Al Mudaraba Al Muqayadah	A type of mudaraba in which the rab al mal (investor) sets rules on how the mudarib (entrepreneur) shall invest the money. An example would be specifiying specific asset classes or business sectors that the mudarib can or cannot invest in.
Al Mudaraba Al Mutlaqah	A type of mudaraba in which the rab al mal (investor) gives the mudarib (entrepreneur) full freedom to invest in whatever businesses or asset classes he or she deems appropriate in order to maximise profits. Any procedures or actions outside the context of the routine business shall first be approved by the rab al mal.
Alim	Scholar
Arbun	A down payment given to the seller once a sale agreement is signed. If the agreement is executed on time the arbun is deducted from the total paid to the seller. If the buyer cancels the sale the arbun is not refundable and stays with the seller.
Awqaf	Plural of waqf
Bai'	Sale
Bai' al I'nah	A transaction where a seller sells an asset to a buyer on a cash basis, and then buys it back for a higher price. Islamic scholars disagree on whether bai' al I'nah are Shariah compliant.
Bai' al salam	The same meaning as salam
Bai' al-Aajil	A sale where the payment is deferred - also known as bai' bi thaman ajil
Bai' Bi thaman Ajil / BBA	See bai' al-aajil
Bai' Mu'ajjal / Bai' bi thaman ajil	A sale where the payment is deferred
Batil	Used to describe a contract that is not valid under Shariah law because of inherent features of the contract. Batil is sometimes used interchangably with fasid, although some scholars use fasid to refer to a contract that could be valid if not for certain characteristics.
Commodity Murabah	Also known as tawarruq
Daman	A form of guarantee or security - typically in a contract - which could be the provision of collateral or an actual guarantee.
Fasid	Used to describe a contract that is defective because certain aspects mean it fails to be Shariah compliant
Fatwa	A legal ruling from a recognised religious authority on issues concerning Shariah law. In Islamic finance it is often a ruling that a particular transaction or structure is shariah compliant
Fiqh	Islamic jurisprudence
Fiqh muamalat	Islamic commercial jurisprudence
Gharar	Uncertainty. In Islamic finance this typically refers to speculative transactions that contain an element or risk or a lack of sufficient information that make them haram (prohibited).
Gharar fahish	Excessive uncertainty, which prevents the transaction being Shariah compliant
Gharar fil ajal	Occurs when one party in a transaction is unaware of, or is given faulty information about, when the assets in question will be delivered.
Gharar fil miqdar	Occurs when one party in a transaction is unaware of, or given incorrect information about, the quantity of a given asset he or she is buying.
Gharar fil sifah	Occurs when one of the parties in a transaction is uncertain about the characteristics of the assets
Gharar fil taslim	Occurs when one of the parties in a transaction does not know whether the assets have been delivered, or has received faulty information about this.
Gharar motawasit	A moderate degree of uncertainty that could still allow a transaction to be Shariah compliant
Gharar yaseer	A small amount of uncertainty that does not prevent the transaction being Shariah compliant
Halal	Anything that is Shariah compliant or abides by Shariah rules
Hamish Jiddyah	A security deposit the customer pays the bank or financier at the promise (wa'd) stage of a transaction. If the transaction does not take place the financier/bank has full recourse to the deposit.
Haram	Something prohibited under Shariah law
Ijara	Leasing - the sale of usfruct of a certain asset for a specific period of time with the client paying rental fees to the owner of the asset. Usually a financier or bank enters as a mediator between the owner of the asset and the client. The bank purchases the asset from the former and leases it to the latter in return for pre-agreed rental payments from the client to the bank. Unlike conventional leasing, an ijara lease starts from the date upon which the asset is delivery, rather than date of agreement. If the company sells the asset to the bank and then leases it back, this must be done through two separate transactions rather than the one transaction that would be required in a conventional sale and lease back agreement.
Ijara mawsuf fi dhimma	A forward lease agreement to lease a property or asset, which is still to be constructed and delivered, on a future date. The rentals (lease payments) can be collected before the delivery of the asset.
