can use the concept of istiṣḥāb in deducing a ruling if other proofs are absent. For example, a person is considered free from liability until proven otherwise.

istiṣnāʿ

Used as a short form for bayʿ al-istiṣnāʿ. Refers to a contract whereby a manufacturer (contractor) agrees to produce (build) and deliver a well-described good or (premises/road etc.) at a given price on a given date in future. As against bayʿal-salam (a similar sale contract maturing in future where no manufacturing is involved. For definition see below) in istiṣnāʿ the price need not be paid in advance. It may be paid in instalments, or partly at the front end and the balance later in accordance with the agreement between the parties.

istithmār

Investment.

jahālah

Ignorance, lack of knowledge; indefiniteness or uncertainty in a contract, sometime leading to gharar.

jalb al-maṣlaḥah

To achieve or promote maṣlaḥah. For details, see definition of maṣlaḥah below.

jihād

Striving or fighting in the way of Allah for the establishment of Islam.

jināyāt

Singular jināyah. It refers to all types of injuries/harm inflicted upon a person or his property.

jinn

Usually translated as “genie”, which according to Advance Learners Dictionary means “an imaginary spirit with magic powers in ancient Middle Eastern stories”. That is not correct. According to the Holy Qur’ān, jinn is a real (not imaginary) creation of Allah. It is the only creation of Allah, besides human beings, who have the discretion to choose the way they want to act and are hence responsible for their deeds. Like human beings, they will have to account for their deeds on the Day of Judgment.

jizyah

Poll tax imposed on non-Muslim citizens of an Islamic state against protection granted to them.

juʿālah

Payment for performing any job or providing any service, result of which is not sure to be achieved. An example is finding a lost property. Payment is contingent on fulfilment of the prescribed job or service. Even though some uncertainty is involved, the determination of the end result is considered sufficient to make it permissible.

kafālah

Kafālah means responsibility, amenability or suretyship; legally, in kafālah a third party gives surety for the payment of debt. It is a pledge given to a creditor that the debtor will pay the debt, fine etc.

kafīl

The party assuming responsibility in a kafālah contract for repayment of another’s debt.

kāfir

One who does not believe in Allah or refutes any of His commandments.

khalīfah

Vicegerent. For definition, see khilāfah below.

kharāj

Literally, it means any financial obligation imposed on someone. Technically, it refers to a specific tax on land imposed on conquered lands in return for the land remaining with the original owners and the state not acquiring it.

khāṭi’

Refers to a person who is a frequent and persistent sinner.

khilāfah

Vicegerency. According to the Qur’ān, man is the vicegerent of Allah on earth and as such, must follow and implement His laws on earth.

khiyānah

A breach of trust, betrayal or treachery.

khiyār

Option or a power of a contracting party to annul or cancel a contract.

khiyār al-ʿayb

Option due to defect, i.e., the buyer has the option to return the goods if they are found defective. According to the Sharīʿah this option is automatically available to the buyer.

khiyār al-ghabn

Option related to the price. If the seller sells a good at a price which is exorbitantly higher than the market price and the buyer is deceived into thinking that he is buying at the market price (whether this deception is from the seller or due to the buyer’s lack of knowledge/expertise), then the buyer has the option to revoke the contract and get back the price as this is a form of deception which is explicitly prohibited in Islam.

khiyār al-ru’yah

Option to revoke a sale contract to be exercised on seeing the goods.

khiyār al-sharṭ

A right, or an option, stipulated by one or both of the parties to a contract, to cancel the contract for any reason for a fixed period of time, e.g., three days.

khiyār al-waṣf

Option of quality – where goods are sold by specified quality, if that quality is absent, the goods can be returned, i.e., the buyer has the option to revoke the contract.

khulʿ

In Islamic fiqh, it refers to when a wife demands divorce through court in return for foregoing/repaying the dower or giving a monetary compensation to the husband.

kullīyah fiqhīyah

A general fiqh principle/rule applicable in a vast number of cases. This is similar to the more commonly used term qawāʿid fiqhīyah (see below). The difference between these two is that the term qawāʿid is more general in nature. Qawāʿid is used to refer to universal principles of fiqh which cover almost all chapters/branches of fiqh, while kullīyah fiqhīyah is used for general rules/principles applicable to a few or a single chapter and not all. Sometimes the two terms are used interchangeably as well.

