You can find some of the popular glossary about Islamic Finance as follows:
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 `ala
ruqyah 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`u baina `aqd
al-qardh wa `aqd
al-mu`awadhah
Combination of a loan contract and an exchange contract.
Al-muqasah
Offsetting by mutual agreement of contracting parties.
Al-wa`d bi al-tamlik
Promise to own or acquire ownership.
Bai` `inah or
Bai` al-`Inah
Sale contract followed by repurchase by the seller at a different price. (BNM)
***
A financing facility involving two separate contracts. In the first contract a financier sells an asset to a customer on deferred payment terms. Immediately after, the financier repurchases the same asset from the customer on cash terms at a price lower than that of the deferred payment sale.
It can also be applied vice versa where a financier buys an asset from a customer on cash terms. Immediately after, the financier sells back the same asset to the customer on deferred payment terms at a price higher than that of the cash sale. (IBFIM)
***
A contract involving the sale and buy -back transaction of assets by a seller. A seller sells an asset to a buyer on a cash basis and later buys it back on a deferred payment basis where the price is higher than the cash price. It can also be applied when a seller sells an asset to a buyer on a deferred basis and later buys it back on a cash basis, at a price which is lower than the deferred price. (SCM)
Bai` dayn or
Bai` al-dayn
Sale of debit (BNM)
***
Refers to the buying and selling in the secondary market of debt certificates, securities, trade documents and papers that conform with the Shariah. The trade documents are issued by debtors to creditors as evidence of indebtedness. Only documents evidencing real debts arising from bona fide merchant transactions can be traded. (IBFIM)
***
A transaction involving the sale and purchase of securities or debt certificates which conforms with the Shariah. Securities or debt certificates are issued by a debtor to a creditor as evidence of indebtedness.(SCM)
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 bai` al-dayn bi al-dayn.
Bai` bithaman ajil
Sale contract based on deferred payment at certain price. (BNM)
***
A contract of sale and purchase for the financing of an asset on a deferred payment and installment basis with a pre agreed payment period. The sales price includes a profit margin. (IBFIM)
***
A contract which refers to the sale and purchase transaction for the financing of assets on a deferred and instalment basis with a pre -agreed payment period. The sale price will include a profit margin. (SCM)
Bai istijrar or
Bai` al-istijrar
A contract between a supplier and a client whereby the supplier supplies a particular item on an ongoing basis on an agreed mode of payment until they terminate the contract. It is also applied between a wholesaler and a retailer for the supply of a number of agreed items. (IBFIM)
***
A contract whereby the supplier agrees to supply a particular product on an ongoing basis, e.g. monthly, at an agreed price and an agreed mode of payment. (SCM)
Bai istisna'
A purchase order contract where a buyer orders a seller or contractor to manufacture an item according to specification in the purchase contract to be delivered on a certain future date. The settlement of the purchase price is according to the agreement between the two parties.
Bai` mu’ajjal
Refer bai` bithaman ajil.
Bai murababah (cost plus) or murababah
A sale based on cost price where the cost price, the profit margin and other costs to the seller are stated at the time of the contract. The settlement of the price is normally made on deferred lump sum payment terms.
Bai` muzayadah or
Bai` al-muzayadah
Sale contract based on bidding or auction. (BNM)
***
A sale of an asset in public through the process of bidding among potential buyers and the asset is sold to highest bidder. (IBFIM)
***
An action by a person to sell his asset in the open market, which is accompanied by the process of bidding among potential buyers. The asset for sale is awarded to the person who offers the highest price. It is a sale and purchase transaction based on tender. (SCM)
Bai` salam or
Bai` al-salam
Sale contract based on order of 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. (BNM)
***
A purchase contract for the delivery of an item on a certain future date with the full payment of the purchase price in cash at the point of contract. (IBFIM)
***
A contract whereby payment is made in cash at point of contract but delivery of asset purchased is deferred to a pre -determined date. (SCM)
Bai` wadhi`ah
Sale contract with a price lower than acquisition cost.
