Things which are sold by units, such as fruit

Straightness, justice, fairness, equitableness. Tech (consists of two elements): first, that a sort of balance and proportion should be maintained between the people with respect to their rights; second, that everyone's due share should be conscientiously rendered to that person. What justice (adl) really demands is balance and proportion, rather than equality in the rights of citizenship. In certain respects, equality is quite contrary to justice, such as in the moral and social equality between parents and their children or in the equality of remuneration between those doing higher services and those not so eminently engaged. What Allah has ordained is proportion and balance in the equality of rights. This order requires that to every person should be honestly rendered all moral, social, economic, legal, political and civil rights. Al-adl is a mother virtue in a Muslim society. Individuals and society as a whole have been exhorted to observe justice in all their dealings. Ant: al-zulm, which is to deprive one of one's rightful and just share.

An international bank registered in the Bahamas and entirely owned by private Muslim individuals, the bank claims to conduct its operations on the basis of the Shariah. It offers services in syndicated interest-free loans, international investment, technology transfer, trade, commodities and currency trade and development funding. Perhaps the most prestigious of the bank's recent (1984) involvements is the multimillion dollar monorail scheme linking Calgary to Edmonton (Canada). Similarly the bank is arranging financial and trading services for Powell Chemicals of the United States for Arabian Express Card-the first consumer discount and travel protection card in the Arab World-and for various other activities, such as gold and diamond mining in West Africa, wind-mill technology in Salt Lake city and tar-sand technology in Canada.

Surplus. Tech: The expression appears in the Quran (2:219), wherein people have been instructed to spend in the cause of Allah whatever is over and above their needs. Some people have also applied the concept of al-afw to the canons of taxation in the Islamic economy. According to them, the Islamic state should tax a person on the income or wealth which is over and above the basic needs of individuals.

Initiated by Saudi Arabia in 1981 to supplement and make firm the 1977 General Agreement among OIC countries, it primarily relates to liberalization of capital movements and protection of direct investments by member states.

Traditions of the Prophet relating to the Khaibar lands which he gave back to the Jews for cultivation on half share of the produce.

Relating to the law of zakat, originally meaning gold and silver, now also applicable to coins, currency notes, demand deposits, time deposits and any other form in which money may be held. The word has several other meanings in fiqh in general.

Specific worker. Tech: A full time worker who agrees to perform a certain duty for one employer exclusively; for example, a watchman, who sells his time exclusively to his employer.

Shared worker. Tech: A worker or craftsman who does not deserve his wage until he performs the duty assigned to him; for example, a washer man, a dyer or a carpenter. Such craftsmen do not sell the whole of their time; instead, they agree to perform certain functions for certain wages. They accept to perform these functions but not exclusively for any particular person. Their time is shared by all those persons who want them to perform these functions.

Wages prevalent in the market for a certain service.

Historically, peasants who held no fixed leases and were mostly landless day laborers.

Eating someone else's property unjustifiably. Tech: It is the Quranic expression for unlawful acquisition of wealth such as riba, bribery and usurpation of orphan's we etc.

Acquiring illegal property. Tech: Quranic term for bribery, especially to accept gifts for distorting divine guidance.

Reliability, trustworthiness, loyalty, honesty. Tech: An important value of Islamic society in mutual dealings. It also refers to deposits in trust. A person may hold a property in trust for another, sometimes by express contract and sometimes by implication of a contract.

Incorporated on 12 April 1984 in Karnatak (India), it has four branches, authorized capital of Rs.10 million. Paid-up capital, Rs.O.5 million.

In a contract of mudarabah, the person who acts as entrepreneur. Also used for a collector of zakat.

The official appointed to collect jizyah and kharaj, to lease fai land and superintend its cultivation. The amil would receive payment for his services from out of the revenue collected by him. He was not authorized to spend the revenue collected by him without permission.

Used in the law of zakat for tax-collectors, it includes all such officials as collectors, clerks, scribes, distributors, store-keepers, accountants, etc.

A person who holds in trust property of another person, possession of which has been passed on to the trustee by the owner himself, but the principal objective of transfer is not safe custody. For example a tenant who hires a house or a mudarib in a contract of mudarabah, etc.

A person who holds in trust property of another person with the principal objective of safe-custody.

Inhabited or cultivated land. Tech: A land belonged to a people collectively, such as a path, a canal or a river. Nobody can claim ownership of these lands except with the express permission of these people. See al-mawat.

See al-mal

Miscellaneous receipts. Tech: Miscellaneous receipts of the bait al-mal. It was a regular head of account in the bait ai-mal of the caliph and consisted of such receipts as luqatah, property of the heirless or properties of persons who had fled from the Islamic state.

It connotes six items on which riba al-fadl arises: gold, silver, dates, wheat, salt and barley. Their exchange has been conditional with equality in weight and measure and simultaneous transfer of possession, failing which it would involve riba a-lfadl. It has been held by some jurists that riba al-fadl arises only in respect of these six articles, but others have included such other articles as well which could be accepted as being similar to these six.

An accretion or addition received beyond one's due. Tech: Spoils of war, signifying that they are incidental accessions above and beyond anything that a mujahid is entitled to expect. A mujahid fights to uphold the cause of righteousness and for the supremacy of Islam; if in this fight he gets a share in the spoils of war, it is an extra favour to him. See also khumus.

Immovable property. Tech: Relating to the law of kharaj and ushr, it includes immovable property and all other allied forms of property such as minerals, treasure trove and fruits on trees, etc.

