Glossary of Arabic terms xiii
R
rabb al - mal: Capital owner or fi nancier
rahn: a pledge (also translated as “collateral”)
riba: Literally, “increase,” “addition” or “growth.” Technically, it refers to the
“premium” that must be paid by the borrower to the lender along with the
principal amount as a condition for the loan or an extension in its maturity.
Interest, as commonly understood today, is regarded by a predominant majority
of fuqaha’ to be equivalent to riba
ribh: Profi t
S
sadaqat: Payments to redeem others’ rights(also translated as “charity”)
safi h: A person of weak understanding
sarf: An exchange contract
sarrafs: Exchange dealers
Shari’ah: The corpus of Islamic law based on Divine guidance, as given by the
Qur’an and the sunnah, and embodies all aspects of the Islamic faith, including
beliefs and practices
shirakah: Partnership.
suftaja: Bills of exchange
sukuk: Negotiable fi nancial instruments
sunnah: The second - most important source of the Islamic faith after the Qur’an
and refers to the Prophet’s (pbuh) operationalization and explication of the rules
prescribed by Allah (swt) in the Qur’an in words and action
surah: A chapter of the Qur’an
T
tabdhir: Squandering
takaful: An alternative to the contemporary insurance contract. A group of per-
sons agree to share a certain risk (for example, damage by fi re) by collecting a
specifi ed sum from each. Any loss is met from the collected funds
taqwa: Awe/fear that comes with consciousness of the presence of Allah (swt)
tawarruq: Reverse murabahah. Buying an item on credit on a deferred - payment
basis and then immediately reselling it for cash at discounted/prize to a third
party
tawhid: The Unity and Oneness of the Creator
tijÉrah/tirajah: Contracts of trade
U
urf: Customs
W
wa’d: A time - bound promise to deliver on terms contracted
wadia: Trust or safe keeping