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Islamic Finance

  Islamic Finance   |   Terms
  • 445
  • January 14, 2023
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Shubhat al-Riba

Arabic (شبهة الربا) for potentiality of riba or suspicion of existing of riba in a transaction or dealing. In other words, shubhat al-riba corresponds to a transaction potentially involving or leading to riba (whether payment or receipt). For example, a murabaha contract (aqd al-murabaha) may still be susceptible to riba, i.e., is associated with shubhat al-riba if there is no clear-cut stipulation in the contract (aqd) that the lender (seller) is not granting a credit facility against a fee.


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