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Gharar
''Gharar'' ( ar, غرر) literally means uncertainty, hazard, chance or risk. It is a negative element in ''mu'amalat'' ''fiqh'' (transactional Islamic jurisprudence), like '' riba'' (usury) and '' maysir'' (gambling). One Islamic dictionary (''A Concise Dictionary of Islamic Terms'') describes it as "the sale of what is not present" — such as fish not yet caught, crops not yet harvested. Similarly, author Muhammad Ayub says that "in the legal terminology of jurists", ''gharar'' is "the sale of a thing which is not present at hand, or the sale of a thing whose ''aqibah'' (consequence) is not known, or a sale involving hazard in which one does not know whether it will come to be or not". Definitions, fiqh According to Sami Al-Suwailem, "researchers in Islamic finance" do not agree on the "precise meaning" of gharar, although there is not necessarily great difference among the Islamic schools of jurisprudence ( madhab) in the term's definition. The ''Hanafi'' legal school defines ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sharia And Securities Trading
The Islamic banking and finance movement that developed in the late 20th century as part of the revival of Islamic identity Usmani, ''Introduction to Islamic Finance'', 1998: p. 6 sought to create an alternative to conventional banking that complied with sharia (Islamic) law. Following sharia it banned from its practices ''riba'' (usury) – which it defined as any interest paid on all loans of money Farooq, ''Riba-Interest Equation and Islam'', 2005: p. 3–6 Khan, ''What Is Wrong with Islamic Economics?'', 2013: p. 216–226 – and involvement in ''haram'' (forbidden) goods or services such as pork or alcohol. It also forbids gambling (''maisir'') and excessive risk (''bayu al-gharar''). This meant that not only were interest-bearing loans, accounts, and bonds not allowed, but many financial instruments and activities common in conventional financial markets have been forbidden by most Muslim scholars because of their connection with ''maisir'' or ''gharar'' (and also sometime ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Banking And Finance
Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include '' Mudarabah'' (profit-sharing and loss-bearing), ''Wadiah'' (safekeeping), ''Musharaka'' (joint venture), ''Murabahah'' (cost-plus), and ''Ijara'' (leasing). Sharia prohibits '' riba'', or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to ''riba''). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also '' haram'' ("sinful and prohibited"). These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of the r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Banking
Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include '' Mudarabah'' (profit-sharing and loss-bearing), ''Wadiah'' (safekeeping), ''Musharaka'' (joint venture), ''Murabahah'' (cost-plus), and ''Ijara'' ( leasing). Sharia prohibits '' riba'', or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to ''riba''). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also '' haram'' ("sinful and prohibited"). These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Takaful
Takaful ( ar, التكافل, sometimes translated as "solidarity" or mutual guarantee) Khan, ''What Is Wrong with Islamic Economics?'', 2013: p.403 is a co-operative system of reimbursement or repayment in case of loss, organized as an Islamic or ''sharia'' compliant alternative to conventional insurance, which contains ''riba'' (usury) and ''gharar'' (excessive uncertainty). Khan, ''What Is Wrong with Islamic Economics?'', 2013: p.402 Under takaful, people and companies concerned about hazards make regular contributions ("donations") to be reimbursed or repaid to members in the event of loss, and managed on their behalf by a takaful operator. Like other Islamic finance products, Takaful is grounded in Islamic '' Muamalat'' (commercial and civil acts or dealings branch of Islamic law). In 2018, the takaful industry had grown to a size of $27.7 billion of "contributions" (from a 2011 figure of $12 billion). The movement has been praised as providing "superior alternatives" to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Economics
Islamic economics ( ar, الاقتصاد الإسلامي) refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings. Islam has a set of special moral norms and values about individual and social economic behavior. Therefore, it has its own economic system, which is based on its philosophical views and is compatible with the Islamic organization of other aspects of human behavior: social and political systems. Is a term used to refer to Islamic commercial jurisprudence ( ar, فقه المعاملات, '' fiqh al-mu'āmalāt''), and also to an ideology of economics based on the teachings of Islam that is mostly similar to the labour theory of value, which is "labour-based exchange and exchange-based labour".. Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a '' Shari'a'' compliant manner, i.e., a manner conforming to Islamic scripture (Quran and sunnah). Islamic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Banking Terms
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as fractional reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords. Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date. In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower. Etymology The term "credit" was first used in English in the 1520s. The term came "from Middle French crédit (15c.) "belief, trust," from Italian credito, from Latin creditum "a loan, thing entrusted to another," from past ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Maisir
