# IslamicOpenFinance

> Open infrastructure for Islamic finance. IslamicOpenFinance is open infrastructure for Islamic finance: model murabaha, ijarah, musharakah, takaful, sukuk and zakat products, run the Shariah approval workflow, and connect cores and rails when you are ready.

Nothing on this site is a Shariah ruling, an offer or advice. Every institution, person and amount in the demos is fictional. Approving a product is for each institution's own Shariah board and regulator.

## Pages
- [Home](https://islamicopenfinance.com/): IslamicOpenFinance is open infrastructure for Islamic finance: model murabaha, ijarah, musharakah, takaful, sukuk and zakat products, run the Shariah approval workflow, and connect cores and rails when you are ready.
- [Terminal](https://islamicopenfinance.com/terminal/): an interactive demo of murabaha, profit-rate routing, treasury, trade, sukuk, takaful, zakat, agents and the Shariah review workflow (fictional data)
- [Lab](https://islamicopenfinance.com/lab/): a browser sandbox of the contract-typed API
- [Academy](https://islamicopenfinance.com/academy/): learning paths, workshops and webinars
- [Partners](https://islamicopenfinance.com/partners/): the partner programme
- [Sectors](https://islamicopenfinance.com/sectors/): Islamic finance products by sector
- [Directory](https://islamicopenfinance.com/directory/): standard setters, regulators and Shariah authorities with official sources
- [Directory data (JSON)](https://islamicopenfinance.com/directory/directory.json)
- [Calendar](https://islamicopenfinance.com/calendar/): Hijri and Gregorian dates and business days per market
- [Glossary](https://islamicopenfinance.com/glossary/): 221 terms with official sources
- [Brand guide](https://islamicopenfinance.com/brand/)

## Sectors
- [Retail Islamic banking](https://islamicopenfinance.com/sectors/retail-banking/): Customers expect instant, app-first banking; the contracts behind it still run on systems built for interest.
- [Home finance](https://islamicopenfinance.com/sectors/home-finance/): The longest contract a household signs, with ownership changing hands every month.
- [Auto finance](https://islamicopenfinance.com/sectors/auto-finance/): Dealers want a decision at the showroom; the lessor has to own the car before the lease starts.
- [Hajj and Umrah travel and savings](https://islamicopenfinance.com/sectors/hajj-umrah/): Pilgrims save for years; travel packages, quotas and dates all depend on the Hijri calendar.
- [SME and trade finance](https://islamicopenfinance.com/sectors/sme-trade/): Small firms need working capital fast; sale-based finance needs the bank to own the goods first.
- [Corporate treasury](https://islamicopenfinance.com/sectors/corporate-treasury/): Surplus cash needs an Islamic home; shortfalls need liquidity without interest.
- [Food and agriculture supply chains](https://islamicopenfinance.com/sectors/food-supply-chains/): Quality and origin run from farm to shelf; the financing should follow the same goods.
- [Real estate and construction](https://islamicopenfinance.com/sectors/real-estate/): Buildings are financed before they exist; the contract has to follow each stage.
- [Energy and infrastructure projects](https://islamicopenfinance.com/sectors/energy-infrastructure/): Long-lived assets, many parties and decades of payments.
- [E-commerce and marketplaces](https://islamicopenfinance.com/sectors/ecommerce/): Shoppers want to pay over time at checkout; the financier has to buy before it sells.
- [Sovereign and corporate sukuk issuers](https://islamicopenfinance.com/sectors/sukuk-issuers/): Every issuance repeats the same steps; each one is still run by email and spreadsheets.
- [Islamic funds and asset management](https://islamicopenfinance.com/sectors/asset-management/): Screening, purification and distributions have to be provable to investors and boards.
- [Takaful and retakaful](https://islamicopenfinance.com/sectors/takaful/): Participants share risk through a fund the operator manages but does not own.
- [Islamic microfinance](https://islamicopenfinance.com/sectors/microfinance/): Small amounts, many customers and the need for low-cost, fair contracts.
- [Waqf and zakat institutions](https://islamicopenfinance.com/sectors/waqf-zakat/): Donors and beneficiaries both need to see where each amount went.
- [Government and public sector](https://islamicopenfinance.com/sectors/public-sector/): Public finance in Islamic markets needs the same governance and evidence as any bank.