Bai wafa' or
Bai` al-wafa'
A contract with the condition that when the seller pays back the price of the property sold, the buyer returns the property to the seller. It is a Bai in form but a pledge in substance. (IBFIM)
***
A contract with a condition that when the seller pays back the price of the goods sold, the buyer returns the goods to the seller. (SCM)
Bai`atain fi al-bai`ah
Two sales contracts within one sale contract.
Dayn ghair thabit
Debt which is not yet established.
Dayn mustaqir
Debt which the liability to pay is established.
Dayn thabit
Debt which is fixed.
Dhaman or Kafalah
Guarantee. (BNM)
***
A contract of guarantee where a person underwrites any claims or obligations that should be fulfilled by a debtor, supplier or contractor in the event that the debtor, supplier or contractor fails to fulfill his obligation. (IBFIM)
***
A contract of guarantee whereby a guarantor underwrites any claim and obligation that should be fulfilled by the owner of an asset. This concept is also applicable to a guarantee provided on a debt transaction in the event a debtor fails to fulfil his debt obligation. (SCM)
Dharar
Harm.
Dhawabit
Guidelines.
Dho` wa ta`ajjal
Reducing the amount of debt when the debtor makes early settlement.
Facultative
Retakaful agreement executed between a takaful company and another takaful company (including conventional insurance company), and the takaful company which 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 (BNM)
***
An unknown fact or condition. In a commercial transaction, the fact or condition of either of the contracting parties or the item in the contract or the price of the item is not known giving rise to an uncertain status or result of the contract, i.e. whether it is valid or void. An excessive gharar makes a contract null and void. (IBFIM)
***
Gharar is an element of deception either through ignorance of an essential element of the goods, the price, or through faulty description of the goods, in which one or both parties stand to be deceived. E.g. gambling is a form of gharar because the gambler is ignorant of the result of the gamble.
Gharar is divided into three types, namely gharar fahish (excessive), which vitiates the transaction, gharar yasir (minor) which is tolerated and gharar mutawassit (moderate) which falls between the other two categories. Any transaction can be classified as forbidden activity because of excessive gharar. (SCM)
Gharar yasir
Minimal uncertainty.
Ghasb
Confiscation or unlawful seizure of property.
Ghish, ghurur
Cheating, fraud, deception. Both are prohibited by the Shariah.
Hajah
Need.
Haq maliy
A right on a financial asset. Examples of rights are haq dayn (right to the claim of a debt) and haq tamalluk (right of ownership). (IBFIM)
***
Haq maliy is a right on the financial assets, e.g. haq dayn (debt rights) and haq tamalluk (ownership rights). (SCM)
Hamish jiddiyyah
Security deposit.
Hibah
Gift, something given to a person without exchange. (IBFIM)
***
A gift awarded to a person. (SCM)
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.
Hiwalah
A contract of transferring a debt obligation from the debtor to a third person. (IBFIM)
***
A contract which allows a debtor to transfer his debt obligation to a third party. (SCM)
Ibra’
Rebate/waiver of partial or total claim against certain right or debt. (BNM)
***
Giving up of a right. In a commercial transaction a creditor gives up part or all of his right to a debtor usually for early settlement of the debt. (IBFIM)
***
An act by a person to withdraw his rights to collect payment from a person who has the obligation to repay the amount borrowed from him. (SCM)
Ibra’ mu`allaq
Ibra’ which is subject to certain condition and if the condition is satisfied, the ibra’ will be given.
Ibra’ muqayyad
Ibra’ which is limited by certain condition.
Ijarah
Lease or service contract that involves benefit/usufruct of certain asset or work for an agreed payment or commission within an agreed period (BNM)
***
A sale or purchase of usufruct. A sale or purchase of the use of another person's property. The ownership of the property remains with the lessor while the lessee only owns the right of the use of the property. (IBFIM)
***
A manfaah (usufruct) type of contract whereby a lessor (owner) leases out an asset or equipment to a client at an agreed rental fee and pre -determined lease period upon the `aqd (contract). The ownership of the leased equipment remains in the hands of a lessor. (SCM)
Ijarah muntahia bi
al-tamlik
Lease contract which ends with acquisition of ownership of the asset by the lessee.
