Glossary

This glossary is according to the glossary of Sharī`ah Advisory Council of BNM.

Akad istithaq Contract of guarantee.

Akad isytirak Contract of partnership, such as mudarabah and musyarakah.

Akhz al-ajr `ala al-jah Charging fee for someone’s reputation.

Akhz al-ju`l `alaruqyah min al-Quran Charging fee for treatment/medication using verses of al-Quran.

Al-`adah muhakkamah Common practice as basis of the ruling.

Al-ajl Deferment.

Al-bai` Sale contract.

Al-bai` wa al-salaf Sale contract with credit term.

Al-ijarah thumma al-bai` Lease contract followed by ownership of asset through a sale contract.

Al-jam`ubaina `aqd al-qardhwa `aqd al-mu`awadhah Combination of a loan contract and an exchange contract.

Al-muqasah al-ittifaqiyyah Offsetting by mutual agreement of contracting parties.

Al-muqasah al-jabariyyah Offsetting by order of the authority.

Al-naqdyalid al-naqd Money begets money.

Al-wa`d bi al-tamlik Promise to own or acquire ownership.

Bai` `inah Sale contract followed by repurchase by the seller at a different price.

Bai` dayn Sale of debt.

Bai` al-dayn bi al-dayn Sale of debt with debt.

Bai` sarf Sale of currency.

Bai` al-usul bi al-khasm Sale of asset at discount.

Bai` al-kali’ bi al-kali’ Refer to bai` al-dayn bi al-dayn.

Bai` bithaman ajil Sale contract based on deferred payment at certain price.

Bai` mu’ajjal Refer to bai` bithamanajil.

Bai` muzayadah Sale contract based on bidding or auction.

Bai` salam Sale contract based on order of a certain asset with certain specifications. Full payment is made in cash at the time of conclusion of the contract, whereas the delivery of the asset is deferred to a specified time.

Bai` wadhi`ah Sale contract with a price lower than acquisition cost.

Bai`atain fial-bai`ah Two sales contracts within one sale contract.

Dayn ghair thabit Debt that is not yet established.

Dayn mustaqir Debt for which the liability to pay is established.

Dayn thabit Debt that is fixed.

Dhaman Guarantee.

Dharar Harm.

Dhawabit Guidelines.

Dho` wata`ajjal Reducing the amount of debt when the debtor makean early settlement.

Facultative Re-Takaful agreement executed between a Takaful company and another Takaful company (including conventional insurance company), and the Takaful company that underwrites the risks is having the option to distribute or cede, whereas the latter or conventional insurance company has the option to receive or refuse the risks.

Faraid The knowledge or rules on estate distribution according to Islamic principles.

Fasakh Termination.

Fasid Defective, invalid.

Fiqh muamalat A discipline of knowledge that discusses the rules relating to human affairs.

Fuqaha Fiqh scholars.

Gharamah Fine/penalty.

Gharar Uncertainty.

Gharar yasir Minimal uncertainty.

Ghasb Confiscation or unlawful seizure of property.

Hajah Need.

Hamish jiddiyyah Security deposit.

Hibah ruqba A gift during the lifetime of the giver or recipient of hibah with a condition that the death of a party (either the giver or recipient of hibah) is the effective condition for ownership of the property by the surviving party.

Hibah umra A gift during the lifetime of the recipient or giver of hibah on the condition that the property will be returned to the giver in case of death of the recipient.

Ibra` Rebate/waiver of partial or total claim against certain right or debt.

Ibra` mu`allaq Ibra` that is subject to certain condition and if the condition is satisfied, the ibra` will be given.

Ibra` muqayyad Ibra` that is limited by certain conditions.

Ijarah Lease or service contract that involves benefit/usufruct of certain asset or work for an agreed payment or commission within an agreed period.

Ijarah muntahia bi al-tamlik Lease contract that ends with acquisition of ownership of the asset by the lessee.

Ijtihad Rigorous thinking and efforts by scholars who have attained the degree of mujtahid in order to issue certain Sharī`ah ruling definitely in a matter that is not clearly provided in al-Quran or Sunnah.

`Illah Effective cause.

Isqatal-haq Waiving of right.

Istiqrarta`amul Smooth running of market.

Istisna Sale contract by way of order for certain product with certain specifications and certain mode of delivery and payment (either in cash or deferred).

Istisna` muwazi Parallel istisna.

Ittifaqiyyah Mutual agreement.

`Iwad Consideration.

Jumhur Majority.

Kafalah Guarantee.

Kafalah bi al-Ujr Guarantee with fee.

Kafil Guarantor.

Makful `anhu Guaranteed party.

Makfullahu Recipient of guarantee or beneficiary.

Mani` Syar`ie Sharī`ah impediment.