## Glossary
### Shariah fundamentals
- [Riba](https://islamicopenfinance.com/glossary/riba/): An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.
- [Gharar](https://islamicopenfinance.com/glossary/gharar/): Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid.
- [Maysir](https://islamicopenfinance.com/glossary/maysir/): Gambling or games of chance, where gain depends on luck rather than productive exchange; prohibited in Islamic finance.
- [Shariah](https://islamicopenfinance.com/glossary/shariah/): Islamic law and its principles; in finance, the rules that contracts, products and institutions are expected to comply with.
- [Fiqh al-muamalat](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/): The branch of Islamic jurisprudence that governs commercial and financial dealings between people.
- [Maqasid al-Shariah](https://islamicopenfinance.com/glossary/maqasid-al-shariah/): The objectives of Shariah: protecting people's interests and averting harm, used to guide how rules are applied.
- [Riba al-nasiah](https://islamicopenfinance.com/glossary/riba-al-nasiah/): Riba of deferment: an increase stipulated in return for extra time, most commonly on a loan.
- [Riba al-fadl](https://islamicopenfinance.com/glossary/riba-al-fadl/): Riba of excess: an unequal exchange of the same kind of certain goods, such as gold for a larger quantity of gold.
- [Al-ghunm bil-ghurm](https://islamicopenfinance.com/glossary/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.
- [Amanah (trust)](https://islamicopenfinance.com/glossary/amanah/): Holding someone else's property as a trust: the holder is not liable for its loss unless it was caused by misconduct or negligence.
- [Daman (liability for loss)](https://islamicopenfinance.com/glossary/daman/): Possession or obligation that makes the holder answerable for an asset's loss, whatever the cause.
- [Dhimmah (legal capacity for obligations)](https://islamicopenfinance.com/glossary/dhimmah/): The legal capacity in which rights and obligations are held, so that a debt can sit in a person's liability rather than in a specific asset.
- [Ijma (consensus of jurists)](https://islamicopenfinance.com/glossary/ijma/): The consensus of qualified jurists on a ruling, treated as a source of Shariah after the Quran and the Sunnah.
- [Qiyas (analogical reasoning)](https://islamicopenfinance.com/glossary/qiyas/): Extending a ruling from a case covered by the texts to a new case that shares the same underlying cause.
- [Ijtihad (independent juristic reasoning)](https://islamicopenfinance.com/glossary/ijtihad/): The effort of a qualified jurist to derive a ruling on a question the texts do not settle directly.
- [Mujtahid (qualified jurist)](https://islamicopenfinance.com/glossary/mujtahid/): A jurist qualified to perform ijtihad, that is, to derive rulings from the sources by recognised methods.
- [Maslaha (public interest)](https://islamicopenfinance.com/glossary/maslaha/): Benefit or public interest, considered in reaching rulings where the texts are silent, within the principles of Shariah.
- [Istihsan (juristic preference)](https://islamicopenfinance.com/glossary/istihsan/): A recognised method of preferring one ruling over a strict analogy when a stronger consideration justifies it.
- [Urf (custom)](https://islamicopenfinance.com/glossary/urf/): Established custom or business practice, which Shariah recognises when it does not contradict the texts or principles.
- [Usul al-fiqh (principles of jurisprudence)](https://islamicopenfinance.com/glossary/usul-al-fiqh/): The discipline that studies the sources of Shariah and the methods for deriving rulings from them.
- [Khiyar (option to revoke or confirm)](https://islamicopenfinance.com/glossary/khiyar/): A right of one or both parties to confirm or revoke a contract, for example because of a defect, a stipulated condition or a cooling-off period.
- [Bay al-inah (sale and buy-back)](https://islamicopenfinance.com/glossary/bay-al-inah/): Selling an asset on deferred terms and buying it back from the same buyer for a lower spot price. Standard setters disagree on it.
- [Majlis al-aqd (contract session)](https://islamicopenfinance.com/glossary/majlis-al-aqd/): The session in which a contract is concluded; some exchanges, such as currency trades and salam payments, must complete within it.
- [Ta'addi and taqsir (misconduct and negligence)](https://islamicopenfinance.com/glossary/taaddi-and-taqsir/): Misconduct and negligence: the two grounds that make a trustee, agent or mudarib liable for a loss it would otherwise not bear.
- [Tawatu (pre-arrangement)](https://islamicopenfinance.com/glossary/tawatu/): A prior understanding between parties about how linked transactions will unfold, which can change how they are judged.

