Islamic Finance
Sharikat al-Aqd
September 12, 2021
Finance
Funding Risk
September 12, 2021

An Arabic term (خلابة) that literally translates as “misleading marketing”. The seller, practicing khalaba, pursues unknowledgeable and unaware clients by overstating and overprojecting the quality and features of commodities.

That leads to manipulation of buyers and appropriation of their money in an unfair transaction. Therefore, khalaba is prohibited by shari’a.

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