madāris

Religious schools.

maḍarrah

Anything harmful. Opposite of manfaʿah (explained below).

madhhab

Pulral madhāhib - way of going; a fiqh school or orientation characterized by differences in the methods by which certain source-texts are understood and therefore differences in the Sharīʿah rulings which are deduced from them. There are four well-known madhāhib among Sunni Muslims whose names are associated with the classical jurists who are said to have founded them (Ḥanafī, Mālikī, Shāfiʿī and Ḥanbalī).

mafsadah

Plural mafāsid. Anything declared harmful by Sharīʿah, or anything hampering the achievement of the maqāṣid al-sharīʿah.

majlis/majlis al-ʿaqd

Refers to the place and time where a contract is entered into. The majlis al-ʿaqd remains valid until the contracting parties separate and leave the place of contract.

māl

Anything that can be possessed; includes money such as gold, silver and monetary units, commodities such as clothes and foodstuffs, and immovable properties such as houses and factories, or any established rights.

māl mutaqawwam

Items that are lawful to use or consume in Sharīʿah; or wealth considered commercially valuable by Sharīʿah. Legal tenders of modern age that carry monetary value are included in māl mutaqawwam. It is possible that certain wealth may have no commercial value for Muslims (i.e., it is non-mutaqawwam) but is valuable for non-Muslims. Examples are wine and pork.

Mālikī

A school of Islamic jurisprudence named after Imam Malik.

manfaʿah

Literally it means benefit or beneficial. Technically, it means the yield which any utilizable property produces. The term is often used by the fuqahā’ to describe the usufruct associated with a given property, especially in leasing transactions. In an automobile lease, for example, the term manfaʿah might be used to describe the benefit which the lessee derives or may derive from the use of the vehicle for the duration of the lease (as opposed to the actual ownership of the vehicle).

manīḥah

It is a special type of ʿāriyah. ʿĀriyah refers to the gratuitous loan of non-fungible objects; loan of a particular piece of property, the substance of which is not consumed by its use, without anything taken in exchange. In other words, it is the gift of usufruct of a commodity that is not consumed on use. Manīḥah refers to the gratuitous loan of such items which generate some benefit such as fruit-bearing trees, milk-giving or child-bearing animals, and similar items.

maqāṣid

Literary means ‘objectives’. In Islamic literature it is often used as a short form for maqāṣid al-Sharīʿah. For definition, see below.

maqāṣid al-Sharīʿah

Basic objectives of the Sharīʿah. It refers to a juristic-philosophical concept developed by the classical jurists, who attempted to formulate the goals and purposes of the Sharīʿah in a comprehensive manner to aid in the process of investigating new cases and organizing previous existing rulings. Imam al-Ghazāli defined these objectives to be: protection of faith, life, progeny, property and reason/intellect. While, not questioning the importance of these five, some contemporary writers have argued that there are many more.

maqṣad

Plural maqāṣid; for definition, see above.

maʿrūf

Literally, it means that which is commonly known or acknowledged to be good. Technically, it includes everything both internal and external which has been enjoined by Allah and His Prophet (may the peace and blessings of Allah be upon him). Antonym: munkar.

maṣlaḥah

Literally, it means benefit. Technically, it refers to any action taken to protect the objectives of the Sharīʿah; the five basic ones being: protection of faith, life, progeny, property and reason. Sometimes the term maṣlaḥah is also used as a short form of maṣlaḥah mursalah explained below.

maṣlaḥah ʿāmmah

It is that type of maṣlaḥah (welfare/benefit) which is in the best interest of the society at large. It may or may not be beneficial for the individual.

maṣlaḥah khaṣṣah

It is that type of maṣlaḥah (welfare/benefit) which is in the best interest of the individual. It may or may not be beneficial for the society at large.

