Professional Documents
Culture Documents
ISLAMIC FINANCE
TERMS OF
ISLAMIC FINANCE
Al-'uurf
• Commission, Fees or
Wages in return of
services performance or
efforts on assignment.
Al-Fard Al-Kifa
• Unconditional Power of
Attorney
Al-Rahn
• Safekeeping
Awkaf /Awqaf
• It is a ancient currency
introduce in the Arab
State in an early period.
Darura
• A requirement, or an emergency
situation that Sharia permits to
preserve life at any means and
assure the safety of an individual
or the community.
Fatwa
• Duty
Farman
• Order or Degree by
Judge or State.
Fiqh
• Islamic jurisprudence in
accordance to the Islamic
Shariah and an important part
and the base of Islamic
economics.
Fuqaha
• Permissible in accordance to
Holy Quran. An activity may be
economically sound but may not
be allowed in the Islamic society
if it is not permitted by the
Shariah.
Hajj
• Gathering
Ju'alal
• It is a guarantee provided by a
person to the owner of goods
who had placed his goods with a
third party. The guarantor and the
3rd party must meet any
subsequent claim by the owner
for his goods.
Maysir
• An economic business
deal or an act between two
or more parties for a
specific purpose.
Murabaha
• Owner of capital
Rehen
• Collateral
Riba
• Usury of trade. It is an
alternative term for Riba al-
Buyu.
Riba al-Diyun
• Usury of debt
Riba al-Nasia
• Musharaka
Suftajah…
• Obligation which is
prescribed by Islam on all
persons having wealth
above an exemption limit at
a rate fixed by the Shariah.
Zakat al-Fitr
• Poll Tax.
Zakat al Maal