Ijarah thumma bai
Refers to an Ijarah (leasing/renting) contract to be followed by a Bai (purchase) contract. Under the first contract, the hirer leases the property from the owner at an agreed rental over a specified period. Upon expiry of the leasing period, the hirer enters into a second contract to purchase the property from the owner at an agreed price. (IBFIM)
***
A contract which begins with an ijarah contract for the purpose of leasing the lessor's asset to the lessee. Consequently, at the end of the lease period, the lessee will purchase the asset at an agreed price from the lessor by executing a purchase (bai`) contract. (SCM)
Ijtihad
Rigorous thinking and efforts by scholars who have attained the degree of mujtahid in order to issue certain Shariah ruling definitely in a matter which is not clearly provided in al-Quran or Sunnah.
`Illah
Effective cause.
Isqat al-haq
Waive of right.
Istiqrar ta`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). (BNM)
***
A purchase order contract of assets whereby a buyer places an order to purchase an asset to be delivered in the future. The buyer requires the seller or a contractor to construct the asset and deliver in the future according to the specifications given in the sale and purchase contract. Both parties decide on the sale and purchase prices and the settlement can be delayed or arranged based on a schedule of work completed. (SCM)
Istisna` muwazi
Parallel istisna’.
Ittifaq dhimni
An agreement between parties concerned on the sale price and repurchase price of an asset prior to the execution of the sale and repurchase contracts for the purpose of bidding process in Bai' Muzayadah (bidding or auction). (IBFIM)
***
A sale and repurchase of an underlying asset whose prices are agreed by the parties prior to the completion of the contract. This is an agreement which must be reached before the contract can be concluded to allow for the bidding process ( bai` al-muzayadah) to take place. (SCM)
Ittifaqiyyah
Mutual agreement.
`Iwad
Consideration.
Ji`alah or Ju`alah
A unilateral contract promising a reward for the accomplishment of a specified task. (IBFIM)
***
Contract of reward, a unilateral contract promising a reward for a specific act or accomplishment. (SCM)
Jumhur
Majority.
Kafalah
Guarantee.
Kafalah bi al-ujr
Guarantee with fee.
Kafil
Guarantor.
Khilabah
A form of fraud, either in words or deed by a party to a trading contract with the intention of inducing the other party to make a contract. This is prohibited by the Shariah.
Khiyanah
A breach of trust, betrayal or treachery. It is prohibited by the Shariah. (IBFIM)
***
Deception, by not disclosing the truth or breaching an agreement in a hidden way. This is prohibited according to the Shariah. (SCM)
Maisir or Maysir
Gambling. Any activity that involves betting money or an item on the outcome of an unpredictable event. The bet is forfeited if the outcome is not as predicted by the bettor and the person against whom the bet is made takes the bet. This activity is prohibited by the Shariah. (IBFIM)
***
Any activity that involves betting whereby the winner takes the bet and the loser loses his bet. This is prohibited according to the Shariah. (SCM)
Makful `anhu
Guaranteed party.
Makful lahu
Recipient of guarantee or beneficiary
Mal
A thing which is naturally desired by man, and can be stored for times of necessity; it has use and it is permissible by the Shariah to enjoy its benefit. (IBFIM)
***
Something which has value and can be gainfully used according to the Shariah. (SCM)
Mani` syar`ie
Shariah impediment.
Marhun
Charged property.
Maslahah
Public interest.
Masnu`
Manufactured item.
Maysir or Maisir
Refer to Maisir.
Mu`ayyan bi al-zat
Clearly identifiable and determinable in terms of location, quantity and quality.
Mubara’ah
Mutual waiving of right.