maṣlaḥah mursalah

The aspect of general welfare/benefit of mankind/society that is kept in view by the scholars competent to undertake ijtihād while resolving contemporary issues specific guidelines for which are not found in the Qurā’n and the Sunnah. Catering to the well-being of the people in this worldly life as well as the hereafter or relieving them of hardships is a basic objective of the Sharīʿah and is the basic rule adhered to in determining what is to be considered as maṣlaḥah and what is not.

maṣlaḥah, (pl. maṣāliḥ)

Literally, it means benefit. Technically, it refers to any action taken to protect the objectives of the Sharīʿah; the five basic ones being: protection of faith, life, progeny, property and reason. Sometimes the term maṣlaḥah is also used as a short form of maṣlaḥah mursalah explained below.

mawqūf

The item/property endowed, i.e., given as waqf.

mawqūf ʿalayh

The beneficiary/beneficiaries of a waqf.

maysir

Literally, it refers to an ancient Arabian game of chance with arrows used for stakes in slaughtered animals. Technically, it refers to gambling or any game of chance.

miʿrāj

The miracle of the Prophet Muhammed (peace be upon him) when he was taken on a night journey from Makkah to Jerusalem and then to the Heavens.

mu’adhin

The person who makes the call to the ṣalāh called the adhān.

muʿāmalah

Plural muʿāmalāt. For definition, see below.

muʿāmalāt

Singular muʿāmalah. Relationships and/or contracts among human beings as against ʿibādāt which define the relationship between Allah and His creatures.

muʿāwaḍah /

ʿuqūd al- muʿāwaḍat

Literally, it means compensation. Technically, it refers to compensatory contracts, i.e., those contracts in which each party receives a counter value. It is usually used as opposite to charitable contracts (ʿuqūd al-tabarruʿāt) in which no compensation can be received or demanded.

muḍārabah

A contract between two parties, capital owner(s) or financiers (called rabb al-māl) and an investment manager (called muḍārib). Profit is distributed between the two parties in accordance with the ratio upon which they agree at the time of the contract. Financial loss is borne only by the financier(s). The entrepreneur’s loss lies in not getting any reward for his services.

muḍārabah muqayyadah

Restricted muḍārabah. A muḍārabah contract in which the financier (rabb al-māl) imposes business restrictions upon the investment manager (muḍārib) and the muḍārib is contractually bound to conduct the business only as per the restrictions stipulated by the rabb al-māl.

muḍārabah mutanāqiṣah

A specific type of muḍārabah in which the muḍārib gradually repays the rabb al-māl (the financier) his investment and becomes the sole owner of the partnership business.

muḍārib

An investment manager in a muḍārabah contract.

mughārasah

An agricultural contract similar to muzāraʿah (see below) in which a land owner agrees to grant the farmer a share from the fruit or product of the garden/orchard that the latter plants and waters.

muḥāl ʿlaihi

It refers to the person upon whom the debt is transferred in a ḥawālah contract (defined above).

muḥtasib

The person or institution given the authority to perform the duty of al-ḥisbah (defined above).

mukallaf

It refers to a person who has the necessary conditions for being accountable (legally and religiously) for all his actions. The necessary conditions being that he is of sound mind and has reached the legal age of puberty as detailed in Islamic fiqh literature.

mukhāṭarah

Risk whether financial or otherwise. Mukhāṭarah includes (among others) the risk involved in ‘gharar’, ‘maysir’ and ‘jahālah’ (for definition of these terms, see above).

munkar

Literally, it means that which is rejected or that which is bad. Technically, it refers to everything which Allah and His prophet (may the peace and blessings of Allah be upon him) have forbidden. Antonym: maʿrūf.

muqāraḍah

A synonym of muḍārabah.

muqāṣṣah

Setting off two debts, or the payables by the parties in financial contracts (instead of taking or making delivery of the subject matter/price as per each contract).

muqtaḍá al-ʿaqd

It refers to rights, responsibilities and obligations that are inherent to the nature of a contract even if they are not expressly stipulated.