Legal contract implying an enforceable act involving a bilateral declaration, namely, the offer (ijab) and the acceptance (qabul).

One who contracts. Tech: In the law of inan partnership, the partner who enters into a transaction with a third party. The other partners are known as muwakkil. The jurisdiction of al-aqid has been defined specifically for different types of transactions. The aqid acts as the agent (wakil) of the remaining partners but not as surety (kafil) for them.

That group of people who share the blood-money liability of anyone among them.

Abandoned or dead lands without any traceable owners. See al-ard al-mawat.

A category of sulh lands, the owners of which have left it and which Muslims have taken without fighting.

Land conquered by force of arms without any agreement.

Bare or uncultivated land, especially land without fruit trees.

According to some, it consists of areas where the level of underground water stands so high that it brings moisture to deeply sunk plant roots, while others think it is the land that is watered by a sufficient supply of rainfall. Historically, these lands were . also treated as ones which did not involve human labors for irrigation. Therefore, the taxation on them was the heaviest.

Lands irrigated by water dammed up in reservoirs or from underground canals. Taxation of them was ushr or half-ushr, depending upon the investment involved in irrigation.

Land, the owner of which died without leaving an heir, which reverts to bait al-mal. It also applies as a general term to the land annexed to the bait al-mal by way of ghanimah.

Those lands which have been declared as public property.

Those lands which are owned by non-Muslims but have been conquered by Muslims either by force or by truce and have been left with the previous owners by the Islamic state. A land tax agreed to in the treaty or fixed by the state is levied on such lands.

The class of conquered lands whereby the rights of ownership have been vested in the state. In case of such lands, the cultivator is a state tenant and does not possess right of alienation or transfer. It is also known as al-ard al hawz, al-ard al-sultaniyah or al-ard li-bait al mal. 'Main sources of this type of land are (a) conquest of foreign lands not occupied by anyone at the time of conquest; (b) state accession of lands left by the heirless; (c) khumus of the conquered lands if distributed among soldiers; (d)lands conquered by storm and appropriated by the head of the. state to the bait al-mal. These types of land are meant for the benefit of those who have the right to receive benefit from the bait al-mal.

Those lands located away from habitation whose owners are not traceable or were never occupied by anybody. Such land becomes the property of the person who develops and tills it. Al-Mawat do not include (a) those lands which serve a community, such as meadows, woods for fuel, etc.; (b) those lands which are known to have such deposits of minerals as salt, coal tar and petroleum and are required for the people at large; (c) those lands declared as state pastures (hima). According to some of the jurists, in order to avoid disputes possession of such lands must be preceded by permission from the state.

Lands not owned or occupied by any identifiable person. Also known as al-ard ghair al-mamlukah. They are of three types: (a) those lands which provide common convenience to the inhabitants, such as streets, roads, drains, graveyards, mosques, grazing fields, etc., which cannot be owned by any particular person and even the state cannot impose proprietary restrictions on their use, known as al-ard fana li baladah; (b) those lands, consisting of jungles, barren fields, mountains, etc., which do not provide any common convenience, are not arable and are not owned by anyone, also known as al-mawat; (c) those arable lands not owned by anyone, also known as al-ard li-bait al-mal.

The most fertile lands of fourteenth century A.D. Spain procured by the sultan. The agricultural proceeds were the property of the ruler.

Land watered from underground canals. Tax on this land was lower than ushr, since they involved investment in irrigation.

Lands irrigated by running water (of rivers and valleys). Tech: A category of land taxed most heavily since it involved the least human effort.

Lands irrigation by rain-flooding.Tech: A category of land taxed most heavily (like ard al-saih) because it involves the least human effort for irrigation.

Lands of conquered country for which there exists a provision in the agreement of the truce.

A piece of land donated by the state to a person from out of heirless lands accessed to the bait al-mal. The done gets the right to the produce of the land after praying for the subsistence of the tillers of the land. The ownership remains with the bait al-mal.

It refers to all land owned by Muslim who pay ushr on it; the land, the owners of which accept Islam; the land of Africa; and the land of those areas which were conquered by fighting and the land distributed among soldiers of the Muslim army.

The land which Muslim assign to the welfare of the community. See also hima

Borrowed. Tech: To authorize someone to receive benefit from one's property without any consideration. It is one of the customs of Muslim society. People borrow quite frequently small articles of household goods from neighbors and relatives, which is considered as a custom to promote love and cooperation among citizens (Quran 107:7). The difference between ariyah and qard is that in the former case, the thing borrowed (which is always other than money) is to be returned in its original form, whereas in the case of qard, the loan can be, and is usually, returned in money of equivalent value.

A loan supported by a surety, guarantee or warranty.

Daily ration of wheat, barley and other food grains (including cloth) periodically distributed free among the people in the early days of Islam.

Relating to the law of inheritance, those relatives in whose line of relationship no female enters. There is no fixed share of the sabah prescribed in the Quran. If the deceased is not survived by any dhawul1araid, the whole of the property falls to the asabah, otherwise the residue of the dhawul1araid. The asabat are the following relatives: (a) sons and daughters (grandsons/ daughters in the absence of sons and daughters); (b) father, grandfather and great-grand-father, if there is no son, grandson, daughters and grand daughters); (c) in the absence of son, grandson, daughter, grand-daughter, father, grand-father, brother is an asabah including sons and daughters of the brother if the brother is not alive;(d) consanguine brother; if there is no consanguine brother.