### Sale-based contracts
- [Murabaha](https://islamicopenfinance.com/glossary/murabaha/): A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.
- [Musawamah](https://islamicopenfinance.com/glossary/musawamah/): A negotiated sale in which the seller does not disclose its cost; the price is simply agreed between the parties.
- [Bay al-muajjal (deferred-payment sale)](https://islamicopenfinance.com/glossary/bay-muajjal/): A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments.
- [Salam](https://islamicopenfinance.com/glossary/salam/): A forward sale: the full price is paid at signing for precisely specified goods to be delivered later.
- [Istisna](https://islamicopenfinance.com/glossary/istisna/): A contract to manufacture or build a specified asset for delivery on a set date, with the price paid in stages or as a lump sum.
- [Tawarruq](https://islamicopenfinance.com/glossary/tawarruq/): Buying an asset on deferred payment and selling it to a third party for cash, to raise liquidity. Its organised form is contested.
- [Bay al-sarf (currency exchange)](https://islamicopenfinance.com/glossary/bay-al-sarf/): An exchange of money for money, of the same or a different currency, which must be settled on the spot.
- [Murabaha to the purchase orderer](https://islamicopenfinance.com/glossary/murabaha-purchase-orderer/): Murabaha in which the customer first asks the bank to buy an asset and promises to buy it from the bank once acquired.
- [Hamish jiddiyyah (security deposit)](https://islamicopenfinance.com/glossary/hamish-jiddiyyah/): A deposit paid by a customer to secure a promise to buy; it covers only actual loss if the promise is broken.
- [Urbun (earnest money)](https://islamicopenfinance.com/glossary/urbun/): An earnest payment made at signing: part of the price if the sale completes, kept by the seller if the buyer withdraws.
- [Bay bithaman ajil (BBA)](https://islamicopenfinance.com/glossary/bay-bithaman-ajil/): A sale at a deferred price, paid later or in instalments; the name used in Malaysian practice for deferred-payment sale financing.
- [Istijrar (supply sale with deferred price)](https://islamicopenfinance.com/glossary/istijrar/): A continuing supply arrangement in which goods are taken over time and priced or paid later, used in trade finance.
- [Ibra (rebate on early settlement)](https://islamicopenfinance.com/glossary/ibra/): Releasing a debtor from part of a debt; in sale-based financing, the rebate of unearned profit when a customer settles early.
- [Parallel istisna](https://islamicopenfinance.com/glossary/parallel-istisna/): A second, independent istisna in which a bank that has agreed to deliver an asset orders it from a manufacturer or contractor.
- [Parallel salam](https://islamicopenfinance.com/glossary/parallel-salam/): A separate, independent salam with a third party that lets a party to a first salam offset its position in the same goods.
- [Qabd (possession)](https://islamicopenfinance.com/glossary/qabd/): Taking possession of an asset, actually or constructively, which many contracts require before the asset can be sold on.
- [Qabd hukmi (constructive possession)](https://islamicopenfinance.com/glossary/qabd-hukmi/): Possession recognised in law without physical delivery, for example through documents, registration or an account entry.
- [Ta'widh (compensation for actual loss)](https://islamicopenfinance.com/glossary/tawidh/): Compensation for the actual loss a creditor suffers from late payment, accepted by some authorities and rejected by others.
- [Gharamah (late-payment penalty paid to charity)](https://islamicopenfinance.com/glossary/gharamah/): A penalty for late payment that the creditor may not keep as income and must direct to charitable purposes.
- [Bay al-bara'ah (sale on an as-is basis)](https://islamicopenfinance.com/glossary/bay-al-baraah/): A sale in which the seller is released from liability for some or all defects in the goods, by agreement with the buyer.
- [Bay al-dayn (sale of debt)](https://islamicopenfinance.com/glossary/bay-al-dayn/): Selling a debt created by a sale or lease to a third party; standard setters set different limits on it.
- [Muzayadah (sale by auction)](https://islamicopenfinance.com/glossary/muzayadah/): A sale in which buyers bid against each other and the asset goes to the highest bidder.
- [Shart jaza'i (penalty clause in istisna)](https://islamicopenfinance.com/glossary/shart-jazai/): An agreed charge on a manufacturer or contractor for late delivery, permitted in istisna and supply contracts.

