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Al-Ribh


In the context of selling (al-ba’i or al-bay’– البيع), al-ribh (in Arabic script: الربح) refers to the difference resulting from selling products and services for more than the cost of production/procurement. In the realm of investing (istithmar– الاستثمار), it constitutes the positive difference between the selling price and the purchase price of commodities or securities. Entitlement to profit (al-ribh) depends on risk taking (mukhatarah), on the basis of the shari’a maxim (qa’edah shar’iyyah):”al-kharaj bi al-dhaman“- الخراج بالضمان.

Technically speaking, al-ribh may either mean profit or gross earnings, as the context dictates.

The opposite of al-ribh is al-khasarah (خسارة).



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