Mudarabah or Mudharabah
(trustee financing)
Profit sharing contract. (BNM)
***
An agreement between a provider of fund who provides 100% capital for the financing and an entrepreneur who manages the business applying his expertise; profit is to be shared between them according to an agreed ratio, while loss is to be borne solely by the provider of capital. (IBFIM)
***
A contract made between two parties to finance a business venture. The parties are a rabb al-mal or an investor who solely provides the capital and a mudarib or an entrepreneur who solely manages the project. If the venture is profitable, the profit will be distributed based on a pre -agreed ratio. If the business is a loss, it will be borne solely by the provider of the capital. (SCM)
Mudarib
Entrepreneur of a mudarabah joint venture.
Mulzimah
Binding.
Muqaradah
Refer to mudarabah.
Muqasah
Offsetting. (BNM)
***
Debt settlement by a contra transaction; setting off. (IBFIM)
Muqtada al-`aqd
Objective of the contract.
Murabahah or
Bai murababah
(cost plus)
Sale contract with a disclosure of the asset cost price and profit margin to the buyer (BNM)
***
A sale based on cost price where the cost price, the profit margin and other costs to the seller are stated at the time of the contract. The settlement of the price is normally made on deferred lump sum payment terms. (IBFIM)
***
A contract referring to a sale and purchase transaction for the financing of an asset whereby the cost and profit margin (mark -up) are made known and agreed to by all parties involved. The settlement for the purchase can be settled either on a deferred lump sum basis or on an instalment basis, and is specified in the agreement. (SCM)
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 or
Musharakah
(joint venture)
Profit and loss sharing. (BNM)
***
An agreement between two or more parties whereby all parties contribute capital either in the form of cash or in kind to form a company to carry on commercial activities. The profit is shared based on equity participation or as agreed between the parties; loss is shared according to equity participation. (IBFIM)
***
A partnership arrangement between two parties or more to finance a business venture whereby all parties contribute capital either in the form of cash or in kind. Any profit derived from the venture is distributed based on a pre -agreed profit sharing ratio and a loss is shared on the basis of capital contribution.(SCM)
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.
Qabadh or qabd or qabdh
Possession over a particular asset. (BNM)
***
Qabadh means taking possession. Generally qabadh follows urf, viz. the common practices of the local community where it varies from one kind of good to another recognizing the way the possession of a good takes place. (IBFIM)
***
Qabdh means possession, which refers to a contract of exchange. Generally, qabdh depends on the perception of `urf or the common practices of the local community in recognising that the possession of a good has taken place. (SCM)
Qard
Loan contract.
Qard hasan or
Qardh hasan
Benevolent loan. (BNM)
***
It is a benevolent loan, i.e. a loan contract between two parties with no extra payment over and above the loan. Any extra payment imposed by the lender or promised by the borrower is prohibited. However the borrower is permitted to pay extra on payment at his absolute discretion as a token of appreciation.
It is also used as a name for a kind of borrowing with collateral.(IBFIM)
***
A contract of loan between two parties on the basis of social welfare or to fulfil a short - term financial need of the borrower. The amount of repayment must be equivalent to the amount borrowed. It is, however legitimate for a borrower to pay more than the amount borrowed as long as it is not stated or agreed at the point of contract. (SCM)
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. (BNM)
***
An act whereby a valuable asset is used as a collateral for a debt. The collateral will be used to settle the debt when a debtor is in default. (SCM)
Rahnu
Making a property a security for a debt or a right of claim, the payment in full of which is permitted from the sale of the property in the event of default by the debtor.
Rahn al-musya`
Charge on a jointly owned asset.
Rahn rasmi
Surrender of charge via formal record in the registry of the authority.
Riba
In lending, it is the extra payment imposed by the lender or promised by the borrower over and above the loan. In trading it is mostly the difference in weight in the exchange of gold of different measures of purity, e.g. 10g. of 750 gold with the 8g. of 835 gold; or the difference in time between payment and delivery in foreign currency exchange, e.g. payment of RM10,000 at 10.00 a.m. and delivery of USD3,800 at 3.00 p.m on the same date. (IBFIM)
***
An increase, in a loan transaction or in exchange of a commodity, accrued to the owner (lender) without giving an equivalent counter value or re-compensation in return to the other party. It covers interest both on commercial and consumer loans, and is prohibited according to the Shariah. (SCM)
Sadd zarai`
Shariah approach in blocking the means that may lead to a person’s involvement in forbidden matters.