An institution of eighth century A.D., Egypt. Guilds which worked in close collaboration with the official mint (dar al-sikkah) to uncover hoarded wealth of tombs and funerary. One-fifth of such discoveries was credited to the bait at-mal as khumus. The hoarded gold from the tombs of Pharaohs was largely brought to circulation by the efforts of such guilds.

Collectors of custom duties and akat stationed by the state on the public roads.

Annual pensions distributed among the people from out of bait al-mal during the early days of Islam.

Relating to the law of ushr, land irrigated by ainfall exclusively.

Relating to the law of zakat, animals employed for work or for tilling of land.

An agreement between the client and the supplier, where the supplier agrees to a supply a particular product on an on going basis, for example monthly, at an agreed price and on the basis of an agreed mode of payment.

Lit: a credit sale. Technically, a financing technique adopted by Islamic banks. It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in instalments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price.

A contract involving the sale of goods on a deferred payment basis. The bank or provider of capital buys the goods(assets) on behalf of the business owner. The bank then sells the goods to the client at an agreed price, which will include a mark-up since the bank needs to make a profit. The business owner can pay the total balance at an agreed future date or make instalments over a pre-agreed period. This is similar to a Murabaha contract since it is also a credit sale. There is a financial institution in Malaysia that offers an Islamic Visa card based on this type of contract.

Deferred-payment sale

1. Debt financing: the provision of financial resources required for production, commerce and services by way of sale/purchase of trade documents and papers. Bai al-Dayn is a short-term facility with a maturity of not more than a year. Only documents evidencing debts arising from bona fide commercial transactions can be traded

2. (Debt trading) The sale of debt to another party. Only documents evidencing real debts arising from bona fide commercial transactions can be traded.

This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be effected unless the goods are in existence at the time of the bargain. But this type of sale forms an exception to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this type of sale are mainly tangible things but exclude gold or silver as these are regarded as monetary values. Barring these, bai 'salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic banks. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market.

A sales contract where the buyer pays in advance for the goods, which are delivered in the future. This type of financing is most often used when a manufacturer needs capital to manufacture a final product for the buyer. In return for paying in advance, the buyer receives a more favourable price (i.e. splits the profit margin with the manufacturer).

Contract of sale of goods where the price is paid in advance and the goods are delivered in the future.

Pre-paid purchase

1. This contract refers to the sale of goods on a deferred payment basis. Equipment or goods requested by the client are bought by the bank which subsequently sells the goods to the client an agreed price which includes the bank's mark-up (profit). The client may be allowed to settle payment by instalments within a pre-agreed period, or in a lump sum. Similar to a Murabaha contract, but with payment on a deferred basis.

2. (Deferred payment sale) The sale of goods on a deferred payment basis at a price, which includes a profit margin agreed to by both parties.

Treasury

Incorporated on 7 March 1979, operations began on 22 November 1979. Authorized capital, BD23 million. Subscribed capital, BD11.5 million, and paid-up capital, BD5.75 million.

A contract of sale. Tech: Sale of definite goods or property with the free consent of parties for a definite price. It involves proposal (ijab) and acceptance (qabul).It has many types.

Sale of something to be delivered later for a price to be paid immediately. Tech: It is an alternate term for bai al-salam.

Sale of something to be delivered immediately for a price to be paid later. Tech: This is an alternate term for bai al-muajjal.

A sale in which some trees in the garden are donated by the owner to the poor who can get fresh fruit off these trees in exchange for the dry ones for household consumption and not for further sale. It is also known as bai al-araya.

Sale of idols, including the earnings of a sculptor.

Sale over the sale of another person. Tech: Attempts of a third person to sell his produce while the sale deal is in the process of being concluded between two persons. The intention of the third person is to upset the bargain. This is done usually by quoting a lower rate or pointing out defects in the goods being sold by the other seller.

A contract of sale in which a seller offers to sell for a certain price on cash but for a higher price on credit. It also applies to a situation in which a person sells merchandise for a certain price cash on the condition that the buyer will sell it back to him at a higher price on credit. Thus the first seller borrows a certain amount of money to be paid back with an increment (riba) sometime after. It is one of the contrivances to legitimize riba.

Sale of whole bales of goods on the basis of their description in an accompanying catalogue or list of contents (barama) without actually unfolding the goods. This was in vogue in Medina and other Islamic cities in the first century A.H. and was treated as permissible by the fuqaha; otherwise wholesale trade would have been impossible.

An agreement of sale which is unlawful in respect of its substance and description. For example, an agreement of sale concluded by a lunatic or a minor is batil since it does not possess the substance of the agreement which is the proposal and acceptance by a sane or major person. Similarly, an agreement to sell a dead body or alcohol is not lawful since it involves exchange of mal for something valueless (ghair mutaqawwam).

Lit: Sale of a debt for a debt. Tech: A person agrees to sell a commodity to be delivered later for a price which he already owes to the intending buyer. Thus both the price as well as the product are in the form of debts.

A sales contract in which the buyer agrees to buy for a certain price whatever a diver will bring out from the bottom of river or ocean.

Hiring of a camel to cover a she-camel.

An agreement of sale which is lawful in its substance but unlawful in respect of its description. The substance of the agreement refers to proposal, acceptance and the article of sale. The description refers to characteristics other than the substance, such as the price of the article of sale. If an agreement of sale for a definite article is concluded by proposal and acceptance but the price is not settled, the agreement would be fasid although it is enforceable (munaqad) so far as its substance is concerned.

