Zakat (زكاة) is Arabic for obligatory charity (the third pillar of Islam). It constitutes a portion of wealth prescribed by...

Hawalah (also spelled hawala) is the assignment/ transfer of debt from one party (the assignor/ transferor or in Arabic al-muheel)...

Sukuk are typically structured based on some shari'ah-permissible contract (named and unnamed contracts) or a combination of shari'ah-compatible contracts. Underlying...

Muwa’adah refers to bilateral promising or exchanging promises in relation to contractual acts or intents. In other words, it constitutes...

Literally, riba means “increase”, “extra”, “addition”, “accretion”, or “growth”. It also implies anything more in measure, amount, quantity, etc, as...

Arabic (البيع على البيع) for sale (bay) over another sale (bay) transaction. It involves an attempt by a third party...

In essence, istisna'a is a debt financing instrument that, like salam, involves the sale of an object (al-masnoo') for future...

Mudaraba, in general, can be classified based on the number of involved parties as a first-tier mudaraba (simple mudaraba) and...

Options (conventional options) are derivative contracts that give the holder the right, without the obligation, to trade (buy or sell)...

Murabaha (cost-plus sale) is a type of ba’i (sale) in which the seller is under obligation to reveal the actual...