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Guaranteeing Principal Repayment in Sukuk

A guarantee or undertaking (binding promise– wa’ad mulzim) by either the issuer of sukuk or the manager of sukuk-financed project/…

Tangibility Ratio

The amount of tangible assets or holdings (or tangibles-backed instruments) to the size of overall asset base (such as total...

Aqd Muawadhah

Arabic (عقد معاوضة) for compensatory contract (commutative contract) whereby one party receives compensation/ consideration (iwadh) from another party in return...

Financial Murabaha

A sale contract that is used by Islamic banks and financial institutions acting as intermediaries in order to provide finance...

Ahliyyah al-Ada Al-Kamilah

Arabic (أهلية الأداء الكاملة) for being completely eligible for taklif/ takleef, i.e., the capacity (ahliyyah) of a person to enjoy...

Fardh

Arabic for obligation or duty. In this sense, and in usul al-fiqh, fardh (فرض) encompasses all acts considered by shari’a…

Prevailing Rate

A rent or wage amount or consideration that is determined by an arbitrator or judge (if disputed), or with respect…

Riba Ghair Mubashir

Arabic (ربا غير مباشر) for indirect riba. It is a type of riba that arises from the simultaneous exchange of…

Riba Mubashir

Arabic (ربا مباشر) for direct riba. It constitutes an increment that a lender receives over and above the principal amount…

Right To Claim Hawala

A hawala that involves the transfer of the right to claim from one creditor to another. The new creditor replaces…