### Lease, agency and service contracts
- [Ijarah](https://islamicopenfinance.com/glossary/ijarah/): A lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period.
- [Ijarah muntahia bittamleek](https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek/): A lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor.
- [Wakalah](https://islamicopenfinance.com/glossary/wakalah/): Agency: one party appoints another to act on its behalf, with or without a fee.
- [Kafalah](https://islamicopenfinance.com/glossary/kafalah/): A guarantee: a guarantor joins the guaranteed party in assuming a specified liability.
- [Hawalah](https://islamicopenfinance.com/glossary/hawalah/): Transfer of a debt: the obligation to pay moves from the original debtor to another party who accepts it.
- [Ju'alah](https://islamicopenfinance.com/glossary/jualah/): A reward contract: a fee is promised for achieving a specified result and is paid only when the result is delivered.
- [Rahn](https://islamicopenfinance.com/glossary/rahn/): A pledge: an asset held as collateral for a debt, which can be sold to repay it if the debtor defaults.
- [Ijarah mawsufah fi al-dhimmah (forward lease)](https://islamicopenfinance.com/glossary/ijarah-mawsufah-fi-dhimmah/): A forward lease of an asset described by specifications, with use starting on a future date once it is delivered.
- [Ijarah of services](https://islamicopenfinance.com/glossary/ijarah-of-services/): The service side of ijarah: hiring a person's work or a defined service for a specified period and fee.
- [Ujrah (fee)](https://islamicopenfinance.com/glossary/ujrah/): A fee, wage or rent paid for a service, an agency or the use of an asset; the price side of ijarah and paid wakalah.
- [Ijarah thumma al-bai (AITAB, lease then sale)](https://islamicopenfinance.com/glossary/ijarah-thumma-al-bai/): A lease followed by a separate sale of the asset to the lessee at the end, used in Malaysia for vehicle financing.
- [Sub-lease (ijarah from a lessee)](https://islamicopenfinance.com/glossary/sub-lease/): A lease granted by a lessee to a third party over the usufruct it holds, unless the owner has prohibited it.
- [Variable rental (benchmark-linked ijarah rent)](https://islamicopenfinance.com/glossary/variable-rental/): Ijarah rent that is fixed for the first period and then reset by a clear benchmark formula agreed at the start.
- [Fuduli (uncommissioned agent)](https://islamicopenfinance.com/glossary/fuduli/): A person who deals in another's property without authority; the owner may approve or reject the act.
- [Paid agency (wakalah bil ujrah)](https://islamicopenfinance.com/glossary/paid-agency/): An agency in which the agent is paid a fee; the fee must be known, and the arrangement follows the rules of ijarah.
- [Letter of guarantee](https://islamicopenfinance.com/glossary/letter-of-guarantee/): A bank's written guarantee to a beneficiary; AAOIFI and Bank Negara Malaysia take different positions on charging for it.
- [Documentary credit](https://islamicopenfinance.com/glossary/documentary-credit/): A bank's written undertaking to pay a seller, on the buyer's instruction, against presentation of stipulated documents.

