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Ordinary Murabaha

A murabaha which involves two parties, a buyer and seller, where the former is a merchant by trade. The merchant...

Operating Ijarah

An ijarah contract that doesn't end up with the transfer of ownership of leased properties to the lessee. In other...

Kafalah Munajjazah

Arabic (كفالة منجزة) for immediate kafalah (a suretyship with immediate effect). It is a kafalah agreement that takes effect as...

Kafalah Mudhafah

Arabic (كفالة مضافة) for contingent suretyship or contingent guarantee/ guaranty. It is a kafalah agreement that becomes effective upon occurrence...

Simple Mudaraba

A type of mudaraba (مضاربة) that involves a bilateral relationship between one worker (mudarib) and one provider of funds (rab...

Off-Balance Sheet Sukuk

Sukuk that are not recorded on the financial position statement (balance sheet) of the issuer. The issuer has no control...

On-Balance Sheet Sukuk

Sukuk that are recorded on the financial position statement (balance sheet) of the issuer. The issuer has control (in terms...

Bilateral Undertaking

In Islamic finance, bilateral undertaking, or muwa'adah (مواعدة) in Arabic, refers to a promise which is issued by a counterparty...

Gratuitous Contract

A non-compensatory contract in which a property (or any form of wealth) is donated by one party to another against...

Waqf al-Manafi’

Arabic (وقف المنافع) for a waqf of the usufruct (manfa'ah- manafi') of a rented property. It is a temporary waqf...