An agreement of sale concluded by someone on the property of another without the permission of the latter.

A sale involving a risk. Aleatory sale. Tech: It is to sell a thing which one does not have in one's possession nor one expects to bring it under one's control, such as fish in the river or birds in the air. Possession is one of the basic conditions for a valid contract of sale. One cannot sell a thing which is not in one's possession; it involves risk for the buyer. Bai al-gharar is also a general term for all such sale deals which do not specify the commodity of sale or price or time of sale or where the ability of the seller to deliver the commodity is absent.

A type of business transaction prevalent in pre- Islamic Arabia where the unborn child of a camel was sold while it was still in the womb.

Sale by the urbanite for the nomadic. Tech: A type of business practice in the days of the Prophet whereby some people worked as agents of the grain-sellers from rural areas and all grain was sold through these agents. These agents earned profit both from the seller and the buyer and often deprived the cultivator of his just profit and the buyer of a just price.

A type of business transaction in pre- Islamic Arabia where the contract was concluded by the buyer throwing pebbles towards the merchandise, the one hit by the pebble becoming the object sold. (alternate term Bai' bi ilqa al-alhajar)

A contract of sale where a person sells an article on credit and then buys back at a lesser price for cash. Example: A asks a loan of $10 from B. B, instead of asking for interest on this loan applies a contrivance. He sells an article to A for $12 on credit and then buys back from him the same article for cash at $10.

A sales contract in which a person agrees to pay in lump sum in advance and receives the commodities gradually in instilment

A contract of sale in which the sale price is settled by accepting unquestionably the statement of the seller (regarding cost, etc.).

A contract of sale in which a supplier (craftsman or manufacturer) is asked to supply goods of definite specifications at agreed rates, place and time of delivery.

A postponement or delay in the payment of a debt. Tech: A type of credit sales in which on the date of the discharge of the debt the debtor seeks extension with the promise to pay something in addition. In fact the amount of debt is sold to the debtor for some profit. What is meant by this is, a man's buying a thing on credit for a certain period and when the period of payment comes and he does not find anything to pay, he says to the creditor: sell it to m_ on credit for a further period for something additional. On this the creditor sells it to him. It may also refer to a man who pays money for wheat or the like, to be given at a certain time and when the time comes the debtor says, 'I do not have wheat, etc., but you sell your debt to me on credit for a certain period with an increment'.

Sale of alcoholic drinks. It includes the preparation, filtration, carriage, storage and all allied activities, including the sale of containers and utensils of alcoholic drinks.

Conditional sale. A sales contract which provides an option to the buyer to annul it. See al-khiyar.

A sales contract which has no concealment of facts, dishonesty or doubt.

Sale of the contents. Tech: A sales contract in which a package is sold without specifying the contents.

Sale of the embryo or sale of what is in the womb of the female.

An agreement of sale which is lawful in substance and description but is concluded with the consent of a third party who does not have an absolute right of ownership over the property of the buyer or the seller. For example, bai al-fuduli.

A credit sale. Tech: A financing technique adopted by Islamic banks. It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in installments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price.

To purchase a thing when its owner is compelled under stress of want to dispose of it.

A type of business transaction whereby grains in ears are sold for dry grain.

An alternate term for bai al-gharar.

A form of sales contract prevalent in the days of the Prophet in which the buyer or the seller used to touch a piece of cloth and this very act of touching finalized the sales deal.

A contract of sale prevalent in the days of the Prophet in which the seller or the buyer would throw a piece of cloth towards the other and this very act of throwing finalized the sales deal.

An enforceable contract of sale. Tech: A contract to exchange mal when one party proposes and the other accepts it. It can be of four types: sahih, fasid, najidh or mawquf.

Selling a commodity for another commodity. Barter exchange.

Sale on profit. Tech: A contract of sale in which the seller declares his cost and profit. This has been adopted (with certain modifications) as a mode of financing by a number of Islamic banks. As a financing technique, it involves a request by the client to the bank to purchase a certain item for him. The bank does that for a definite profit over the cost which is settled in advance. Many people have questioned the legality of this financing technique because of its great similarity with riba.

Haggling, bargaining. Tech: Sale of goods at a price on which the buyer and seller agree after haggling without mentioning the cost of the seller.

It is the exchange of fresh fruits for dry ones in a way that the quantity of the dry fruit is actually measured and fixed but the quantity of the fresh fruit to be given in exchange is guessed while it is still on trees.

A public sale through auction in which the deal is struck with the highest bidder. Tech: A form of sale of merchandise in which more than one seller is interested, and before the deal is finalized some of the prospective customers start bidding up the price without the intention of buying it.

A contract of sale which does not involve any right of the third party. It is of two types: lazim (binding) and ghair lazim (nonbinding). The lazim is a contract of sale which has no options (to rescind) for any of the parties and the ghair lazim is a contract of sale which may have at least one option for any of the parties.

Credit sale with a fixed term to pay up the agreed price. This method of bai bil nasiah usually resulted in riba dealings in the pre-Islamic days and caused multiplication of the original price if not paid back at the stipulated time.

A contract of sale which is final and binding in all respects.

A sales contract prevalent in pre-Islamic Arabia in which the merchandise was sold with reference to certain mark or sign on it without the buyer knowing its exact quantity.

A contract of sale which is lawful in its substance and description. The substance of an agreement refers to proposal, acceptance and the article of sale (mabt).

