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Mudarabah Capital

The capital that is provided by rab al-mal in a mudarabah contract. Put another way, it is the amount of…

Mu’amala

Another name for mudaraba (mudarabah/ mudharaba/ mudharabah); by definition, it is a partnership (sharakah) in profit whereby one party (rab...

Kafalat Al-Dayn

A type of guaranty (kafalah) that involves the credit enhancement of a liability. According to the Hanbali and Shafi’e schools…

Kadik

An Arabized term that refers to the improvements a tenant (lessee) makes to a shop or plant from his own…

Khulu

Literally, khulu is Arabic for vacancy or emptiness (as in a vacant or empty place). Technically, khulu is usually associated…

Khayar al-Naqd al-Islami

An Islamic finance treasury arrangement that an Islamic bank and a counterparty enter into for the purpose of foreign exchange…

Promissory Note

A type of commercial paper that constitutes a certificate whereby the issuer promises to pay a specific amount of money…

Participation Sukuk

A type of musharaka sukuk that represent certificates of equal value (sukuk) issued for the purpose of investing the funds…

Provision

A charge that an Islamic bank makes against earnings. In other words, it is a contra-asset that is created by…

Principal Contract

A contract (aqd) which exists by itself and is not subordinate or auxiliary to another contract (i.e., an accessory contract).…