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Bay al-Wafa

A sale (bay') in which the seller has the right, as stipulated in the contract, to repurchase the underlying property...

Bay al-Juzaf

The sale (bay') of a measurable, countable, or weighable commodity without determining its quantity, number of units, or weight. This...

Al-Ghunm

Arabic (الغنم) for gain /reward/ benefit which can be realized only if recipient has already borne all the risks (mukhatarah)...

Inah

A transaction whereby a person buys an asset/commodity from a seller on the basis of deferred payment, and sells it...

Ba’i al-Muzabanah

A type of sale (ba’i) that involves the exchange of fresh fruits for dry ones, where the quantity of the...

Profit Equalization Reserve

A reserve that is created by an Islamic bank by appropriating a specific amount out of the mudaraba income, before...

Profit Rate Swap

An Islamic swap that entails the exchange of a floating profit rate for a fixed profit rate, or vice versa....

Ba’i al-Mulamasah

A type of sale (ba’i) that was particularly popular in the days of early Islam and pre-Islam, where the buyer...

Al-Ghurm

An Arabic term (الغرم) that literally denotes damage or loss (or a cost incurred). In a more specific context, it...

Ghurm

An Arabic term (الغرم) that literally denotes damage or loss (or a cost incurred). In a more specific context, it...