murābaḥah

Shortened term for bayʿal-murābaḥah. It means sale at a specified profit margin; deferral of payment is conceptually not necessary. However, in current practice it refers to a sale agreement whereby the seller purchases the goods desired by the buyer and sells them at an agreed marked-up price, the payment being settled within an agreed time frame, either in instalments or in a lump sum. The seller bears the risk for the goods until they have been delivered to the buyer. In current practice, bayʿ al-murābaḥah is sometimes referred to as bayʿ al-mu’ajjal, though technically there is a difference between the two.

murṣad

It is a type of financing used for waqf properties. In this mode the financier provides a loan to the waqf for its development. The financier then takes the waqf property on a long-term lease with minimal rent until the loan amount is recovered either through sub-lease or through utilizing the waqf property for any other income-generating purpose. The lease comes to an end once the financier/lessee has recouped the amount lent.

musāqāh

A contract in which the owner of a garden agrees to share its produce with someone in an agreed proportion in return for the latter’s services in irrigating and looking after the garden.

musāṭaḥah

A special kind of a lease contract in which a land owner grants construction rights over his property to another for an agreed upon rent/price. This is usually a long term contract having a maximum limit of 50 years in the laws of most countries.

musāwamah

Sale without any reference to the cost price to the seller; sale with bargaining on the price, not the profit margin as in murābaḥah.

mushārakah

Partnership. A mushārakah contract is similar to a muḍārabah contract, the difference being that in the former both the partners participate in the management and the provision of capital, and share in the profit and loss. Profits are distributed between the partners in accordance with the ratios initially set, whereas loss is distributed in proportion to each one’s share in the capital.

mushārakah mutanāqiṣah

Also known as diminishing mushārakah; a kind of partnership in which the share of one party decreases periodically/gradually. The financier’s share of equity is reduced each month, quarter or year through partial purchase by the other partner – the client. In other words, by the client returning the capital to the financier.

mushārik

A partner in a mushārakah or any shirkah business.

Muslim

A person believing in Islām, the divine religion revealed to Prophet Muḥammad (may the peace and blessings of Allah be upon him) and preserved in the Holy book Al-Qur’ān and the Sunnah of Prophet Muḥammad (may the peace and blessings of Allah be upon him).

mutawallī / mutawalliyyūn

Trustee of the waqf. Plural mutawalliyyūn.

muzāraʿah

Share-cropping. A contract whereby one party agrees to till the land owned by the other party in consideration for an agreed share in the produce of the land.

naṣṣ (pl. nuṣūṣ)

Clear texts of the Sharī´ah, i.e. Qur’an and Sunnah.

naẓārah

Naẓārah refers to an institution which basically means that person/entity which has the authority to inspect and control the administrations of religious foundations like awqāf. The person/entity performing the task of naẓārah is called a nāẓir. In other words, a nāẓir is the official who oversaw and controlled the acts of a mutawallī (administrator of a religious foundation especially a waqf). The mutawallī is required to consult the nāẓir regarding the affairs of the foundation he is administering.

nāẓir

It refers to either a manger of a waqf or the person/entity appointed to oversee the manager of a waqf in cases where a nāẓir (supervisor) and a mutawallī (managers are appointed separately). See also, naẓārah above.

niṣāb

The exemption limit for paying zakāh. A Muslim possessing wealth below this threshold (the niṣāb) is exempt from zakāh whereas a Muslim with wealth at or exceeding the niṣāb is obligated to pay zakāh.

nuṣūṣ

See naṣṣ above.

PBUH (or pbuh)

Abbreviation of “Peace be upon him”; meaning may Allah bless the soul of Prophet Muhammad and protect him from all evil.

qabūl

Acceptance, in a contract; see also ījāb.

qāḍī

Judge of an Islamic court.

qāʿidah

Plural qawāʿid. For definition, see qawāʿid below.

qarḍ

Legally, qarḍ means to give anything having value in the ownership of the other by way of virtue so that the latter could avail of the same for his benefit, with the condition that same or similar amount of that thing would be paid back on demand or at the settled time. It is that loan which a person gives to another as a help, charity or advance for a certain time. It is also used as a short form of qarḍ ḥasan.

qarḍ ḥasan

A loan extended without interest or any other compensation expected to be received from the borrower. The lender expects a reward only from Allah.

qawāʿid

Singular qāʿidah. These refer to the universal principles of fiqh formulated in a concise legal form, embodying broad general rulings in cases that fall under their subject.

