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Muhaba

Arabic (محاباة) for deference in a transaction. More specifically, it means a favor extended in an exchange-based transaction, either by…

Muslam Fihi

The object of a salam contract which is exchanged for the price (thaman or ras-ul-mal). It is the commodity or…

Yad al-Amana

A situation where a person takes possession (hiyaza) of an object or a form of wealth (mal) as a proxy/...

Negotiated Price Sale

In Islamic finance, it refers to the selling (ba'i/ bay) of a commodity at an agreed upon price irrespective of...

Buyu Muharramah

Arabic (بيوع محرمة) for prohibited sales; a category of buyu (pl. of ba'i or bay') that consists of all sales...

Ba’i Habal al-Habalah

Arabic (بيع حبل الحبلة) for a type of prohibited sale that was prevalent in pre-Islamic Arabia where the fetus of...

Prohibited Sales

A category of buyu (pl. of ba'i or bay') that consists of all sales that are impermissible under shari'a due...

Musha

Arabic (مشاع) for a share in undivided property. It is an unidentifiable portion in a common property- i.e., a property...

Securitization

The process of issuing certificates that represent debts and loans (generally any type of obligations). The issued certificates (or securities)...

Pooling

The process of mixing, and adding together, a number of shari’ah-compliant asset classes in securitization (tasnid/ taskik) or capital structure. Examples of pooling (khultah) in...