Search
Generic filters
Filter by Categories
Accounting
Banking

Islamic Finance




Ribh


In the context of selling (ba’i or bay‘- البيع), ribh (in Arabic script: ربح) refers to the difference resulting from selling products and services for more than the cost of production/procurement. In the realm of investing (istithmar– الاستثمار), it constitutes the positive difference between the selling price and the purchase price of commodities or securities. Entitlement to profit (ribh) depends on risk taking (mukhatarah), on the basis of the shari’a maxim (qa’edah shar’iyyah):”al-kharaj bi al-dhaman“- الخراج بالضمان.

Technically speaking, ribh may either mean profit or gross earnings, as the context dictates.

The opposite of ribh is khasarah (خسارة).



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    Your email address will not be published.*