Ijara muntahia bi tamaluk	An ijara lease that ends with ownership of the asset moving from the lessee from the lessor. This could be through sale, gift, or equity claim and occurs in a separate agreement where both parties provide a wa'd (promise) that the transaction will take place after the end of ijara agreement at defined exercise price and certain agreed upon terms.
Ijara thumma bai'	An ijara lease that ends with the lessee buying the asset. Also known as ijara muntahia bi tamaluk.
Ijara wa iqtina	An ijara lease that ends with the lessee buying the asset. Also known as ijara muntahia bi tamaluk.
Ijma'	A consensus, particularly one among Islamic scholars.
Ijtihad	Diligence in reaching a conclusion on a specific issue through the careful and comprehensive consultation of Islamic theology and legal theory.
I'nah	Also known as Bai' a I'nah
Istihsan	To deem something preferable, often in comparison with a literal prescription of Shariah law. A way of using one's own judgement to deviate from a literal interpration of Shariah law.
Istisna'	The advance purchase of manufactured goods - a sale transaction in which one party provides funding for a good or an asset yet to be manufactured or constructed. It differs from a salam transaction through the nature of the assets, their price delivery date and the terms of contract cancellation.
Istisna' sukuk	Certificates of equal value used to finance an istisna'. The sukuk holders will be partial owners of the goods or asset being constructed in the istisna'.
Madhab	A school of thought or interpretation within fiqh. Also written as mazahib.
Maqasid al Shariah	General objectives or goals of Shariah.
Maysir/Maisir	Gambling or any game of chance. Maysir is considered a broader term than qimar. It is not permitted under Shariah because it involves making money from pure luck without effort, and because it can lead to one party making a monetary gain from another's loss. Maysir was a pre-Islamic game of chance.
Mudaraba / Qirad	An agreement between two parties, with the rab al mal providing the capital for the project and the mudarib managing the project. Profits are distributed according to a predetermined ratio, but losses are borne by the rab al mal.
Mudaraba sukuk	Certificates of equal value representing ownership in a project funded through a mudaraba agreement.
Mudarib/Mudareb	Working partner. One of the parties involved in mudaraba agreement. The mudarib, sometimes referred to as the entrepreneur, handles the management receives a share of the profit
Murabaha/Muqaradah	A financing contract with agreed cost and profit margins, and with settlement either on a deferred lump sum or through instalments.
Murabaha sukuk	Certificates of equal value to finance purchase of goods through murabaha transaction, which makes sukuk holders collective owners of the murabaha commodity.
Murabahah mujjal	Deferred murabaha. Also known as bai' bi thaman ajil
Musharaka Mutanaqisa	A diminishing musharaka. A form of musharaka where the partnership agreement ends with one partner owning the asset or business, through purchasing the other party's share in a series of installments. It is one of the most common form of musharaka. Sometimes written as musharaka mutanakisa
Musharaka	A partnership agreement between Islamic banks and its clients, or between two or more parties. Each participant, or sharik, contributes capital in equal or varying amounts to establish or share in a project. Each becomes an owner of the project's capital, and shares profits and losses in proportion to their contribution.
Musharaka muntahiah bi tamaluk	A musharaka ending with sale of ownership in which one of the partners ends up owning the asset, business or project.
Musharaka sukuk	Certificates of equal value representing ownership in a certain project that is being set up or maintained through a partnership contract, making sukuk holders joint owners of the project.
Musharik	One of the parties in a musharaka partnership agreement.
Qard	A loan
Qard Hasan	A benevolent loan. An interest free loan given for a specified period of time. At the end of that period, the borrower is required to only pay back the principal value of the loan, with no interest payment or compensation for the time value of the money.
Qimar	Gambling, with specific reference to betting and wagering. It is not considered Shariah compliant because it involves acquiring money with no effort or through pure luck.
Qirad	Also known as mudaraba
Qiyas	Measuring - extension of a certain Shariah ruling from an original case to a new one because of similar conditions and aspects in both cases.
Qur'an	The Muslim holy book, which Muslims believe to be the word of God as revealed by the prophet Mohammad
Rab Al Mal/Rabbu Al Mal	The party in a mudaraba agreement that supplies the capital.
Retakaful	Reinsurance for a takaful company
Riba	Usury. Usually used to refer to interest in finance.