qawāʿid al-fiqhiyyah

See qawāʿid above.

qimār

Qimār means gambling. Technically, it is an arrangement in which possession of a property is contingent upon the happening of an uncertain event. By implication it applies to a situation in which there is a loss for one party and a gain for the other without specifying which party will lose and which will gain (a zero-sum game).

qiṣāṣ

A provision of Islamic law to punish those who cause any harm to the human life – a murderer is executed to death in exchange.

qiyās

Derivation and application of a rule/law on the analogy of another rule/law if the basis (ʿillah) of the two is the same. It is one of the secondary sources of Islamic law.

qubḥ

Literally, it means ugliness. Technically, it means that whatever contradicts the rules of the Sharīʿah, is bad and is condemned and forbidden. It is usually used to determine a ruling in those contemporary matter in which there is no clear evidence from the Qur’ān or Sunnah. Whatever is bad and harmful and contradicts or violates any rule of the Sharīʿah, is qabīḥ (derived word from qubḥ) and is thus forbidden. Antonym: ḥusn.

Qur’ān

The Holy Book of Muslims, consisting of the revelations made by Allah to the Prophet Muhammad (may the peace and blessings of Allah be upon him). The Qur’ān lays down the fundamentals of the Islamic faith, including beliefs and all aspects of the Islamic way of life.

qurbāni

A term mostly used in the Indian sub-continent. The more commonly used Arabic term is ‘uḍḥiyah. It refers to the ritual of Holy sacrifice of animals given annually on the days of the second annual ʿīd (eid) of the Islamic Hijrah year. It can be offered on the days from 10-13 of Dhul Ḥijjah, the last month of the Islamic Hijrah calendar. This sacrifice is a highly rewarding form of worship and is the Sunnah of the Prophet Muhammed (peace be upon him) and also of the Prophets Ibrahim and Ismail (peace be upon them) and is a reminder of the great sacrifice made by the latter two.

rabb al-māl

Capital provider (financier) in a muḍārabah contract.

rahn

Collateral. Legally, rahn means to pledge or lodge a real or corporeal property of material value, in accordance with the law, as security, for a debt or pecuniary obligation so as to make it possible for the creditor to recover the debt or some portion of the goods or property. In the pre-Islamic contracts, rahn implied a type of earnest money which was lodged as a guarantee and material evidence or proof of a contract, especially when there was no scribe available to put it into writing.

ribā

Literally, it means increase or addition or growth. Technically, it refers to the ‘premium’ that must be paid by the borrower to the lender along with the principal amount as a condition for the loan or an extension in its maturity. Interest as commonly known today is the most famous type of ribā.

ribā al-faḍl

That kind of ribā which relates to exchange of some specified commodities mentioned in a ḥadīth. If items of exchange are of the same specie, the exchange of these commodities should be equal and also instant. Some differences in application details exit among various schools of fiqh.

ribā al-nasī’ah

That kind of ribā where deferred payment of one of the exchangeables is involved.

ribā fāḥish

Excessive or exorbitant ribā.

rijs

Something which is impure, harmful and impermissible.

risālah

Risālah is one of the main articles/pillars of Islamic faith. It refers to the belief in the Messengers sent by Allah for man’s guidance. Allah sent numerous Messengers at different times and different places throughout human history. All Messengers of Allah were human beings chosen by Him to deliver His message to mankind through revelations He made upon them (usually through His angels). Adam (the first human) was the first Messenger of Allah and Prophet Muhammad (peace be upon him) was the last. Moses and Jesus both were also Messengers of Allah.

SAAW

Abbreviation for “Sallahu Alaihi Wa Sallam. It has the same meaning as PBUH explained above.

ṣadaqah (pl. ṣadaqāt)

A charitable act. An act done with the intention of seeking the pleasure of Allah. Plural ṣadaqāt.

sadd al-dharīʿah (pl. sadd al-dharā’iʿ)

To prohibit a permissible deed on the ground that permitting it usually opens the door to other prohibited deeds.

