xii GLOSSARY OF ARABIC TERMS
maslahah: Literally, “benefi t.” Technically, it refers to any action taken to protect
any one of the fi ve basic objectives of the Shari’ah
mithaq: A covenant
muamalat: Interpersonal transactions
mubaya’a: Contract between the ruler and the community that he will be faithful
in discharging his duties in compliance with the rules prescribed by Allah (swt)
mudarabah: Contract between two parties — a capital owner or fi nancier (rabb al -
mal) and an investment manager (mudarib). Profi t is distributed between the
two parties in accordance with the ratio upon which they agree at the time of
the contract. Financial loss is borne only by the fi nancier. The investment man-
ager’s loss lies in not getting any reward for his labor services
mudarib: Investment manager
muhtasib: A market supervisor
murabahah: Sale at a specifi ed profi t margin. This term, however, is now used to
refer to a sale agreement whereby the seller purchases the goods desired by the
buyer and sells them at an agreed marked - up price, the payment being settled
within an agreed time frame, either in installments or as a lump sum. The seller
bears the risk for the goods until they have been delivered to the buyer. Also
referred to as bay’ mu’ajjal
musharakah: Partnership. Similar to a mudarabah contract, the difference being
that here both partners participate in the management and the provision of capi-
tal and share in the profi t and loss. Profi ts are distributed between the partners
in accordance with the ratios initially set, whereas loss is distributed in propor-
tion to each one’s share in the capital. Also, this contract is more suitable for
longer-term partnership contracts and long - gestating projects
musharakah ’aqd: The contract of musharakah
musharakah mulk: Specifi cation of property rights of partnership
musharakah mutanaqisah: “Diminishing partnership”
mysir: Gambling or any game of chance
N
nafaqa: Expenditure
nafs: The psyche (sometimes translated as “soul”)
nisab: A level of wealth beyond which levies are due
niyyah: Intention
Q
qard: A loan
qard - ul - hassan: Loan extended without interest or any other compensation from
the borrower. The lender expects a reward only from Allah (swt)
qimar: Gambling
qist: Social (inter - relational) justice
qiyas: Analogy
Qur’an (also written as al - Qur’an): The Holy Book of Muslims, consisting of the
revelations made by Allah (swt) to the Prophet Muhammad (pbuh). Prescribes
the rules of social and personal behavior, compliance with which guarantees
social solidarity, economic growth and development