Arabic (ربا غير مباشر) for indirect riba. It is a type of riba that arises from the simultaneous exchange of commodities with unequal quantities or qualities. It reflects the quality premium that one of the parties to an exchange obtains when exchanging low quality with better quality commodities such as dates for dates, wheat for wheat, gold for gold, silver for silver, etc. In this sense, it constitutes an excess of exchange of ribawi items (ribawi goods) that belong to the same genus (genera).
Since it is associated with sale transactions, this type of riba is said to be indirect (in contrast with direct riba that relates to loan transactions). Riba ghair mubashir is prohibited by shari’ah (based on sunnah) to prevent riba from slipping into the economy.
It is also known as riba al-fadhl (riba in excess), riba al-sunnah, riba al-buyu (riba in trade), or riba al- khafi (hidden riba).
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