Search
Generic filters
Filter by Categories
Accounting
Banking

Islamic Finance




Ibaha


An Arabic term (إباحة) that translates as permissibility (correct spelling: ibahah). It is a principle, under shari’ah, that any act is permitted as long it is not specifically prohibited. Ibahah especially applies in muamalat (economic and commercial transactions) where a Muslim has the choice between the performance of an act or refrainment- in other words, it would be optional without any corresponding outcomes, thawab or iqab, desirable/ undesirable or pleasant/ unpleasant repercussions, in accordance with shari’ah. Such an act is described as mubah,  i.e., whatever is left for the discretion/ preference of a Muslim person, without any imposition or restriction by shari’ah.

Permissible (mubahah) acts are countless and innumerable: the essence in muamalat is permissibility (ibahah) according to the shari’ah maxim (all contracts and transactions are permissible, unless there is “substantiated” evidence indicating otherwise). Examples of mubah include the determination of profit-sharing percentages in mudarabah transactions at the discretion of the two parties (while for losses, only rab al-mal bears all potential losses if occurred unless in very specific cases- negligence by mudarib, etc.).

Ibahah is also defined as ibahah asliyah (presumed permissibility).



ABC
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*