410 glossary
lower than the deferred price. There may be a doubt surrounding the Islamic
legitimacy of this transaction as it might involve a suspicion that the transaction
is purely a finance transaction with no genuine interest in exchanging goods. It
may be regarded as a “trick”, hˆìlah, to avoid the transaction being usurious.Bai"al-Istijrar: periodical delivery of goods sold on credit. A contract between
the client and the supplier, whereby the supplier agrees to 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.
Bai"al-Muzayadah: auction sale. An action by a person to sell assets in the open
market, which is accompanied by the process of bidding among potential buy-
ers. The asset for sale will be awarded to the person who has offered the high-
est price. In other words, it is known as the sale and purchase transaction based
on tender.
Bai"al-Salam: immediate payment for future delivery. A contract whereby the
payment is made in cash at the point of contract but the delivery of asset pur-
chased will be deferred to a pre-determined date. This is also called Bai"-al-
Istisna"(sale of goods to be manufactured) as it suits the transaction whereby the
manufacturing of goods is financed in advance.
Bai"al-Wafa": fulfillment of promised sale. A contract with the condition that when
the seller pays back the price of the goods sold, the buyer returns the goods to
the seller.
Dhaman: surety and security. A contract of guarantee whereby a guarantor shall
underwrite any claim and obligation that should be fulfilled by an owner of the
asset. This concept is also applicable to a guarantee provided on a debt trans-
action in the event a debtor fails to fulfill his debt obligation.
Dìwàn:bureau, or register. The establishment of state bureau could be attributed
to Caliph Umar when he set up the dìwàn al-Jund, Register of Soldiers, to orgas-
nise the payment of stipends to the soldiers after conquering Syria and Iraq. The
Umayyads and the Abbasids expanded the bureau to include:
Ddìwàn-al-barìd: bureau of postal service.
Ddìwàn-al-rasa"il:bureau of correspondence.
Dìwàn-al-khàtim: bureau of seal of stamp.
Dìwàn-al-asl:provincial administrative bureau.
Dìwàn-al-zimam (singularzimmah): provincial financial control bureau.
Dìwàn al-Mustaghallat: bureau to run and supervise the activities of the gov-
ernment business sector
Fai"(Anfàl): spoils of war gifted from God. Fai"is spoils of war that were gained
without the toil of actual combat. This is differentiated from ghanìmah, spoils of
war, as the latter were gained from the enemy through actual combat (Qur"àn
59:6–8). Anfàl also took the same rule of allocation; all to God and His messen-
ger, which makes it identical to Fai"in distribution. The difference between Anfàl
and Fai"is that while Anfàlresulted from actual combat Fai"did not. Anfàlwas
however an infrequent case and that was when Muslims disputed over the spoils
of the first battle of Badr in 624 A.C. and as a result, all spoils were put under
the disposal of the Prophet who distributed them to all Muslims either took part
in the battle or not.
Fatwa:A formal religious opinion or decision of a religious scholar on a matter
of Islamic issue socially, politically or economically.