S

 Islamic Economic Glossary

A cubic measure of varying magnitude, Tech: One sa equals 8 rat! (in Hanafite school) or 5.33 ratl in other schools. In Hanafite school it is equivalent to 3.2615 kg, whereas in other schools it is equivalent to 2.172 kg. For measuring liquids, it is equal to 3.363 liters according to Hanafites and 2.748 liters according to others.

 

Patience. Tech: A value of Islamic society. Muslims are enjoined to bear economic hardship with patience and not to feel inclined towards acquiring resources by unlawful means. It does not preclude, however, protest against economic injustice and exploitation.

 

Charity. Tech: In its widest sense it means an attitude of mutual appreciation, affection, mutual assistance, an act of loyalty to God and to one's fellow beings, a sense of true human hood. At material level it consists of two kinds: al-sadaqah altatawwu given at the free will of the donor and zakat, the obligatory tax imposed by the Quran on the wealth of every Muslim having wealth beyond a certain limit.

 

A small sum levied on all Muslims having income above a certain exemption level to be paid during the month of Ramadan to the poor people of the community. This sadaqah is obligatory and is an important part of the overall system of sadaqat in Islam.

 

A form of charity, benefits of which continue to accrue over generations, such as building a mosque, providing a well for drinking-water and constructing inns for travelers, etc. The range of al-sadaqah al-jariyah is very broad. The establishment of charitable trusts (awqaf) is an important example, Muslims have been exhorted by the Prophet to invest their wealth in sadaqah al-jariyah with rich promises of reward in the Hereafter. Spending on such acts carries a high value in Muslim society.

 

Contribution required before seeking private consultation with the Prophet. This was made obligatory for a short time but abrogated subsequently,

 

Zakat on the grazing animal, See also al-sawaim,

 

Compulsory charity such as zakat, sadaqah al-fitr, etc. It also includes penal charity for such sins as breaking of oath, breaking of fast, etc.

 

Relating to the nisab of zakat, a camel in its eighth year.

 

Official designation for informal partnership during Fatimide and Ayubide Egypt.

 

Compulsory charity such as zakat, sadaqah al-fitr, etc. It also includes penal charity for such sins as breaking of oath, breaking of fast, etc.

 

Relating to the nisab of zakat, a camel in its eighth year.

 

Official designation for informal partnership during Fatimide and Ayubide Egypt.

 

Foolishness, imprudence. Tech: The quality of squandering wealth recklessly and against the spirit of the shan'ah. It includes israf and tabdhir. The quality of safahah invites the law of hajr by which the state can impose such restrictions on the utilization of assets as may be necessary to safeguard personal and social interests. One who has the quality of safahah is known as al-saJih (plural, sufaha), which is the antonym of al-rashid. Sufaha include minor children, lunatics, extravagant persons and those who spend money to promote evil in the society. See al-hajr also.

 

See al-safahah.

 

Share taken by the leader of an army before division of booty, such as horse or a sword. The term was later used as sawafi (singular, safiya) lands or possessions which the sultan (ruler) appropriated exclusively for himself. It also means all lands which their owners have abandoned or the owners of which have died leaving no heirs.

 

Striking of the hand of one person upon the hand of another in ratifying a sale or purchase and a covenant. It is also used to signify the contract that is itself made in the case of a sale.

 

Finance secretary in fourteenth century Muslim Spain. See also musharrif.

 

See bait al-maal.

 

In a contract of bai al-inah, the borrower.

 

An officer of the Muslim government responsible for the collection and administration of al-kharaj.

 

Tax-collector. Tech: Tax-collector in the market who would take as tax more than what is due. Such a dishonest official has been condemned by the Prophet.

 

In a mudarabah contract, the person who provides the capital. See also rabbal-mal.

 

Relating to the law of zakat, one who possesses wealth in excess of the exemption-limit. Also used for one who possesses sufficient means to offer sacrifice or make the pilgrimage to Mecca. See also nisab.

 

Guardian of the market. Tech: An alternate term for the muhtasib before the latter term gained currency.

 

The messenger. Tech: Zakat-collector who visits people at their places to collect the zakat.

 

Product of the sea, such as fish, amber and pearls. They are a free, natural gift and fall in the category of public property.

 

A property that has been abandoned by its owner without transferring it to someone else.

 

Stableman. Tech: The person who used to collect zakat on cattle.

 

Order of payment. Tech: The term was in vogue during the Muslim period. The sakk was a payment order on a banker with whom a person had an account.

 

Advance payment, prepayment, free-loan, non-interest bearing loan. Tech: It includes loans for specified periods, i._. short, intermediate and long-term loans. But if it is to be paid on demand, it is called qard.

 

See bai al-salam.

 

Guardian of the market. Tech: An alternate term for the muhtasib before the latter term gained currency.

 

The messenger. Tech: Zakat-collector who visits people at their places to collect the zakat.

 

Product of the sea, such as fish, amber and pearls. They are a free, natural gift and fall in the category of public property.

 

A property that has been abandoned by its owner without transferring it to someone else.

 

Camels which work on wells to irrigate land. Half-ushr is levied on the produce of the land worked by al-sawani.

 

Offer for sale (a commodity). Tech: It implies distracting a customer by offering a lower price or superior quality of an article; for instance, 2 persons might offer a certain commodity for a certain price, but another person might say, 'I can sell you the same thing for a lower price.' In modern language it implies to undersell a commodity or to dump goods at a lower price on the market.

 

See Statistical Economic and Social Research and Training Centre for Islamic Countries.

 

A person, who owns an immovable property adjacent to the immovable property sold, has a right of pre-emption.

