Investment Banking
Prospectus Supplement
July 25, 2021
Islamic Finance
Hajiyyat
July 25, 2021

Arabic (هبة الثواب) for gift (hibah) conditional upon receipt of consideration (thawab). It is a gift intended to solicit some type of consideration or compensation (iwadh). In other words, it is an exchange (mubadalah) of a gift for gift (i.e., an exchange-based gift or a gift based on commutative exchange). The party given the gift has the option (khiyar) either to accept it or not. Upon acceptance, the recipient of the gift must give the giver an equivalent gift in terms of value/ worth.

In turn, the first giver (initiator of hibat al-thawab) has the option to revoke due to defect (khiyar al-ayb) which can be exercised upon receipt of no consideration (counter-gift).

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts