I

 Islamic Economic Glossary

See Islamic Bank International of Denmark.

 

Relating to the nisab for zakat, a two-year-old he-camel.

 

Relating to the nisab for zakat, one-year-old he-camel.

 

Traveler. Tech: One of the eight heads of account on which zakat may be expended. The zakat may be spent to help a traveler if he has fallen short of funds during the journey even though he may be a rich person.

 

During the Abbaside period, it referred to the average rate of tax for each locality or area. The average was calculated on the basis of the lowest and the highest revenues of the previous few years.

 

Quranic term for economic struggle. It implies that struggle to earn livelihood is a part of the overall struggle to achieve alfalah in the Hereafter. Whatever one earns is a nimah (gift) or fadl from Allah and one will have to account for it on the day of judgment.

 

Islamic Chamber of Commerce, Industry and Commodity Exchange. Established in 1978 at Karachi, as an organ of the OIC, it promotes industrial co-operation by Islamic joint ventures.

 

Islamic Centre for Development of Trade. Established in 1981 at Casablanca as an organ of the OIC it aims at regular commercial contacts and promotes harmonization of commercial and investment policies of Islamic countries.

 

The Islamic Commission for Economic, Cultural and Social Affairs. Formed in 1976, it is an organ of the OIC which reports to the Conference of Foreign Ministers. It superseded the Permanent Commission of Economic Experts and the Commission of Economic Experts and Representatives.

 

Islamic Centre for Vocational and Technical Training and Research. It was established at Dhaka in 1978 as an organ of the OIC. It helps to meet the demand for technically qualified manpower in the Islamic countries.

 

Wasting of wealth, squandering. Tech: Dissipation of wealth in any manner not allowed by the shariah including dumping of goods in the sea to keep scarcity in the market. Other examples are setting on fire or destroying goods or assets in a selfish manner.

 

See Islamic Development Bank Jeddah.

 

See Islamic Finance House.

 

Islamic Finance House Universal Holding (formerly Islamic Banking System), Luxembourg.

 

Islamic Foundation for Science, Technology and Development. Established in 1978 at Jeddah, as an organ of the OIC, it collects and disseminates information on research facilities of the Muslim world and co-ordinates activities in the field of science and technology.

 

Relating to the law of ownership, it refers to securing or taking possession of things not already owned by another.

 

Beneficence. Tech : al-Ihsan is to accept readily and ungrudgingly while receiving, a smaller share than what is due and to give, while paying back, a larger share than what is due. Al-Ihsan is an important value of Muslim society. It is over and above the legal equitability of the al-adl and is practiced voluntarily.

 

The hoarding and corner-marketing of commodities of any kind, particularly foodstuffs, with a view to creating an artificial scarcity and rise in price.

 

Lit: Revival of dead lands. Tech: Development of ownerless lands (al-mawat) to make them productive. Also see al-ard al-mawat.

 

The process of development of a dead land which entides a person to claim ownership of the land. It includes cultivation, plantation and irrigation, etc., on this land.

 

See International Institute of Islamic Banking and Economics.

 

A class of privileged landlords who were not subjected to arbitrary taxation. Their taxes were fixed once for all. They were not increased on any pretext nor was a concession given to them if the land became waste or the crop was destroyed. The privilege was enjoyed by the landlord and his posterity.

 

Letting on lease. Tech: Sale of a definite usufruct in exchange for definite reward. But it is commonly used for wages. Also it refers to a contract of land lease at a fixed rent payable in cash. It is contrary to muzarah when rent is fixed as a certain percentage of the produce of land. It also refers to a mode of financing adopted by Islamic banks. It is an arrangement under which the Islamic bank leases equipment, a building or other facility to a client against an agreed rental. The rent is so fixed that the bank gets back its original investment plus a profit on it.

 

A mode of financing adopted by Islamic banks. It is a contract under which the Islamic bank finances equipment, building or other facility for the client against an agreed rental together with an undertaking from the client to make additional payments in an account which will eventually permit the client to purchase the equipment or the facility. The rental as well as the purchase price is fixed in such a manner that the bank gets back its principal sum along with some profit which is usually determined in advance.

 

It is leasing of property to a party on the condition that it shall be sold to him after an agreed period on terms and conditions mentioned in the agreement of lease.

