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Islamic Finance


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Aqd al-Tabarru


Arabic (عقد التبرع) for noncommutative contract or gratuitous contract. This type of contracts (aqd) is based on voluntary charitable actions/donations (tabarruat – plural of tabarru) such as gifts (hibah/ hibat), benevolent loans (qardh hasan), simple loans (ariyah), endowment (waqf), alms (sadaqah), etc. The donor (mutabarre’) does not seek any compensation in return for the value of donation. The ownership of of a property (or valuable item) is transferred without a commutative exchange.

Aqd al-tabarru’ belongs to a broader class of contracts known as uqud al-tamlikat(also uqud al-tamlik).


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