Islamic Finance Guides & FAQs


Islamic Finance Definitions

There are such a dizzying range of Arabic, English and Malaysian terms bandied around when talking about Islamic finance that someone coming at this topic afresh is quickly left baffled.

Worry not intrepid researchers, we have compiled this list of Islamic finance definitions with a specific focus on practical examples and jargon-free language so that you don’t just get an academic definition but something that you can actually work with.

If you would like us to add to these definitions, let us know via our Contact Us page!

Introductory Islamic Finance Definitions

  1. What is riba? (and here’s a shorter, snappier, guide )
  2. Definition of zakat (and here’s a longer explanation )
  3. What is gharar?
  4. What is a halal investment?
  5. What is a halal property investment?
  6. What is an Islamic investment policy?
  7. What is special about an Islamic fund?
  8. What is an Islamic roboadvisor?
  9. What does tahawut mean?
  10. What is an Islamic derivative?
  11. Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Definition
  12. What is Islamic banking?
  13. What is musharakah?
  14. What is mudarabaha?
  15. What is hawalah?
  16. What is hiba?
  17. What is a qard hasan?
  18. What is a waqf?
  19. What is bai salam?
  20. What is bai istisna?
  21. What is tawarruq?
  22. What is commodity murabaha?
  23. What is ijarah?
  24. What is a dayn?
  25. What is Islamic finance?
  26. What is sharia law?
  27. What is an Islamic investment policy?
  28. What is bai al inah?
  29. What is an Aqd?

Advanced Islamic Finance Definitions

  1. What is a wad contract?
  2. What is a diminishing musharah agreement?
  3. Examples of Haram transactions
  4. Examples of Halal transactions
  5. What is maysir?
  6. What is Ijarah mawsuufah fi dhimmah?
  7. What is Ijarah muntahia bi tamleek
  8. What is Ijarah wa al-iqtina’ ?
  9. What is parallel Salam?
  10. What is parallel istisna?
  11. What is ju’alah
  12. What is kafalah?
  13. What is a hilah/hiyal?
  14. What is riba al fadl?
  15. What is riba al nasiah?
  16. What is cost-plus financing?
  17. What is a sukuk?
  18. What is sadd al-dharai?
  19. What is tabarru?
  20. What is takaful?
  21. What is tanazul?
  22. What is isqat haq?
  23. What is urf?
  24. What is usul al fiqh?
  25. What is bai urbun?
  26. What is a wakalah contract?
  27. What is a wadiah contract?
  28. What does Al-Ghurm bil Ghunm mean?
  29. What does Al-kharaj bil daman mean?
  30. What is the IFSB?
  31. What does qimar mean?
  32. What does musawammah mean?