 

A participant in the immunities and appendages of immovable property sold, such as the right of passage, the right of passage of water or the right of irrigation.

 

A person who is a co-owner of some undivided immovable property with another person or persons.

 

Relating to the administration of iqta in India of the sixteenth century A.D. The shahnah performed the functions of an amir who, instead of the muqta (assignee), governed the khalissah areas.

 

A grain of barley. Tech: Weight equivalent to 0.06 grams and a measure of length equivalent to 0.320 cm.

 

The way. Tech: The way of Allah as shown by the Quran and the sunnah of the Prophet. It is generally spoken to mean the Islamic law.

 

Span of the hand. Tech: A measure of length equal to 12 fingers, or 9 inches or 23.1 cm.

 

A contract between two or more persons who launch a business or financial enterprise to make profits.

 

Partnership between two or more persons in skill, mental or physical labour only (without capital). They accept workjointly, perform it according to their agreement and share the profit. This is also known as shirkah al-sana'a.

 

An alternate term for shirkah al-abdan.

 

A contract of partnership where each partner brings in some capital in the shape of money and all the partners contribute their labour and skill, agreeing to share the profit.

 

Contractual partnership. Tech: Two or more persons may continue to carry on business on the condition that the capital and the profit will be shared among them. This is distinguished from shirkah al-mulk, which is partnership in joint property.

 

An alternate term for shirkah al-abdan.

 

An association in which the communality consists of each partner sharing in the obligations incurred by his colleagues. This is a type of partnership in which partners do not invest any capital but instead authorize each other to buy on credit on the condition that each will be responsible for half the cost of the other's purchases and share in a like manner in the profit of their resale.

 

An alternate term for shirkah al-abdaan.

 

Partnership by compulsion exists if a purchaser purchases goods in the presence of a person who is a bonafide dealer in the particular commodity and the dealer has reason to believe that the goods are being purchased for him as usual. The bonafide dealer will be treated as a partner of the purchaser provided that the purchaser does not declare in anticipation to have purchased the goods for himself.

 

A partnership agreement in which the partners may have equal equity but unequal rights to profit, unequal equity with equal rights to profit or with unequal equity and unequal rights to profit.

 

Partnership of the penniless. Tech: It comes about when two or more people form a partnership without any capital to buy merchandise on credit and then sell it. Also known as shirkah al-wujuh.

 

Proprietary partnership. Tech: A proprietary partnership occurs when two persons inherit or purchase something together. Neither of them is permitted to dispose off the other's portion except with the other's permission. Each of them is considered a stranger in regard to the other's portion.

 

A contract of partnership in which all the partners are equal in respect of equity, and the right to conduct business for cash or credit. All of them are mutual agents and mutual sureties for one another.

 

See shirkah al-abdan.

 

A contract of partnership among two or more partners who share the liabilities of the business created by anyone of them.

 

A subsidiary of DMI. Main objective is to conduct Islamic insurance business. Started operations in late 1984. Paid-up capital, US$10 million.

 

The condition that they would accept orders from customers concerning their trade and skill jointly and share income from the trade. It is also known as shirkah al-taqabbul.

 

A partnership agreement in which one partner assumes unlimited liability of the business debt while the other partner remains liable to the extent of his own capital.

 

Partnership between two or more persons carrying on business on credit only (without investment of capital). They purchase goods on credit on the basis of their goodwill and then sell them and try to make profit.

 

Right of pre-emption. Tech: Acquiring a vendor's property at the price for which the vendor has sold it. The right of preemption is a power of possessing property which is for sale. It applies only to immovable property. It appertains in the first place to the co-sharer or partner in the property; secondly, to a sharer in the immunities and appendages of the property such as the right to water or to road; thirdly, to the neighbors.

 

Stinginess, avarice. Tech: Petty-mindedness in interpersonal relationships. Shuhh leads one to selfishness, callousness and to disproportionate love for wealth.

 

Gratitude. Tech: A value of the Muslim society by virtue of which an individual acknowledges the bounties of Allah and expresses gratitude by tongue and actions, which are those actions one has been enjoined to carry out through obedience to Allah. It includes putting physical resources and faculties to their proper use. Their improper use contradicts shukr and is termed kufr.

 

See thaman al-mithl.

 

See Specific Investment Certificates.

 

See Specific Investment Deposits.

 

Originally it meant a 'minting die' to test the fineness and weight of the coin. The same word subsequently came to be used for the mint as an office providing for and checking these marks.

 

Commodity.

 

Middleman. Tech: One who sells on behalf of others.

 

A proposed instrument of riba-free banking, the certificates offered by commercial banks to savers. These certificates would carry the name of an enterprise in which the value of the certificate would be invested. They would be exactly like stocks held by a member bank for a particular customer. The advantages include: use of bank's expertise and its block-vote as a representative of more than one stock holder.

 

Proposed financial instrument of riba-free economy. Indicates deposits with commercial banks with specific purposes and defined maturities.

 

A mudarabah contract with one specific purpose or objective.

 

Founded in 1978 and based at Ankara, the centre, in cooperation with the IDB, Jeddah, and the Turkish Institute for Statistics is supposed to expand into a data bank in which all data relevant to economic policy in the Islamic world are available. The centre performs policy oriented studies for experts and ministerial meetings of which a number have appeared in the Journal for Economic Co-operation among Islamic Countries, published by the centre since 1979.

 

Zakat-collectors, especially on animals and on agricultural property.

 

Pasturing animals. Tech: Those animals which are bred and pastured that they may grow. It excludes animals kept for riding, for work or for carrying of loads.