Al-ghunm bil-ghurm
The legal maxim that entitlement to gain comes with liability for loss: whoever takes the profit must also bear the risk.
Al-ghunm bil-ghurm is a legal maxim of Islamic jurisprudence meaning that gain accompanies liability for loss. A party entitled to the profit of an asset or venture must also carry its risk, which is why a seller must own an asset and bear its risk before selling it at a profit. A related maxim, al-kharaj bil-daman, links the right to an asset's yield to responsibility for it.
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
RibaAn increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.MurabahaA sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.MusharakahA partnership in which each partner contributes capital; profit is shared as agreed and loss in proportion to capital.MudarabahA partnership of capital and work: profit is shared by an agreed ratio, while financial loss falls on the capital provider.