ṣaḥīḥ

In commerce it is used to describe a valid contract, opposite of bāṭil (void contract). In the context of Ḥadīth, it is used to refer to a Ḥadīth of the highest level of authentication.

ṣakk

Plural ṣukūk. For definition, see below.

ṣalāh

One of the five ‘pillars of Islam’ (compulsory duties). Normally translated as prayers. But it is not in the ordinary sense of ‘asking favors from God’. Technically, it is a specific form of worship that every Muslim must perform at appointed times, five times during every 24 hours.

salam

Short form for bayʿ al-salam, which refers to a sale contract in which payment is made in advance by the buyer and the delivery of the goods is deferred by the seller. The date of delivery and fairly accurate description of goods must be given in the contract.

ṣāniʿ

The manufacturer or contractor in an istiṣnāʿ contract.

ṣarf

Short form for bayʿ al-sarf. It means currency exchange. Other than the exchange of modern fiat money, it also includes exchange of gold for gold, silver for silver and gold for silver or vice versa. The rules of bayʿ al-sarf dictate that when both counter values are of the same kind (e.g., gold for gold, silver for silver, dollar for dollar, etc.), both counter values must be the same in quantity and the exchange must be done hand to hand without delay. If however, the counter values are of different kind (e.g., gold for silver, silver for dollar, pound for euro, etc.), then only one condition applies i.e., that the exchange must be done hand to hand without delay.

sawkarah

Ibn Abidin called insurance sawkarah or sūkarah (security or securité), influenced by the Italian term siguare and the Turkish sigorta.

ṣawm (pl. ṣiyām)

Usually translated as “fasting”. Technically, it is worshipping Allah in a manner specified by the Sunnah. It involves prohibition of some acts from dawn to sunset. Avoiding taking any kind of food or drink is one of those prohibitions (there are others). It is because of this that usually it is translated as fasting. But actually, it is one of the five ‘pillars of Islam’ (compulsory duties). Every Muslim (with some exceptions allowed by Sharīʿah) has to observe this duty during full Lunar month of Ramadan every year. Plural ṣiyām.

Shāfiʿī

A school of Islamic jurisprudence named after Imam Shāfiʿī.

shahādah

One of the five ‘pillars of Islam’ (compulsory duties). In fact, this is the most basic of all. It means sincerely declaring one’s faith in the Unity of Allah and proclaiming total, voluntary and perpetual obedience to all His commandments. It also requires believing in Prophets, Devine Books, Angles, Day of Judgment and an unending Life thereafter.

sharʿī

Something referring to the Sharīʿah or something in conformity with the Sharīʿah.

Sharīʿah

Refers to the corpus of Islamic law based on Divine guidance as given by the Qur’ān and the Sunnah and embodies all aspects of the Islamic faith, including beliefs and practices.

sharikah / shirkah

A contract between two or more persons who launch a business or financial enterprise to make profits. In the conventional books of fiqh, the partnership business has been discussed under the caption of shirkah that, broadly, may include both mushārakah and muḍārabah as well as other forms of partnerships.

sharikaẗ al-ʿinān

It is the commonest type of a partnership contract and refers to a partnership between two or more parties for the purpose of earning profit by means of investment in a joint business venture with capital, profit, and other rights and responsibilities not necessarily equal.

shirk

The act of associating partners with Allah. It is the gravest sin in Islam which can only be forgiven if one repents sincerely. A person doing shirk is not considered a Muslim.

shūrá

Islamic institution of consultation in the process of decision-making.

ṣīghah

Ṣīghah is a term used by the Islamic scholars to refer to the formal exchange which takes place between the contractual parties indicating their willingness to enter into the contractual agreement and therefore constitutes the contract itself. The ṣīghah is an integral element (rukn) of the Islamic contract and essentially consists of a proposal (ījāb) on the part of one contractual party and an acceptance (qabūl) on the part of the other, either of which may be verbal, written or even gestural, depending on the circumstances under which the contract is closed.

sīrah

Refers to the whole life of the Prophet Muhammed (peace be upon him) and how he lived it. Sīrah not only refers to the detailed biography of the Prophet Muhammed (peace be upon him), but also includes his sayings, acts and endorsements.

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