A type of guaranty (guarantee or kafalah in Arabic) in which a third-party guarantees all of a trader’s debts, as well as all non-fungibles in a possession of guaranty. This includes guaranties of debts prior to maturity as well as guaranties of unknown objects. Though it is used to facilitate commercial transactions, Kafalat-ul souq is a form of noncommercial (personal) guarantees that are mentioned in Islamic fiqh sources, with all of which constituting charitable contracts, where guarantors collect no fees in return for their services.
Market guaranty is known in Arabic as kafalat-ul souq.
