F

 Islamic Economic Glossary

Return, booty, shadow. Tech: Signifies what is. obtained from the enemies after laying down arms (without fighting) and what is received from any alien people under a treaty, the proceeds of which, according to the majority of jurists, go to the public sector of the Islamic state. According to some, however, a fifth of the fai, like that of ghanimah, is to be divided among the five categories specified for the latter: the Prophet, his near relatives, destitute, orphans and poor way-farers. After the demise of the Prophet the two shares of the Prophet and his relatives from the fifth of the fai and ghanimah as held by the majority were withheld by Abu Bakr and this practice was followed by the subsequent three caliphs also. These two shares were either absorbed in the shares of the other three beneficiaries or as some reports say, went to the general public sector. Subsequently, the fai came to be identified with all revenues except zakat, a term which can mean civil revenues these days.

 

An alternate term forfai.

 

Special messengers running with letters of credit, employed by bankers during the Abbaside period. This was a regular banking service provided for a small commission (usually one dirham per dinar).

 

The Faisal Islamic Bank of Egypt was founded in 1977 by Prince Muhammad al-Faisal al-Saud. It claims to run its operations on the basis of the shariah. A board of ulema supervises the legality of the operations. Its operations consist of musharakah, mudarabah, murabahah and qard hasan. Authorized capital was US$500 million and paid-up capital was $100 million in 1983. Most of the bank's activities consisted of financing short-term projects. However, it had plans to start long-term financing as well. The bank had established thirty-two companies in various development fields. The bank collected and disbursed zakat as well.

 

Incorporated in August 1977. Has eighteen branches, besides a head office and three subsidiaries for insurance, trade and real estate. Authorized capital, LS100 million. Paid-up capital, LS58.4 million.

 

To separate, disjoin and redeem. Tech: During fourteenth century Nasrid Spain used in commercial legal transactions to mean redemption of pledges and debts. In Andalus this term was applied to an intermediary who was paid by the relatives of a person in the enemy territory to buy the liberty of the person by paying the required amount to the enemy. Gradually, alfakkak grew in size and functions and started earning commission from both parties. Other functions performed by him were bargaining of ransoms, trading in silk, lending and dealing in debased currencies, etc. He seems to be the professional money-lender of the then Muslim Spain.

 

To thrive, to become happy, to have luck or success. Tech: It implies success in the Akhira (Hereafter). The falah presumes belief in one God, apostle hood of Muhammad, Akhira and conformity to the shariah in behavior. The Islamic state has the responsibility of providing for such conditions which may facilitate achievement of the falah at individual and collective levels. The spiritual conditions of the falah are: humility in prayers, consciousness of God (taqwa), remembrance of God, thanksgiving to God, repentance and inner-purification. Economic conditions for the falah are: infaq, prohibition of riba, fulfillment of covenants, avoidance_ of exploitation, earning livelihood through effort and avoidance of miserliness. Cultural conditions of the falah are: system of prayers, pursuit of knowledge, sexual chastity, avoidance of intoxicants and gambling, purification of environments, enjoining of the proper and prohibition of the improper and avoidance of frivolities. Political conditions of the falah are: jihad and shura (consultation). Islamic economics studies the economic conditions of the falah. The falah is a both worldly concept. It implies the reconstruction of human character in the light of Islamic values, while providing one a minimum standard of living and clean environments. It also suggests self-respect, self-reliance and a purified soul. Although Islamic economics concentrates on the economic conditions of the falah, yet it conceives it as a multi-dimensional concept and remains conscious of its other aspects.

 

Designation of the copper coin current in the early centuries of the Islamic era. It was also a small weight equivalent to 0.00082 grams.

 

Lit: A poor man. Tech: Used in the law of zakat, for a needy and poor man who has nothing to live on. It includes an unemployed person also. Some jurists think that alfaqir is a person who does not have enough to make him liable to pay zakat.

 

Lit: Poverty, need, want. Tech: A condition of unfulfilled basic needs. It also refers to a condition of lack of contentment, leaving one in a state of greed. But it has a positive connotation as well: indifference towards material endowments despite ability to possess. A natural corollary of alfaqr is rough and simple living by one's option (and thus to transfer the surplus to the needy and the poor). In this sense, alfaqr is an economic value of Islamic society.

 

A measure equivalent to six qist or 3 sa. According to most of the jurists it is equal to 6.516kg. In terms of litres it is 8.244 litres according to most of the jurists but 10.086 according to Hanafites.

 

A collective duty upon Muslims, the discharge of which by some of them absolves the rest of its performance, such as salat al-janazah or jihad. Tech: It covers such functions which the community fails to (or cannot) perform and hence are taken over by the Islamic state, such as provision of utilities, building of roads, bridges and canals.

 

Corruption on the earth. It is generally interpreted as highway dacoit, arson, manslaughter, burning of crops and destruction in the society. Tech: It also covers such economic behavior of individuals or policies of the state that cause socio(:economic imbalance, poverty, deprivation, retardation in economic growth and unemployment.

 

See Faisal Islamic Bank of Egypt.

 

Islamic jurisprudence. The science of the shariah. It is an important source of Islamic economics.

 

It is one of the eight heads of account on which the zakat fund can be expended. It stands for jihad in the name of Allah. In a broader sense it includes all those efforts which are carried out to implement Islam, whether it is fighting in the battlefield or by other means.

 

Specialized large-scale commercial institutions and markets of the mediaeval Islamic period which developed into virtual stock exchanges. They dominated the townscape of great cities in the entire Islamic world.