Derivatives
Swap PVBP
October 11, 2021
Islamic Finance
Habal al-Habala
October 12, 2021

Arabic (حرج) for hardship, distress, difficulty, hindrance or adversity. It is anything that leads to hardship or distress to a person (or a number of persons), negatively affecting his/ their body (bodies), spirits, well-being, wealth, etc. Haraj is all what prevents the performance of an obligatory act (fardh) or commendable act (mandoob) or leads to the committing of a prohibited act (haram).

Shari’a calls for haraj to be removed or eased out (in Quran, chapter 5- verse 6, “… Allah does not desire to place upon you any constraint (haraj) in the religion/ al-din”).

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