It is defined as advance payment for goods which are to be delivered later. According to normal rules no sale can be affected unless the goods are in existence at the time of the bargain, but this sort of sale forms an exception to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this sale are mostly fungible things and cannot be gold or silver because they are regarded as monetary values. Barring this, bai al-salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic banks. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop (which the bank sells in the market).

Sale through documents. Tech: To buy certain goods without taking possession except through transferring of papers of entitlement. This was common in the early days of Islam and is also prevalent in the modern times in futures markets. Sale deals are concluded without physical possession of goods from one party to the other, from second to third and third to fourth, and so on. At each stage margins are added without adding any utility to the products. They are all covered under bai al-sikak. Similarly, selling only licenses and permits issued by the government is also covered by this.

A form of sales contract in which a heap of food grains (or any other commodity) is sold without measuring or weighing.

A contract of sale in which the payment has been deferred.

A sales contract which is contrary to what it appears. Tech: It is a simulated sale in which the seller pretends to have sold his property when in fact he has not. For example, a person may show that he has sold his property to his son so that the state may not confiscate it. In recent times this phenomenon was observed when in certain Muslim states the feudal lords transferred their lands to their relatives to avoid confiscation under land reforms regulations. It also refers to delaying tactics of a defaulting debtor in which he transfers his property or assets apparently to a third party for fear of creditors claiming a right on those assets against their debts. In fact the assets are not transferred to anyone but it is posed as if they have been transferred. The third party whose name is used is also made to testify such a transfer though the claim is untrue.

A sales contract whereby the buyer picks up the goods and the seller accepts the price without any explicit bargain. It is also termed as bai al muatah.

A contract of sale in which the seller agrees to sell a product at his cost.

It is getting a thing against a nominal advance on the condition that if the bargain is struck, the advance will be adjusted and if the bargain is cancelled, the seller will not return the advance. The advance being nominal, the buyer had practically no liability. He will abide by the contract if he finds it advantageous to him and will withdraw from it otherwise. The modern day options contracts in the stock exchange are covered by bai a/-urban.

A sales contract in which a seller informs the buyer his actual cost and then gives a further discount on it. Thus it is a sale at a loss.

A sales agreement in which the buyer agrees to return the goods at the same price once the agreement is concluded. It is permissible if the clause for returning the goods is not instituted before-hand. But if the said clause is the essence of the contract the agreement becomes void.

Public treasury. Tech: An institution of early and mediaeval Islam, it functioned as the central bank of the state, state insurance company and controller of domestic and foreign trade. The bait al-mal had two main categories: bait al mal al-ammah, the ordinary revenues of the state and bait al mal al-khassah, revenues accruing to the ruler from crown domains (diya al-khassah). The khalifah or his wazir would re-appropriate funds from one category of the bait ai-mal to the other. The diwan bait al-mal kept the accounts and was subject to audit by diwan al-zimam. The head of bait al mal was known as sahib bait al-mal. The sahib had the right to inspect diwan al-kharaj. Besides central bait al-mal, there were buyut al-amwal at the provinces. The khazin connected to these buyut al-amwal was responsible for taxes paid in kind and stored at other financial centers.

Private treasury of the caliph to cover his personal, family and executive expenditure. It seems that the bait al-mal al-khassah did not appear until the caliphate of Muawiyah had become more distinct under the Ottoman empire.

Public treasury of the Muslims for collecting and disbursing charity and waqf funds. Usually, it was administered by the chief qadi of the state. The funds were kept in the mosque under safe custody. The chief qadi was responsible to administer these funds strictly in accordance with the shariah.

Too little, too low, very low (price). Tech: Quranic term for exploitative decrement in value to others by traders in contracts of sale. The people of Madyan during the life-time of Prophet Shuaib used to exploit the strangers by colluding with each other and declaring genuine money (coins) of the strangers as false or spurious. The stranger would, thus, sell those coins to them at a low price. Thus they would deprive the ignorant stranger by collusion and deceit.

Relating to the law of ushr, trees which fetch their moisture from land (without any rainfall). Ushr is levied on the produce of these trees. See ard at-bal.

Relating to the law of zakat, a cow or bull engaged in tilling of land.

Incorporated on 21 February 1984. Authorized capital, US$2 million. Paid-up capital, US$ ..50 million.

Blessings. Tech: God's blessing or bounty in relation to one's worldly pursuits. It refers to qualitative growth in one's possessions.

al-Barakah International is a licensed deposit taker and the first Islamic Bank in Britain within the framework of the Banking Act of the country.

Tech: A measure of distance equivalent to 4farasikh, 4,800 dhira or 22.176 kilometers. Also used for the beast of burden which carries the mail and for the postman who used to ride that animal.

Futile, false, vain, invalid, void. Tech: A juristic expression about something which is unlawful in its substance as well as its description) (was] ). The Hanafite jurists distinguish between batil and fasid, the latter denoting something which is not inherently void but has conditions or characteristics which has made it void. Other jurists do not distinguish between batil and fasid.

Relating to the nisab for zakat, a camel that has reached eight years old and entered into the ninth year.

A form of quasi-agency in mediaeval trading. It involved a merchant who, unable personally to attend to a business affair, hands over some of his property to another party for the latter to take care of it for him. Upon completion of his task the outside party, without receiving any commission, profit or compensation in any other form returns the proceeds of the transaction to the merchant whose bidding he has done. All parties to a partnership or mudarabah contract are endowed with the right to exercise this practice freely because it is one of the accompaniments of trade. It is often practiced on reciprocal basis by the merchants for each other.

