---
title: "What is Bay al-dayn (sale of debt)? | IslamicOpenFinance™"
description: "Selling a debt created by a sale or lease to a third party; standard setters set different limits on it."
url: https://islamicopenfinance.com/glossary/bay-al-dayn/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Sale-based contracts](https://islamicopenfinance.com/glossary/#sales)

Sale-based contracts

# Bay al-dayn (sale of debt)

Selling a debt created by a sale or lease to a third party; standard setters set different limits on it.

Bay al-dayn is the sale of a debt, such as a receivable created by a murabaha, deferred sale, ijarah or istisna, to someone other than the debtor. Bank Negara Malaysia's compilation of Shariah resolutions describes it as a method of selling debt created under exchange contracts, and its resolutions require the debt to be established and fixed before it is traded, rejecting the sale of an expected debt from a service. AAOIFI's standards are more restrictive: its sukuk standard does not permit trading certificates that represent a monetary debt, such as murabaha certificates after delivery, and subjects others to the rules on disposal of debts. Debt sales therefore need the governing authority identified first.

## Sources

- [Bank Negara Malaysia, Shariah Resolutions in Islamic Finance, second edition, 2010: resolutions on bai\` dayn](https://www.bnm.gov.my/documents/20124/9198675/shariah_resolutions_2nd_edition_EN.pdf)
- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 17, Investment Sukuk, items 5/2/13 to 5/2/15](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

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

[**Murabaha** A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.](https://islamicopenfinance.com/glossary/murabaha/) [**Tradability of sukuk** Whether sukuk may be sold on, which depends on what they represent: assets and usufruct, or debts and cash.](https://islamicopenfinance.com/glossary/tradability-of-sukuk/) [**Sukuk al-murabaha** Certificates that finance goods bought for sale by murabaha; once the goods are delivered, they represent a debt.](https://islamicopenfinance.com/glossary/sukuk-al-murabaha/) [**Hawalah** Transfer of a debt: the obligation to pay moves from the original debtor to another party who accepts it.](https://islamicopenfinance.com/glossary/hawalah/) [**Riba** An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.](https://islamicopenfinance.com/glossary/riba/)

**Sale-based contracts**

1. [Murabaha](https://islamicopenfinance.com/glossary/murabaha/)
2. [Musawamah](https://islamicopenfinance.com/glossary/musawamah/)
3. [Bay al-muajjal (deferred-payment sale)](https://islamicopenfinance.com/glossary/bay-muajjal/)
4. [Salam](https://islamicopenfinance.com/glossary/salam/)
5. [Istisna](https://islamicopenfinance.com/glossary/istisna/)
6. [Tawarruq](https://islamicopenfinance.com/glossary/tawarruq/)
7. [Bay al-sarf (currency exchange)](https://islamicopenfinance.com/glossary/bay-al-sarf/)
8. [Murabaha to the purchase orderer](https://islamicopenfinance.com/glossary/murabaha-purchase-orderer/)

[All 221 terms](https://islamicopenfinance.com/glossary/)