Shari'ah finance—glossary of terms
Shari'ah finance—glossary of terms

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Shari'ah finance—glossary of terms
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.


Al-AjrA commission, fee or wages levied for services.
Al-Ghurm bil GhunmThe principle that a party is entitled to gain only if it also bares the responsibility for any losses ie the parties have engaged in risk-sharing. This principle of risk sharing also forms the basis of shirkah partnership arrangements.
Al-Sar-al-AdlA just price to pay for something.
Al-WadiaThe resale of goods at a discount to the original cost.
Al-Wakala al MutlaqaAn absolute power of attorney.
Aqd Ghair LazimA contract in which any of the parties has a unilateral right to revoke the agreement with the consent of the other parties.


Bai al DaynA form of debt financing that is a short-term facility, with a maturity of not more than a year. Only documents evidencing debts arising from bona fide commercial transactions can be traded.
Bai al Salam The advance payment for goods which are to be

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