Bank Islam Malaysia Berhard, established on 1 July 1983. First Islamic Bank of Malaysia.

Relating to the nisab for zakat, a she camel in her third year.

Relating to the nisab for zakat, a she-camel in her second year.

Reverence, piety, kindness, charitable gift. Tech: To adopt a generous attitude in interpersonal and inter-institutional dealings. See also al-ihsan.

Used in the model of interest-free banking based on mudarabah, it is the ratio of the interest-free loans given by the central bank to the member banks and interest-free loans of the member banks to the public.

Bankers Ratio of Profit-sharing. Percentage share of the bank in the entrepreneur's profits on finance taken on the basis of mudarabah. It is an Islamic alternative to the interest on credit obtained by entrepreneurs.

A mode of financing adopted by banks in Pakistan. According to this agreement the bank purchases moveable or immovable property for the client with the agreement that the client would buy it back from the bank at a higher price, to be paid later by the client.

Money in an investment.

The increase in the value of your investment.

The decrease in the value of your investment.

The signing of the documents and disbursement of funds necessary to complete the property acquisition and the Co-ownership transaction.

Third-party charges related to the property acquisition or Co-Ownership transaction. These include fees for property appraisal, credit report, title search and abstract, flood certification and tax service, notary, and document preparation, title insurance premium, realtor commissions, state and local recording and transfer taxes, and attorney fees.

The investor that purchases a percentage of the property from a seller to facilitate the Purchaser's acquisition of the property or to facilitate a Mortgage Replacement transaction.

An agreement between the Purchaser and the Co-owner that reflects the duties of the parties to each other.

One of the proposed monetary policy tools for a riba-free economy. The central bank may open investment accounts in its member banks in which it deposits whatever money it creates and from which it withdraws whatever money it retires. Member banks may invest these deposits in the real sector in accordance with the investment policy of each bank. Profits earned on such deposits may be used to cover the cost of central bank operations. Such deposits, termed as CDs or central deposits, may be used both as a tool of monetary policy and a means of financial intermediation. The central bank may create an instrument which could be termed as 'central deposit certificate' or CDC. The CD's may be invested in CDs throughout the banking system. The rate of return on the CD's will approach the average rate of profit on investment for the whole economy. The central bank may keep CDs in foreign exchange with banks members, should it have a surplus of foreign exchange. The central bank may issue CD's denominated in foreign currencies. The proceeds of foreign exchange thus collected may be invested through member banks. These may be utilized to meet foreign exchange requirements. The central bank may use CDs to supply domestic currency in return for foreign exchange earnings of the residents. This would keep the nominal supply of money from increasing beyond the desired level.

An instrument of riba-free banking. The certificate would be offered by the central bank to the general public and would denominate deposits with the central bank. The central bank will invest these with all member banks, which makes it the most diversified investment in the economy. Since it involves two layers of financial intermediation, namely, member banks and the central bank, it would be the safest instrument available.

One of the proposed monetary policy tools in riba-free economy. The central bank may issue CLCs which carry no return, but are guaranteed to be paid on maturity. This would be a medium for the public to extend their funds as qard hasan with altruistic motives. Proceeds of CLCs may be made available to member banks which would lend them to borrowers after proper assessment of future income and application of social criteria if rationing is required.

The Standing Committee for Commercial and Economic Cooperation of the OIC. Founded in 1981 in Taif (Saudi Arabia) as an organ of the OIC, COMCEC works for the Summit Conference ofthe OIC, which is held every three years.

Mudarabah. The orient lists use the term commend interchangeably with mudarabah.

A contract of mudarabah wherein the owner of capital provides the capital in the form of stock-in-trade (urud).

Currency

Currency

A necessity, or emergency. This is a condition in which aspects of the Sharia may be suspended in order to preserve life, or assure the safety of the Islamic community, or an individual.

Islamic home acquisition transaction that uses the concept of declining balances to enable Muslims and others to acquire ownership in property in compliance with Sharia and with state and federal requirements - with a co-owner which gives immediate ownership of record to consumer and obligates the consumer to buy out the Co-owner.

The amount credited to the Purchaser each month to reflect each Acquisition Payment and the total of such amounts.

debt, liability. Tech: It is a liability created by a contract, expenditure or debt. Al-dain has a definite term fixed for repayment as distinguished from al-qard, which does not have a fixed term for maturity.

A debt which has accrued without the exchange of any tangible asset. Unpaid wages of the worker, undistributed inheritance and provident funds deducted at source are some of the examples.

Relating to the law of zakat, it refers to the debt expected to be returned by the debtor. In other words, it refers to debts assessed to be good as against bad debts (dain ghair marju al-ada). It is also known as dain thabit.

Deferred debt. Tech: Debt in the pre-Islamic days, with the creditors' stipulation of an increase in the amount for increase in term of repayment. The deferred debt, added to which were the continuous increases over the subsequent terms, would double and re-double.

Claims against an estate which exceed or equal its value.

A debt not bound to the physical person of the debtor but outliving him.

A debt which has accrued as a result of exchange of a tangible asset such as a loan or trade.

Relating to the law of zakat, it refers to a small bucket tied to the cattle working on a well to irrigate land. Half ushr (5 per cent) is levied on lands irrigated by al-daliyah. It is also known as al-naura.

Responsibility, guarantee, warranty, surety. Tech: Surety against and responsibility for all insurable risks as well as uncertainty. The shariah has made the responsibility of the entrepreneur to cover all these risks since he is the one who receives the profit. There cannot accrue any lawful profit to someone who refuses to accept these risks.

