|
A-E, F-L, M-P, Q-S, T-Z
|
| Al-Ajr |
| Refers
to commission, fees or wages charged for services. |
| Al-fard
al-kifa'i |
| Socially
obligatory duties. Literally, a collective duty of Muslims,
the discharge of which by some of them absolves the rest of
its performance, such as funeral prayers. Technically
it covers such functions which the community fails to or cannot
perform and hence are taken over by the state, such as the provision
of utilities, building of roads, bridges and canals etc. |
| Amana/Amanah |
| Intrust |
| Al-wadia |
| Resale
of goods with a discount on the original stated cost. |
| Al-wakala
|
| Absolute
power of attorney |
| Al-Rahn
Al |
| An
arrangement whereby a valuable asset is places as a collateral
for a debt. The collateral may be disposed off in the event
of a default. |
| Al-wadiah
|
| Safe
keeping |
| Awkaf/Awqaf
|
| A
religious foundation set up for the benefit of the poor |
| Bai
mu’ajjal |
| Lit:
a credit sale. Technically, a financing technique adopted
by Islamic banks. It is a contract in which the seller allows
the buyer to pay the price of a commodity at a future date in
a lump sum or in instalments. The price fixed for the
commodity in such a transaction can be the same as the spot
price or higher or lower than the spot price. |
| Bai
Muajjal (Deferred Payment Contract) |
| A
contract involving the sale of goods on a deferred payment basis.
The bank or provider of capital buys the goods(assets) on behalf
of the business owner. The bank then sells the goods to the
client at an agreed price, which will include a mark-up since
the bank needs to make a profit. The business owner can pay
the total balance at an agreed future date or make instalments
over a pre-agreed period. This is similar to a Murabaha
contract since it is also a credit sale. There is a financial
institution in Malaysia that offers an Islamic Visa card based
on this type of contract. |
| Bai'muajjal |
| Deferred-payment
sale |
| Bai
al-Dayn |
| Debt
financing: the provision of financial resources required for
production, commerce and services by way of sale/purchase of
trade documents and papers. Bai al-Dayn is a short-term facility
with a maturity of not more than a year. Only documents evidencing
debts arising from bona fide commercial transactions can be
traded. |
| Bai
al-salam |
| This
term refers to advance payment for goods which are to be delivered
later. Normally, no sale can be effected unless the goods are
in existence at the time of the bargain. But this type
of sale forms an exception to the general rule provided the
goods are defined and the date of delivery is fixed. The
objects of this type of sale are mainly tangible things but
exclude gold or silver as these are regarded as monetary values.
Barring these, bai 'salam covers almost all things which are
capable of being definitely described as to quantity, quality
and workmanship. One of the conditions of this type of contract
is advance payment; the parties cannot reserve their option
of rescinding it but the option of revoking it on account of
a defect in the subject matter is allowed. It is also
applied to a mode of financing adopted by Islamic banks. It
is usually applied in the agricultural sector where the bank
advances money for various inputs to receive a share in the
crop, which the bank sells in the market. |
| Bai
Salam |
| A
sales contract where the buyer pays in advance for the goods,
which are delivered in the future. This type of financing is
most often used when a manufacturer needs capital to manufacture
a final product for the buyer. In return for paying in advance,
the buyer receives a more favourable price (i.e. splits the
profit margin with the manufacturer). |
| Bai
al Salam |
| Contract
of sale of goods where the price is paid in advance and the
goods are delivered in the future. |
| Bai'salam
|
| pre-paid
purchase |
| Bai
Bithaman Ajil |
| This
contract refers to the sale of goods on a deferred payment basis.
Equipment or goods requested by the client are bought by the
bank which subsequently sells the goods to the client an agreed
price which includes the bank's mark-up (profit). The client
may be allowed to settle payment by instalments within a pre-agreed
period, or in a lump sum. Similar to a Murabaha contract, but
with payment on a deferred basis. |
| Baitul
mal |
| Treasury |
| Dirham
|
| Currency |
