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Glossary of Islamic Banking Terminology- A -
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A yaan
Plural of ayn. Goods or specific thing

A’mal
plural of amal (work) that is required in a partnership or based on which a partnership is formed

Abd
slave; servant; abd madhun is a slave who has been authorized by his master to handle business on his behalf

Abddan
sharikat al-abddan

Adhaab / azab
Punishment, especially the punishment for failing to obey Allah Taala. see the Holy Quran

Adl / adil
Justice and equity. A fundamental value governing all social behaviour and forming the basis of all socialdealings and legal framework

Afdal
The best

AH
After Hijra. Hijra means emigration. The Islamic calendar startsfrom the day the Holy Prophet Muhammad (S.A.W.), emigrated from Mekkah to Madinah, in 622 A.D.

Ahadeeth also spelled Ahadith
Sayings and traditions of the Holy Prophet Muhammad (S.A.W.). Singular: Hadith.

Ahd
covenant; here it is used in the context of dhimmah (personal­ity), which is considered by the jurists a covenant with the Creator.

Ahkam
Plural of hukm (rule); the ahkam of a contract (legal ef­fects) as distinguished from its huquq (rights of performance of the contract) the Hanna’s make a distinction between the two.

Ahl ar-ray
Means people of opinion. It is refers to people that are consulted on Islamic matters. These people are highly learned in Islam.

Ahliyah
Legal capacity

Ahliyat al-add
Legal capacity for execution

Ahliyat al-wujub
Legal capacity for the acquisition of rights and obligations.

Ahlul Kitab Wa Sunnah
Literally means "the People of the Book (the Holy Quran) and the sayings and traditions, i.e. the Sunnah of Prophet Muhammad (S.A.W.)".

Ajal
period; duration for which delivery is delayed.

Ajanib
plural of ajnabi (stranger); those who are not co-owners in a property.

Ajnabi
stranger; see ajanib.

Ajr al-mithl / Ajrul Mithl
reasonable wages; wages to which a person would be entitled under normal circumstances or customary in the community.

Al Fard al Kifayah
Socially obligatory duties. Literally, a collective duty of Muslims, the discharge of which by some of them absolves the rest of its performance, such as funeral prayers. Technically it covers such functions which the community fails to or cannot perform and hence are taken over by the state, such as the provision of utilities, building of roads, bridges and canals etc.

Al Hisba
System of accountability in an Islamic state in order to check unlawful practices.

Al-Aamilu-Alaz-Zakah
Zakah collector.

Alaihis Salaam / A.S.
May Allahs peace be upon him. A phrase which is usually read after the name of a prophet other than Prophet Muhammad (S.A.W.) is mentioned.

Alim
An Islamic religious scholar. Plural: Ulamaa.

Al-khardj bi al-damdn
a principle based upon a tradition; it is perhaps, the most influential principle in Islamic law, applies to contracts, damages, and even crimes.

Allah
The Name of the Creator of the Universe and all that it contains according to Islam. Derives from the word "Ilah" which means "the One deserving all worship", the One to Whom all hearts submit in love, fear, reverence, desire, trust and sincerity, and to Whom all limbs submit in all forms of worship such as prayers, supplications, sacrifices, invocations, etc.

Al-Mofaviza
General Partnership (one of the types of partnership under Musharakah)

Al-sharikah dhat al-mas uliyah al-mahdudah
the name for a private limited company in Egyptian law

Al-wadia / Al-wadiah
This refers to deposits in trust, in which a person may hold property in trust for another, sometimes by implication of a contract.

Al-wakala al mutlaqa
Resale of goods with a discount on the original stated cost. Absolute power of attorney.

Al-Qard al-Hassan
Loans fixed for a definite period of time without interest or profit sharing.

Amal
work; conduct.

Amana / Amanah
Lit: reliability, trustworthiness, loyalty, honesty; Technically, an important value of Islamic society in mutual dealings; anything, which is in posses­sion of a person who is not the owner of it for safekeeping. In case of unintended loss to the thing, he is not obliged to pay compensation.

Ameen / Amin
Custodian or guardian; trustee.

Amir
Amir is used in Islam to mean leader or commander.

Amwal
Wealth; in business context wealth that is contributed as capital in a partnership; Plural: mal.

Aqd ghayr Azim
a contract that is terminable at the will of the parties, like partnership.

Aqd Sahih
A legal contract.

Aqd
agreement, contract.

Aqeeda
Literally means belief. In Islamic terminology, it means articles of faith

Aqilah
People who have ethnical relationship or rela­tionship of cooperation and help with an unin­tentional killer. They are legally obliged to bear blood money along with the killer.

Aql
reason; fourth interest secured by the shariah and recognized as a purpose of the law; the existence of aql is an essential condition for ahliyat al-add.

Ard / Ardh
land; property that includes goods, slaves and even real estate; according to most jurists land is not eligible for enti­tlement to profit as compared to other things that are: wealth, labor, credit-worthiness qiyas (analogy); a principle of law; principal amount in a debt; see A’s al-mal.

Athmaan mutlaqah
absolute currencies; the term is usually applied to dinars and dirhams.

Awkaf/ Awqaf
A religious foundation set up for the benefit of the poor;  property voluntarily transferred to a charity or trust so that it is use for public benefits.

Ayah
A verse of the Holy Quran. Literally means "a sign". Plural: Ayaat.

Ayn
The corpus or substance of a thing. A thing present as distin­guished from one that is absents at the time of the contract. In Hanafi terminology, a thing is to be determined through weight or measure during a transaction of sale.

 

 

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