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Islamic Finance




Uqud al-Tabarruat


Arabic (عقود التبرعات) for noncommutative contracts or gratuitous contracts. These contracts (uqud– plural of aqd) are based on voluntary charitable actions/ donations (tabarruat – plural of tabarru) such as gifts (hibah/ hibat), benevolent loans (qardh hasan), simple loans (ariyah), endowment (waqf), alms (sadaqah), etc. The donor (mutabarre’) does not seek any compensation in return for the value of donation. The ownership of of a property (or valuable item) is transferred without a commutative exchange.

Uqud al-tabarruat belong to a broader class of contracts known as uqud al-tamlikat.



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