 

Consensus. Tech: Consensus of the jurists (mujtahidin) on a certain question in a certain age. It is of two broad types: a) ijma qauli, in which all the jurists give their opinion explicitly; b) ijma sukuti, in which some express their opinion but others do not oppose it.

 

Effort, exertion, industry, diligence. Tech: Endeavour of a jurist to derive or formulate a rule of law on the basis of evidence found in the sources.

 

Relating to the law of partnership, it refers to the intermingling of two investments so that. they cannot be distinguished any more.

 

To accumulate, to amass, to hide wealth. Tech:, Accumulation of wealth without paying zakat due on it. It also refers to unproductive accumulation of wealth.

 

Struggle for earning livelihood through lawful means. It is an important value of Muslim society.

 

Lit: Islamic Economics. Tech: It has been differently defined by different scholars. Some of the definitions are a) Islamic economics is the knowledge and application of injunctions and rules of. the shariah that prevent injustice in the acquisition and disposal of material resources in order to provide satisfaction to human beings and enable them to perform their obligations to Allah and the society. b) Islamic economics aims at the study of human falah achieved by organizing the resources of earth on the basis of co-operation and participation. (c) Islamic economics is the study of the behavior of Muslims who organize the resources, which are a trust, to achieve falah

 

The science of economics, referred to in mediaeval Muslim sources. The goal of this knowledge was management of the household. The economy of the home included the totality of all its human relationships. Home economy was not formed by the market but concentrated on home and farm. It united ethics, economics and politics. Despite an urge for gain, the motives for enterprise were different from the factory production of modern capitalism. The ilm tadbir al-manzil studied the concept of the 'whole house' as distinct from modern economics which emerges from a market economy and concentrates on material aspects of life.

 

Faith. Tech: Faith in the oneness of God, in Muhammad's apostle hood and his finality, in the day of the Judgment, in the unseen matters like angels, revelation, paradise, hell, etc.

 

Faith in the Unseen. Tech: A Muslim's faith in God, prophets, revelation, paradise, hell, angels, etc. lman bit ghaib is a cornerstone of the value system which governs Muslim society. It induces a behavior which is richly imbued in the obedience of God and the Prophet, and a high sense of accountability on the day of Judgment.

 

Relating to the law of partnership, a type of shirkah al-inan, comprehending a variety of business operations as against alinan al-khassah which is limited to a single purchase and resale.

 

Spending, expenditure. Tech: Spending to seek Allah's pleasure, whether to discharge a liability or voluntarily, on the poor, needy or to meet social needs. Al-infaq also covers one's expenditure on one's self, family and relations.

 

The IIIBE was established on 25 March 1981 by the DMI in Cyprus. Its objectives were to train people for the growing network of Islamic banks and to undertake research in Islamic economics. The Institute was closed in 1984.

 

Cancellation, revocation. Tech: Cancellation or revocation of a contract of sale. There is a detailed code on al-iqalah in the texts of jurisprudence.

 

The act of bestowing a qatiah (a cut-off piece). Tech: A piece of land donated by the state in the public interest subject to state taxes to a person for self-cultivation. Sometimes the ownership is passed on to the done but at other times only the right to derive benefit is granted and the ownership remains with the state.

 

A piece of land donated to someone by the state on the basis of rent. The ownership rights remain with the state which can always dispose of it in any other manner. See iqta al-tamlik.

 

Assigning of tax-revenue to a person by the state relating to a particular land or area. The done is authorized to collect kharaj from the people and to keep it with himself. He is not required to deposit it with the public treasury. In this case, the land itself is not subject of donation. This type of donation was prevalent during mediaeval Islam.

 

Those pieces of land donated to someone by the state which contain mineral deposits.

 

A piece of land donated to someone by the state on a permanent basis without any liability for tax. Such an iqta is treated as private property of the person to whom donated. The granted land could be dead land (mawat), arable land (amir) or land containing minerals (maadin).

 

To adopt a middle course. Tech: To be moderate between isra] and bukhl. Iqtisad is one of the important values of Muslim society.

 

Food-stuff. Tech: Relating to the law of riba al-fadl. According to some jurists, one of the causes for the prohibition of riba al-fadl lies in the articles of exchange being food-stuff (al-iqtiyat).

 

Concessions in public property such as market places or inaccessible mines given to individuals on payment of certain duties or taxes. They are also known as iqta al-irfaq.

 

Trusts formed out of state lands for the benefit of those who are entitled to such benefits from the bait al-mal. They are governed by the law of waqf.