Surety by the seller against any defect in the title of the property.

An agreement whereby a person undertakes to indemnify another person if the latter suffers a loss during a journey, pro_ vided that the traveler undertakes the journey on the same route' as identified by the indemnifier.

Surety for loss. Teeh: Standing surety for someone's loss in a business. An application has been made of this principle in the case of , riba-free banking. The state cannot hold out a guarantee to the depositors of a riba-free bank to make good any loss in the deposits through mudarabah or shirkah with the bank.

Liability for making-up any loss. It relates to contract for deposits or in riba-free banking. The , riba-free bank is liable to make up any deficiency in the demand deposits of the creditors. The bank is also liable to make up the losses, in case a loss occurs due to violation of the terms of a particular investment deposit. Both the situations are governed by the juridical concept of daman al-naqs.

Guarantee to make good any loss which may occur to the property of someone while in safe custody of the guarantor. The term has been applied in the model of , riba-free banking where the bank guarantees demand deposits against any loss.

Surety by the seller to the purchaser against any dispute about the property by a third party or by the seller himself.

An ancient coin, a small coin. Tech: A coin of silver equal to eight grains of barley or 0.496 grams.

Lands over which there is a peace treaty between the Muslims and the non-Muslims.

The lands of non-Muslims who have declared war against Muslims.

The land of Muslims where they live in peace and according to Islamic principles.

A holding company, registered in the Bahamas with a paid-up capital of US$1 ,000 million contributed by the promoters and the public in Muslim countries. The affairs of the DMI are conducted under the direction of an eighteen-member board of supervisors. Administration of the business affairs of the DMI is entrusted to Dar al-Mal al-Islami, S.A. (DMISA), a corporation formed under the laws of the Canton of Geneva, Switzerland. All the shares of the DMISA are owned by the DMI. The DMI operates through Islamic banks, investment and insurance companies. The DMI invests in banking companies as well, provided that it is allowed to hold 51 per cent of the equity. The DMI claims to run its affairs on an interest-free basis. A board of shariah scholars supervises the legality of the DMI's business in the eyes of the shariah. The investment companies of the DMI accept deposits on various terms. The DMI acts as a mudarib and the depositors are treated as arbab al-amwal. The insurance companies of the DMI, known as takaful or solidarity companies cover known losses. The membership of these companies brings all the members into a union of brotherhood where the loss of one is made up by others. The premiums received are invested in lawful business. Any profits are also distributed among all the members, DMI keeping a small commission for its services.

Levies imposed by an Islamic state on its citizens at times of such emergencies as natural calamities, famine, war, etc. These taxes were levied only when normal sources of revenue were inadequate to meet the immediate expenses.

The five fundamental needs. Tech: Five basic needs of every Muslim, namely, protection of life, religion (din), reason (aql), progeny and property. They have also been termed as maqasid al-shariah, i.e., the main objectives of the shariah. An Islamic state is supposed to cater for these basic needs of all its inhabitants, should the individual, the family or his community be unable to do it.

Relating to the law of inheritance, relations connected through females. They get a .share in the absence of dhaw-u ljaraid and asabat. The following relatives come under this category:

1. Son of the daughter and daughter of the daughter.

2. Son of the daughter of the son, and daughter of the daughter of the son and their children.

3. Maternal grandfather, maternal grandfather of the father, the grandfather of the mother, maternal grandfather of the mother, the grandmother of the mother, children of the sisters, sisters of the father and those of the mother, etc.

Relating to the law of inheritance. These are the people whose shares have been defined in the Quran. They are twelve in number; (a) four males: father, grandfather, uterine brothers and husband; (b) eight females: wife, daughters, son's daughter, mother, grandmother, full sister, consanguine sister, uterine sister.

Lands in possession of dhimmis in exchange for land taxes. Also known as ard al-kharaj.

Non-Muslims who came under the protection of the Islamic state after fighting and accepting the defeat. They are to be distinguished from al-muahid (contractees) who agreed to live under Muslim protection as a result of some peace agreement. Al-Muahids are liable to pay tax according to the agreement whereas al-dhimmis are subject to jizyah.

See Dubai Islamic Bank.
See mal al-dimar.

A monetary unit. Tech: Gold coin weighing one mithqal, equivalent to 4.25 grams.

Copper dinar in circulation during Nasrid Spain (fourteenth century AD). It was used for day-to-day internal exchange and carried a fixed monetary value.

Golden dinar in circulation during Nasrid Spain. Usually of 2 grams in weight, containing 22 carats gold. The gold dinar was mostly used in the international trade in those days. It was equal to 5 to 7 silver dinars or 75 silver dirhams.

Silver dinar in circulation during Nasrid Spain, usually equal to 1/15th to 1/7th of a gold dinar. Silver dinars were of square shape and seem to have been issued by Nasri rulers with fixed monetary value as compared to gold dinars, which had a fluctuating market price.

A weight of varying magnitude. Tech: A weight to weigh commodities. One dirham equals 3.171 grams.

A weight of varying magnitude. Tech: Silver coin weighing one dirham. Equal to the weight of70 grains of barley or 2.97675 grams.