Marhun Charged property.

Maslahah Public interest.

Masnu` Manufactured item.

Maysir Gambling.

Mu`ayyan bi al-zat Clearly identifiable and determinable in terms of location, quantity, and quality.

Mubara’ah Mutual waiving of right.

Mudarabah Profit-sharing contract.

Mudarib Entrepreneur of a mudarabah joint venture.

Mulzimah Binding.

Muqaradah Refer mudarabah.

Muqasah Offsetting.

Muqtada al-`aqd Objective of the contract.

Murabahah Sale contract with a disclosure of the asset cost price and profit margin to the buyer.

Murtahin A party who asks for collateral.

Musahamah Mutual contribution.

Musawamah Sale contract without the disclosure of the asset cost price and profit margin to the buyer.

Musya` A feature of a jointly owned asset that cannot be separated or divided.

Musyarakah Profit and loss sharing.

Musyarakah mutanaqisah A contract of partnership that allows one (or more) partner(s) to give a right to gradually own his share of the asset to the remaining partners based on agreed terms.

Musyarik Partner.

Muta`arafan Becoming common practice.

Muwa`adah mulzimah Binding promise of both parties.

Nafaqah Cost of liability.

Qabd Possession over a particular asset.

Qard Loan contract.

Qard hasan Benevolent loan.

Qawl al-jadid New opinion.

Qawl al-qadim Earlier opinion.

Qimah ismiyyah Nominal price.

Qimah suqiyyah Market price.

Qiradh Refer to mudarabah.

Qiyas Analogy.

Rabbul mal Capital owner/investor.

Rahin Chargor.

Rahn Pledge/charge.

Rahn al-musya` Charge on a jointly owned asset.

Rahn rasmi Surrender of charge via formal record in the registry of the authority.

Sadd zarai` Sharī`ah approach in blocking the means that may lead to a person’s involvement in forbidden matters.

Sighah The pronunciation of offer and acceptance.

Siyasah Syar`iyyah Basis and approach taken by the ruler for the interest of the nation and the people, which is in line with Sharī`ah principles.

Sukuk Islamic securities/bonds.

Sukuk commodity murabahah Islamic securities based on tawarruq contract.

Sukuk ijarah Islamic securities based on ijarah contract.

Syahadah al-dayn Debt certificate.

Syubhah Doubt.

Ta`awun Helping each other.

Ta`widh Compensation.

Tabarru` Voluntary donation/contribution.

Takaful A scheme that is based on the spirit of cooperation and helping each other by providing financial assistance to participants when needed and all participants mutually agree to give contribution for the said purpose.

Outward Re-Takaful Distribution of underwritten risks by a Takaful company to another Takaful company or a conventional insurance company.

Inward Re-Takaful Acceptance of risks by a Takaful company from another Takaful company.

Taklufah Actual cost.

Takyif Adaptation.

Takyiffiqhi Fiqh adaptation.

Tanazul Waive of the entitlement to claim.

Taqyid Limiting.

Tasarruf Dealing.

Tawarruq/commodity murabahah Purchasing an asset with deferred price, either on the basis of musawamah or murabahah, then selling it to a third party to obtain cash.

Tawatu’ Prearrangement.

Treaty Re-Takaful agreement between a Takaful company and another Takaful company (including conventional insurance company), which requires the Takaful company to distribute or cede its underwritten risks and the Takaful company or conventional insurance company that had concluded the agreement shall undertake the risks.

Ujr `alawakalah Agency fee.

Ujrah Commission.

`Uqud mu`awadhat Contracts of exchange.

`Uqud musamma Contracts that are known amongst the scholars, mentioned in classical fiqh literature and precisely explained in the sources of rulings (such as al-Quran and Sunnah).

`Uqud mustajiddah Contemporary contracts.

`Urbun Down payment/deposit.

`Urf Common practice that is acceptable by the community and does not contradict the Sharī`ah rulings.

`Urftijari Common business practice that is acceptable by the community and does not contradict the Sharī`ah rulings.

Wa`d Promise.

Wa`d bi al-syira’ Promise to buy.

Wa`d mulzim Binding promise.

Wadi`ah Safekeeping contract in which a party entrusted his property to another party for safekeeping and to be returned upon request.

Wadi`ah yad amanah Safekeeping contract based on trust.

Wadi`ah yad dhamanah Safekeeping contract with guarantee.

Wakaf A form of endowment by an owner of a property for public benefit and well-being that is allowed by Sharī`ah.

Wakalah Agency contract.

Wakalah bi al-istithmar Agency contract for investment.

Wasi A person appointed to execute a will.

Zari`ah ila riba Means leading to riba.

Zan al-ghalib Presumption that is closer to certainty.

Zimmah Liability.