 

Islamic Research and Training Institute. Established by the Islamic Development Bank, Jeddah, in 1981, it conducts theoretical and concept ional research in the field of Islamic economics and law as well as policy-oriented research regarding Islamic banking, development finance and economic co-operation among Islamic countries.

 

Public utility. See haqq al-irtifaq.

 

Incorporated on 13 March 1983. Besides a head office, it has sixteen branches in Bangladesh. Authorized capital, Taka500 million. Paid-up capital, Taka79.5 million.

 

Incorporated in 1981. Has a branch at Nyala. Paid-up capital, LS25 million.

 

Islamic Bank International of Denmark is the first fully fledged Islamic bank in Europe. The capital is 30 million Danish kroner. Its main aim is to promote the business of Scandinavian companies connected with the Islamic world, to serve other Islamic banks and to provide normal banking activities. IBID claims to operate on a non-interest basis. The parent company, Islamic Banking System (IBS), has among its shareholders the Kuwait Finance House, Abu Dhabi's Ministry of Awqaf prominent Muslim individuals.

 

 See Islamic Bank International of Denmark.

 

 See ICDT.


 

 See ICVTTR.


 

 See ICCICE.



 

 See ICECSA.



 

Established as a result of a decision by the Organization of the Islamic Conference in 1975, the IDB is owned by forty-one member countries of the OIC. The authorized capital is 2 billion Islamic dinars (equivalent to 2 billion SDRs). The subscribed capital of the Bank at the end of 1401H was 1822.67 million Islamic dinars. All member countries have subscribed to the capital but the major contributors are Saudi Arabia, Libya, Kuwait and the UAE. The bank provides development finance to the Muslim countries on the basis of musharakah, mudarabah and qard hasan. The bank claims to follow the principles of the shariah in all its business. The bank also promotes the establishment of Islamic banks and has arrangements for in-house research on Islamic banking and economics. See Islamic Research and Training Institute or IRTI.

 

Currency used to denominate share capital of Islamic Development Bank ,Jeddah. Officially one ID equals one SDR of IMF.

 

 See IFSTAD.


 

Incorporated on 28 December 1982. A subsidiary of DMI, carries out Islamic insurance business. Paid-up capital, US$3 million.

 

Lit: Intemperance, immoderateness, exaggeration, waste. Tech: Covers (a) spending on lawful objects but exceeding moderation in quantity or quality; (b) spending on superfluous objects while necessities are unfulfilled; (c) spending on objects which are incompatible with the economic standard of the majority of the population.

 

Tech: Taxation incumbent on the rural population of fiefs and state domains. It was usually a certain proportion (muqasamah) of the produce of land (sometimes to the extent of 50 per cent of the produce). This was a distortion of the taxation system of the shariah which prescribed ushror kharaj.

 

A measure equal to 6.5 dirhams or 19.5 grams.

 

To borrow. Tech: Commercial commitment of the mudarabah greement by the agent in excess of the capital invested.

 

To receive back the amount to of loan in full by the creditor. Tech: Used in riba-free banking for the operation of a current bank account by cheque.

 

To abstain from begging. Begging has been prohibited in the shariah, except ( a) when a person is under debt and is not finding any means to pay it off; (b) when a natural calamity befalls and destroys one's belonging; (c) when one is poverty-stricken and three persons of his community testify to it. In all these cases one may beg only to the extent of meeting the above needs. In no case is this to be a regular source of income.

 

Being rich. Tech: Feeling rich and independent and thinking oneself capable of getting along without God and His commandment. This is an improper attitude and has been condemned in the Quran.

 

Relating to the sources of Islamic law, it is a deviation, on a certain issue, from the rule of a precedent to another rule for a more relevant legal reason that requires such deviation.

 

To raise a loan. Tech: In a contract of mudarabah or shirkah, the rabb al-mal or other partners may authorize the mudarib or working partners to raise loan in cash for business over and above the business capital.

 

Relating to the sources of Islamic law, it is the unprecedented judgment motivated by public interest to which neither the Quran nor the sunnah explicitly refer.

 

Originally a due imposed on foreign traders in return for protection or a tax paid by strangers and all such Arabs whom no alliance had attached to the Qurashite clans. It was paid in money and did not take into account the value of the land. In the later usage it became a gross amount that was paid according to an agreement.