R

 Islamic Economic Glossary

Attribute of God as the sustainer of the entire universe. Sustenance includes fostering, bringing up, regulating and completing the evolution of things from the crudest state to that of the highest perfection. God is Rabb of the entire universe. Belief in Him as a sustainer is basic to Islam and defines a large number of socio-economic relations in a Muslim society.

 

Landlord in a contract of muzarah.

 

Owner of capital in a contract of mudarabah.

 

In a mudarabah contract, the person who invests the capital.

 

Owner of capital in a contract of mudarabah.

 

In a mudarabah contract, the person who invests the capital.

 

A buyer in a contract of bai al-salam.

 

Streamlet for irrigation of land. Regarding contract of muzarah in pre-Islamic days, the crop grown on the area irrigated by the rabi was considered to be the share of the landlord.

 

A small, paltry gift. Tech: A small gift from out of ghanimah for non-combatants (ghair ghanimin).

 

Enjoyment of comforts and amenities with humility and obedience to God. See Taraf.

 

Pledge or pawn. Tech: Placing a property under detention and suspension in consideration of a right against its owner to be satisfied out of that property. Also known as al-rahn al-maqbudah.

 

For the buyer to keep something as mortgage in case of a third party's later claim on the goods; withholding a part of the price as a mortgage.

 

Incorporated in December 1980. Has 230 branches in Saudi Arabia.


 

See al-gharb.

 

Ratio of profit-sharing between the owner of the capital and the entrepreneur, who uses these funds on the basis of mudarabah. It is an alternative for or parallel to the rate of interest in the capitalist economy where funds are advanced by one party to the other as a 10:1n. Manipulation in the rate of mudarabah can be made to adjust the supply of and demand for investible funds in the Islamic economy.

 

A weight. Tech: One ratlis 128.57 dirhams or 407.695 grams.

 

A weight equal to 480 dirhams, 12 'uqiyah or 1428.4 grams.

 

A mode of financing adopted by financial institutions in Pakistan, according to which the financial institution provides part of the finance for construction of a house. The client and the financial institution share in the presumptive rent of the house. Since maintenance and taxes are to be paid by the client, a suitable allowance is given to him in the share of the rent. Similarly, the financial institution's share is adjusted upward to provide for administrative expenses. But all legal charges are paid by the client and the house remains mortgaged until the financial institution receives back all due to it.

 

An excess or increase. Tech: An increase which in a loan transaction or in exchange of a commodity accrues to the owner (lender) without giving an equivalent counter-value or recompense ('iwad) in return to the other party; every increase which is without an 'iwad or equal counter-value.

 

An alternate term for riba al-Jadl: the riba which accrues to the money-lender immediately, as in a contract of barter sale. This is in contrast to riba al-nasiah where, the riba accrues after the passage of a term.

 

An alternate term for riba al-fadl.

 

A substitute expression for the Quranic riba or ribaa al-nasiah.

 

A sale transaction of the amwal al-ribawiyyah (those commodities in which the in junction of riba is applicable) in which a commodity is exchanged for the same commodity but unequal in amount and the delivery of at least one commodity is postponed" To avoid riba alfadl, the exchange of commodities from both sides should be equal and instant (yadan hiyadin). Riba al-fadl has been prohibited by the Prophet as a measure to forestall the riba from creeping into the economy through the back door.

 

The riba prevalent in Arabia in pre- Islamic days.

 

Manifest increment. Tech: An alternate term for riba al Quran.

 

Concealed increment. An alternate term for riba al-fadl.

 

Increment on the principal of a loan payable by the borrower. It refers to the practice of lending money for any length oftime on the understanding that the borrower would return to the lender at the end of this period the amount originally lent together with an increment in consideration of the lender having granted him time to pay. The increment was known as riba 'al-nasiah. It was in vogue in Arabia in the days of the Prophet.

 

The riba which has been explicitly prohibited in the Quran. See riba al-sunna.

 

Riba-borne dealings, prevalent in Arabia of the Prophet, prohibited by the sunnah of the Prophet. An alternate term for riba alfadl. See Riba al-Quran.

 

a sale transaction which involves barter exchange of the same commodity in unequal amounts and postponed delivery by either or both parties. An alternate term for riba al-fadl.

 

Doubtful. Tech: Income which has the semblance of riba or which raises doubts about its legality.

 

Usual profit, normal profit. Tech: The rate of profit prevalent in a trade in a competitive market. Although there is no quantitative limit on the rate of profit in the shariah, it is not expected to go beyond al-riba al-mutad. Charging profit over and above this is condemned in a Muslim society.

 

Hidden treasure.

 

To liberate a soul. Tech: One of the eight heads of account mentioned in the Quran on which zakat can be appropriated, meaning to spend money for the liberation of slaves. These days this head of account does not seem to be relevant.

 

In relation to riba-free banking, it has been argued by some people that weight should be given to capital in proportion to its exposure to risk and period of investment before sharing profit or loss, which is the risk exposure factor. Capital at face value is to be multiplied by the r.e.f. for arriving at the effective capital, which see.

 

Livelihood, means of living, subsistence. Tech: It has been used to denote all the resources at the disposal of man on this earth. God speaks of these resources as one of His blessings. Man is accountable to God for his rizq, whereas God has assumed it as His responsibility to provide means of sustenance to all animate beings.

 

Banking instrument of the mediaeval Muslim period. It was a payment order to draw money from the bank.

 

paper slip of the money-changer. Tech: A type of promissory note prevalent in the twelfth century A.D. Muslim world to facilitate retail and wholesale commercial transactions. It was issued by bankers to individual merchants who had actually made payments to the banks, who had money or valuable goods deposited in the bank or who simply were preferred customers.

 

Tech: Giving a property to someone on the condition that if the donor dies before the donee it shall become the property of the donee and his heirs but if the donee dies first the property given shall return to the donor.

 

Good conduct, sensible conduct. Tech: Prudence in the utilization of one's property. Al-rushd is an essential condition for the right to own property in Islam.