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Zakat al-Waqf

Zakat, as a type of ibadah, is concerned with money, wealth or property. By definition, it is an amount of...

Ba’i al-Ayn bil Ayn

A mode of trading (mutajarah) which involves the exchange of one asset for another without resorting to a medium of exchange (i.e.,...

Ba’i al-Mustarsil

A case of sale (ba’i) in which the buyer doesn’t haggle over the price (i.e., takes it as a given)....

Dain Hal

Arabic (دين حال) for debt (dain) that is falling, or has fallen, due. Dain hal must be repaid by the...

Hybrid Sukuk

A type of sukuk structure in which the underlying pool of assets consists of two or more Islamic finance contracts. For example,...

Asset-Backed Financing

Islamic banks lend funds based on trade (i.e., real economic activities) rather than pure finance. In other words, they act as...

Islamic Derivative

A shari’a-compliant form of derivatives that is based on using contracts such as salam, back-to-back loans, etc., and applying tools...

Investment Risk Reserve

A reserve that is created by an Islamic bank by appropriating a specific amount out of the income of investment...

IRR

It stands for investment risk reserve; a reserve that is created by an Islamic bank by appropriating a specific amount out of...

Hila

A ruse/ trick/ stratagem that is used in commercial or financial transactions as a means to circumvent the basic prohibitions...