Account books of the treasury. Tech: The finance department of early Muslim states. Initially established by caliph Umar as a department to manage state finances, but later on adopted by Muslim states on a regular basis. The entire economic activity came to be co-ordinated through diwan bait aI-mal being one of its wings. During the Abbaside period the diwan became a generic name for a department. Each department came to be designated as diwan relating to specific functions. Each diwan had two sections: al-asl (shortened from majalis al asl or diwan al asl) and al-zimam. The former was the main office while the latter was a supervising bureau (and was also called diwan al-ishraf because of that reason). The asl section was responsible for preparing the departmental budget and its execution while al-zimam was responsible for audit and control. In addition to a zimam section with each department, there was a zimam for public undertakings or state property

A supreme audit office established by Abbasides to control and check the accounts of other diwans. This was also termed as diwan zimam al-azimmah.

A department during the Abbaside period responsible for distributing that part of zakat on which the poor needy and the awqaf had a claim.

Central board for the management of personal estates of the caliph during the Abbaside caliphate.

A department for controlling local mints. Originally started by Ummayyads, it grew into a modern day central bank. It kept an eye on the circulation of money and granted concession of coinage.

Finance department of the central government during the Abbaside period. It had a number of wings. Majalis al-asl (where the chief used to sit) was responsible for drawing financial estimates. There was majalis al-hisab for reviewing the provincial accounts before they were ratified in the majalis alj'amaah, the bureau for closing the accounts of local buyut al-amwal. Then there were majalis ai-sudan, probably a bureau for drafts or perhaps for keeping registers and majalis al-tafsil which kept specified charts over individual tax-payers, their circumstances, yields, and correspondence regarding their problems. Finally, it contained majalis al-jaysh that kept an eye on the military participation on tax levy and the tasabbub that flowed to them. Diwan al-kharaj functioned independently of other departments. It acted as an audit office over the wazirs, and also looked after the agricultural and economic productivity of the provinces.

Provincial department of revenue which kept registers defining each province and indicating how it had been annexed to the Muslim state, whether by anwah or sulk. Registration covered the status of land taxation at various points, indicating whether the payments were kharaj or ushr, whether kharajwas considered as rent or as ajizyah, the survey of the land with the names of holders, the type of kharaj assessment, whether it was misah or muqasamah, and the fixed rate of kharaj in the case of misahah or the proportion of yield in case of muqasamah. Moreover, sufficient information was kept about the mines and their payments or the ushur of trade. The payers of the jizyah were also listed.

See diwan al-musadarin.

A department during the Abbaside period which dealt with matters concerning those officials who were called to account for the way in which they discharged their duties and in consequence were penalized and sometimes deprived of their property. The methods employed at musadarah might range from a polite discussion in which the accused might voluntarily submit to pay a fine, to torture and even loss of life. The diwan was also responsible for the management of confiscated properties. Therefore, in certain cases it was also known as diwan almaqbudat.

An administrative office established by the Ummayyads to administer state lands, including government properties in cities and villages and their rents. It is likely, however, that this diwan was a small department attached to the larger and more important diwan al kharaj.

An office established by early Abbasides to manage the expenditure of the state as they related to the requirements of the court. It dealt with the salaries of the court officials, provisions, construction and repair of royal buildings and care of stables. As many of the expenses in this department went to the retinue of the khalifah, it was also called diwan al-ahsham. It was divided into majalis al1lln', the place where the pay of the ahsham was disbursed, the majalis al-inzal from where the household of. the khalifah was financed and where accounts were settled with the merchants, who paid in the wazifah, and where the natural products grown upon the governmental diya were delivered and controlled. It also had majalis al hawadith responsible for extraordinary expenses.

An office set up by early Abbasides to act as agent for collection of all revenues and taxes from the agricultural lands of Iraq.

Central board for the management of sawafi lands during the Abbaside period.

Relating to the administration of iqta in India of the sixteenth century. It was the central accounts office which was also the chief auditing authority of the revenue receipts of the provincial iqta.

Private estates either belonging to the crown or to private owners. In contradistinction to private estates, the crown estates were also called diya al-sultan or diya al-khalifah. These consisted of confiscated estates as well as such estates that had been purchased.

Also known as diya al-mustakhlisah, they were private estates belonging to the crown. The income from them accrued to the bait al-mal al-khassah.

Depositors' Rate of Profit-sharing. In interest-free banking, percentage share of depositors in the profits accruing to th_ banks. It is an Islamic alternative to interest on saving bank deposits.

An arrangement according to which capital is advanced to an intermediary (be it a bank, a finance corporation or business firm), on the basis of mudarabah which further gives this capital to a third party again on the basis of mudarabah. In this way two independent contracts take place. The intermediary (say I) enters into contract with the one who advances money on the basis of mudarabah (say S), and the one who takes it on the basis of mudarabah (say E). The profit from the business of E, shall be distributed between 'E' and 'I' in a given proportion, but any loss on the capital shall be borne by'!' alone. Similarly, any profit earned by'!' shall be shared by'S' and 'I' in a predetermined ratio but any loss to'!' shall be borne by'S' alone. In this way'!' acts as agent, and E sub- agent of S.

Incorporated on 10 March 1975. Has three branches in UAE. Authorized capital, 50 million dirhams (fully paid-up).

Purchase or lease of kharaj land by a Muslim which was originally banned.

Used in relation to riba-free financing by some writers, who profess that profit-loss sharing should not be proportionate to face-value of capital but should be pro-rata 'effective capital'. The sum of effective capital is to be a factor of exposure to risk and period of investment. It would be arrived at by multiplying the face-value of capital by a 'risk exposure factor'. The share of profits of a particular class of capital to the total profits will bear the same ratio as the effective capital of that class bears to the total effective capital. See also risk exposure factor.

See al-muqataah.