Sarf
A contract of exchange between two currencies. (IBFIM)
***
A buying and selling of currencies. (SCM)
Sighah
The pronunciation of offer and acceptance.
Shariah, Sharia,
Siyasah or Syar`iyyah
Basis and approach taken by the ruler for the interest of the nation and the people which is in line with Shariah principles. (BNM)
***
Shariah means fiqh or Islamic Law comprising the whole body of rulings pertaining to human conduct derived from the rulings' respective particular evidences. The respective particular evidences are the sources of the Shariah, the primary sources being the Quran, the Sunnah, ijma' and qiyas, the secondary sources being the method of reasoning applied by Muslim jurist in their ijtihad (personal reasoning). (IBFIM)
***
Islamic law, originating from the Qur`an (the holy book of Islam), and its practices and explanations rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit). (SCM)
Shariah requirement
It is a general phrase or expression which generally means abstinence from prohibition and fulfillment of essential elements and necessary conditions in performing a human act.
Suftajah
Bill of Exchange. (IBFIM)
***
A credit instrument issued to enable a creditor to use or cash it at another pre - determined venue and at a future date. (SCM)
Sukuk
Islamic securities/bonds. (BNM)
***
Plural of sok. It is being used as singular. It is a document or certificate evidencing an undivided pro rata ownership of an underlying asset; a capital market financial instrument tradable in the secondary market. (IBFIM)
***
A document or certificate, documenting the undivided pro-rated ownership of underlying assets. The sak(singular of sukuk) is freely traded at par, premium or discount. (SCM)
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. (BNM)
***
A compensation agreed upon by the contracting parties as a payment that can be claimed by the creditor when the debtor defaults in the payment of his debt. (IBFIM)
Tabarru`
Voluntary donation \ contribution.
Tadlis al-'aib
An act of a seller intentionally hiding the defects of goods; it is prohibited by the Shariah. (IBFIM)
***
Refers to the activity of a seller intentionally hiding the defects of goods. This activity is prohibited according to the Shariah. (SCM)
Takaful
A scheme which 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. (BNM)
***
It is a protection plan based on Shariah principles. It is Islamic insurance. A person becomes a participant by undertaking a contract of tabarru' and paying a participative contribution (tabarru') to a common takaful fund whereby he allows his contributions to be used to help other participants whenever they suffer defined losses. The commercial contracts of Mudharabah and Wakalah are incorporated into tabarru' contracts to increase the size of the takaful fund. (IBFIM)
***
A form of Islamic insurance based on the principle of ta`awun or mutual assistance. It provides mutual protection of assets and property and offers joint risk sharing in the event of loss incurred by one of its members. Takaful is similar to mutual insurance in that members are the insurers as well as the insured. (SCM)
Outward retakaful
Distribution of underwritten risks by a takaful company to another takaful company or a conventional insurance company.
Inward retakaful
Acceptance of risks by a takaful company from another takaful company.
Taklufah
Actual cost.
Takyif
Adaptation.
Takyif fiqhi
Fiqh adaptation.
Tanajush
A conspiracy between a seller and a buyer wherein a buyer purchases an item from the seller at a price higher than that of the market thereby enticing other buyers to buy the items at a price higher than the market price. The seller thus makes a big profit. This is prohibited by the Shariah. (IBFIM)
***
Refers to a conspiracy between a seller and a buyer wherein the buyer is willing to purchase the goods at a higher price. This is done so that others would rush to buy the goods at a higher price, resulting in the seller obtaining a huge profit. This transaction is not permissible in Islam. (SCM)
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’
Pre-arrangement.
Ta`widh
Penalty agreed upon by contracting parties as compensation which can be rightfully claimed by the creditor when the debtor fails or is late in meeting his obligation to pay back the debt. (SCM)
Treaty
Retakaful 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 which had concluded the agreement shall undertake the risks.
