Each of Al Rayan Bank's accounts is fully approved by the Sharia Supervisory Committee.
A - Z of Islamic finance
Learn more about Islamic finance terminology with our A to Z of Islamic finance.
A to G
- A payment or compensation. For example, a commission, fee or wage charged for a service
- Al Sar Al Adl
- The just and fair price
- Al Wakala Al Mutlaqa
- Absolute power of attorney
- Reliability, trustworthiness and honesty
- A worker, or an agent, who performs a task deserving compensation
- Wealth. Worldly possessions, including property and money.
- A contract or agreement
- Aqd Al Bay
- A contract of sale
- Aqd Al Muawadah
- A contract of exchange where compensation is given against the goods or services received
- AqdGhair Lazim
- A contract in which all parties have the right to revoke, with the consent of the others
- Aqd Lazim
- A contract in which none of the parties have the right to revoke, without the consent of the others
- A non-refundable down payment or deposit, paid by a buyer for the right to purchase goods at a certain time and certain price in future. If the right is exercised, it becomes part of the purchase price. If the buyer does not complete the purchase or backs out for any reason, the seller has the option to forfeit the deposit.
- Tangible assets, such as monetary wealth
- A 'sale' or 'contract of sale'
- Bai Bithaman Ajil
- The sale of goods on a deferred payment basis
- Bai Mu’ajjal
- A credit sale or deferred payment contract
- Bai Wafa
- A buy-back, sale and repurchase
- Bay'al Ayan
- The sale of tangible assets, as opposed to sale of services or rights
- Invalid sale or contract
- A guarantee
- Diminishing Musharaka
- Diminishing partnership. One party reduces its equity in an asset with any additional capital payment the other party makes. Used in Al Rayan Bank Home Finance
- Fiqh A Mua'malat
- Jurisprudence of financial transactions, or the rules of transacting in a Sharia compliant manner
- The element of absolute or excessive uncertainty in any business or contract
- A debtor who does not possess the fund with which to repay their debt
How is Islamic finance different?
Islamic finance works differently to conventional banking and is regarded as ethical by those who use it. But how is it different and why is it considered ethical?