From a shari’a perspective, it is not permissible that a solvent debtor defaults on his debt or delays settlement (in...
A guarantee or undertaking (binding promise– wa’ad mulzim) by either the issuer of sukuk or the manager of sukuk-financed project/…
The amount of tangible assets or holdings (or tangibles-backed instruments) to the size of overall asset base (such as total...
Arabic (عقد معاوضة) for compensatory contract (commutative contract) whereby one party receives compensation/ consideration (iwadh) from another party in return...
A sale contract that is used by Islamic banks and financial institutions acting as intermediaries in order to provide finance...
Arabic (أهلية الأداء الكاملة) for being completely eligible for taklif/ takleef, i.e., the capacity (ahliyyah) of a person to enjoy...
Arabic for obligation or duty. In this sense, and in usul al-fiqh, fardh (فرض) encompasses all acts considered by shari’a…
Originally known in Arabic as tawarruq, it is a transaction whereby a person buys an asset/commodity from a seller on…
The accounting process which aims to provide appropriate information, not necessarily limited to financial data, to the stakeholders of a…
Arabic (بيع باطل) for void sale (void contract/ transaction of sale). It is a type of bay' (belonging to the...