Ujr `ala wakalah
Agency fee.
Ujrah
Commission. (BNM)
***
A payment for manfaah, usufruct on the use of another's property. Another term related to ujrah is ajr (plural ujur), which is a payment for a service. It is also applied to salary, wage, pay, fee(s), charge, enrolment, honorarium, remuneration, reward, etc (IBFIM)
***
Financial payment for the utilisation of services or manfaat. In the context of today's economy, it can be in the form of salary, wage, allowance, commission, etc. (SCM)
Uqud ishtirak or
'Uqud al- ishtirak
Contracts of participation or partnership. (IBFIM)
***
Contracts of partnership. (SCM)
Uqud mu’awadat or `Uqud mu`awadhat or
'Uqud al- mu'awadat
Contracts of exchange.
Uqud tabarru'at or
'Uqud al- tabarruat
Contracts of gift or donation. (IBFIM)
***
Charitable contracts. (SCM)
`Uqud musamma
Contracts which 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. (BNM)
***
A deposit or earnest money paid as an installment to confirm contract. If the contract continues to its conclusion the seller realizes it as part of the selling price. If the contract fails the seller forfeits it as penalty for the breach of the contract. (IBFIM)
***
A deposit or earnest money forming part payment of the price of goods or services paid in advance, but is forfeited if the transaction is cancelled. The forfeited money is considered as hibah (gift). (SCM)
`Urf
Common practice which is acceptable by the community and does not contradict the Shariah rulings.
`Urf tijari
Common business practice which is acceptable by the community and does not contradict the Shariah rulings.
Wa`d
Promise.
Wa`d bi al-syira’
Promise to buy.
Wa`d mulzim
Binding promise.
Wadi`ah
Safe keeping contract in which a party entrusted his property to another party for safe keeping and to be returned upon request. (BNM)
***
Safe custody. Originally safe custody is Wadiah Yad Amanah, i.e. trustee custody where according to the Shariah the trustee custodian has the duty to safeguard the property held in trust. Wadiah Yad Amanah changes to Wadiah Yad Dhamanah (guaranteed custody) when the trustee custodian violates the conditions to safeguard the property. He then has to guarantee the property. (IBFIM)
Wadi`ah yad amanah
Safe keeping contract based on trust.
Wadi`ah yad dhamanah
Safe keeping contract with guarantee. (BNM)
***
Goods or deposits kept for safekeeping with another person, who is not the owner. As wadiah is a trust, the depository becomes the guarantor and guarantees repayment of the whole amount of the deposits, or any part thereof outstanding in the accounts of the depositors, when demanded. The depositors are not entitled to any share of the profits but the depository may provide returns to the depositors as a token of appreciation. (SCM)
Wakaf
A form of endowment by an owner of a property for public benefit and wellbeing which is allowed by Shariah.
Wakalah
Agency contract. (BNM)
***
A contract of appointment of an agent where a person appoints another as his agent to act on his behalf. (IBFIM)
***
A contract which gives a person the power to nominate someone to act on his behalf, as long as he is alive, based on the agreed terms and conditions. (SCM)
Wakalah bi al-istithmar
Agency contract for investment.
Wasi
A person appointed to execute a will.
Zakat
A religious obligation of alms-giving on a Muslim to pay 2.5% of certain kinds of his wealth annually to one of the eight categories of needy Muslims. (IBFIM)
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A tax, which is prescribed by Islam on all persons having wealth above a certain amount at a rate fixed by the Shariah. According to the Islamic belief zakat purifies wealth and souls. The objective is to take away a part of the wealth of the well-to-do to distribute among eight categories of people stated in the Quran. (SCM)
Zari`ah ila riba
Means leading to riba.
Zan al-ghalib
Presumption that is closer to certainty.
Zimmah
Liability.
Sources:
Bank Negara Malaysia
Security Commission Malaysia
Islamic Banking and Finance Institute Malaysia
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