In Islam, gambling ( ar, ميسر, translit=maisîr, maysir, maisira or ''qimâr'') is absolutely forbidden ( ar, harām, script=Latn). ''Maisir'' is totally prohibited by Islamic law ('' shari'a'') on the grounds that "the agreement between participants is based on immoral inducement provided by entirely wishful hopes in the participants' minds that they will gain by mere chance, with no consideration for the possibility of loss". Definitions Both ''qimar'' and ''maisir'' refer to games of chance, but ''qimar'' is a kind (or subset) of ''maisir''. Author Muhammad Ayub defines ''maisir'' as "wishing something valuable with ease and without paying an equivalent compensation for it or without working for it, or without undertaking any liability against it by way of a game of chance", Another source, Faleel Jamaldeen, defines it as "the acquisition of wealth by chance (not by effort)". Ayub defines ''qimar'' as "also mean ngreceipt of money, benefit or usufruct at the cost of oth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Usury
Usury () is the practice of making unethical or immoral monetary loans that unfairly enrich the lender. The term may be used in a moral sense—condemning taking advantage of others' misfortunes—or in a legal sense, where an interest rate is charged in excess of the maximum rate that is allowed by law. A loan may be considered usurious because of excessive or abusive interest rates or other factors defined by the laws of a state. Someone who practices usury can be called a ''usurer'', but in modern colloquial English may be called a '' loan shark''. In many historical societies including ancient Christian, Jewish, and Islamic societies, usury meant the charging of interest of any kind, and was considered wrong, or was made illegal. During the Sutra period in India (7th to 2nd centuries BC) there were laws prohibiting the highest castes from practicing usury. Similar condemnations are found in religious texts from Buddhism, Judaism ('' ribbit'' in Hebrew), Christianity, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Maslahah
Maslaha or maslahah ( ar, مصلحة, lit=public interest) is a concept in shari'ah ( Islamic divine law) regarded as a basis of law.I. Doi, Abdul Rahman. (1995). "Mașlahah". In John L. Esposito. ''The Oxford Encyclopedia of the Modern Islamic World''. Oxford: Oxford University Press. It forms a part of extended methodological principles of Islamic jurisprudence (''uṣūl al-fiqh'') and denotes prohibition or permission of something, according to necessity and particular circumstances, on the basis of whether it serves the public interest of the Muslim community (''ummah''). In principle, ''maslaha'' is invoked particularly for issues that are not regulated by the Qur'an, the '' sunnah'' (the teachings and practices of the Islamic prophet Muhammad), or '' qiyas'' (analogy). The concept is acknowledged and employed to varying degrees depending on the jurists and schools of Islamic jurisprudence ('' maddhab''). The application of the concept has become more important in modern tim ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Halal
''Halal'' (; ar, حلال, ) is an Arabic word that translates to "permissible" in English. In the Quran, the word ''halal'' is contrasted with '' haram'' (forbidden). This binary opposition was elaborated into a more complex classification known as " the five decisions": mandatory, recommended, neutral, reprehensible and forbidden. Islamic jurists disagree on whether the term ''halal'' covers the first two or the first four of these categories. In recent times, Islamic movements seeking to mobilize the masses and authors writing for a popular audience have emphasized the simpler distinction of ''halal'' and ''haram''. The term ''halal'' is particularly associated with Islamic dietary laws and especially meat processed and prepared in accordance with those requirements. In the Quran The words ''halal'' and ''haram'' are the usual terms used in the Quran to designate the categories of lawful or allowed and unlawful or forbidden. In the Quran, the root h-l-l denotes lawfu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ahadith
Ḥadīth ( or ; ar, حديث, , , , , , , literally "talk" or "discourse") or Athar ( ar, أثر, , literally "remnant"/"effect") refers to what the majority of Muslims believe to be a record of the words, actions, and the silent approval of the Islamic prophet Muhammad as transmitted through chains of narrators. In other words, the ḥadīth are transmitted reports attributed to what Muhammad said and did. Hadith have been called by some as "the backbone" of Islamic civilization, J.A.C. Brown, ''Misquoting Muhammad'', 2014: p.6 and for many the authority of hadith as a source for religious law and moral guidance ranks second only to that of the Quran (which Muslims hold to be the word of God revealed to Muhammad). Most Muslims believe that scriptural authority for hadith comes from the Quran, which enjoins Muslims to emulate Muhammad and obey his judgements (in verses such as , ). While the number of verses pertaining to law in the Quran is relatively few, hadith are co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
