- salam / bai al-salam / bai salam / bai'salam
Salam means a contract in which advance payment is made for goods to be delivered later on.
- salat / salah
The five daily prayers, practiced by Muslims in supplication to Allah s.w.t.
- Shari'ah / Sharia / Shariah / Syaria / Syari'ah / Syar'a
Refers to the laws contained in or derived from the Quran and the Sunnah (practice and traditions of the Prophet Muhammad (PBUH).
- Shari'ah board
An authority appointed by an Islamic financial institution, which supervises and ensures the Shari’ah compliance of new product development as well as existing operations.
A contract between two or more persons who launch a business or financial enterprise to make profit.
A contract between two or more persons who launch
a business or financial enterprise to make profit. Generally it is termed as ‘shirkah’.
Partnership by ownership, which could be automatic as in the case of inheritance by eg two brothers, or optional such as two persons purchasing a property jointly (not for a commercial purpose).
- suftaja / suftajah / suftajal
A type of banking instrument used for the delegation of credit during the Muslim period, especially the Abbasides period. It was used to collect taxes, disburse government dues and transfer funds by merchants. It was the most important banking instrument used by traveller merchants. In some cases suftajas were payable at a future fixed date and in other cases they were payable on sight. Suftaja is distinct from the modern bill of exchange in some respects. Firstly, a sum of money transferred by suftaja had to keep its identity and payment had to be made in the same currency. Exchange of currencies could not take place in this case. Secondly, suftaja usually involved three persons. 'A' pays a certain sum of money to 'B' for agreeing to give an order to 'C' to pay back to 'A'. Third, suftajas could be endorsed. The Arabs had been using endorsements (hawala) since the days of the Prophet Muhammad.
Similar characteristics to that of a conventional bond with the key difference being that they are asset backed; a sukuk represents proportionate beneficial ownership in the underlying asset. The asset will be leased to the client to yield the return on the sukuk.
It refers to the sayings and actions attributed to Prophet Muhammad (PBUH).