### Partnership and investment
- [Mudarabah](https://islamicopenfinance.com/glossary/mudarabah/): A partnership of capital and work: profit is shared by an agreed ratio, while financial loss falls on the capital provider.
- [Musharakah](https://islamicopenfinance.com/glossary/musharakah/): A partnership in which each partner contributes capital; profit is shared as agreed and loss in proportion to capital.
- [Diminishing musharakah](https://islamicopenfinance.com/glossary/diminishing-musharakah/): A partnership in which one partner buys the other's share in stages until it owns the whole asset; common in home finance.
- [Rabb al-mal](https://islamicopenfinance.com/glossary/rabb-al-mal/): The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss.
- [Mudarib](https://islamicopenfinance.com/glossary/mudarib/): The manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee.
- [Profit sharing ratio](https://islamicopenfinance.com/glossary/profit-sharing-ratio/): The agreed split of profit between partners, expressed as a ratio of actual profit, never as a fixed sum or a share of capital.
- [Restricted mudarabah](https://islamicopenfinance.com/glossary/restricted-mudarabah/): A mudarabah in which the capital provider limits where, how or for what the capital may be invested.
- [Unrestricted mudarabah](https://islamicopenfinance.com/glossary/unrestricted-mudarabah/): A mudarabah that leaves the manager free to invest the capital in any permissible business at its discretion.
- [Wakalah bil-istithmar (investment agency)](https://islamicopenfinance.com/glossary/wakalah-bil-istithmar/): Investment agency: the agent invests the principal's funds for a fee, and the profit or loss belongs to the principal.
- [Shirkat al-milk (co-ownership)](https://islamicopenfinance.com/glossary/shirkat-al-milk/): Co-ownership of an asset by two or more parties, whether by choice, as in a joint purchase, or by circumstance, as in inheritance.
- [Shirkah (partnership: inan, mufawadah, abdan, wujuh)](https://islamicopenfinance.com/glossary/shirkah/): Partnership in Islamic law, with classical forms based on capital, work or credit and a rule that losses follow capital.
- [Tanazul (waiver of entitlement)](https://islamicopenfinance.com/glossary/tanazul/): A party's waiver of an entitlement it would otherwise have, such as profit above an agreed ceiling.
- [Muzara'ah (sharecropping partnership)](https://islamicopenfinance.com/glossary/muzaraah/): A partnership in which one party provides land and the other cultivates it, for an agreed share of the crop.
- [Musaqat (irrigation partnership)](https://islamicopenfinance.com/glossary/musaqat/): A partnership in which one party provides fruit trees and the other tends and irrigates them for a share of the fruit.
- [Capital protection (as distinct from a guarantee)](https://islamicopenfinance.com/glossary/capital-protection/): Using permitted methods to safeguard invested capital, which AAOIFI distinguishes from the manager guaranteeing it.
- [Mugharasah (planting partnership)](https://islamicopenfinance.com/glossary/mugharasah/): A partnership in which one party gives bare land to another to plant trees, and they share the trees and fruit.
- [Unit buy-out price (diminishing musharakah)](https://islamicopenfinance.com/glossary/unit-buy-out-price/): The price at which a customer buys the bank's units in a diminishing musharakah: market value or a price agreed at the time.

### Deposits and accounts
- [Wadiah](https://islamicopenfinance.com/glossary/wadiah/): Safekeeping: an asset placed with a custodian to be kept and returned on demand.
- [Qard](https://islamicopenfinance.com/glossary/qard/): A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.
- [Hibah](https://islamicopenfinance.com/glossary/hibah/): A gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.
- [Islamic deposit](https://islamicopenfinance.com/glossary/islamic-deposit/): A deposit product whose principal the Islamic bank is obliged to repay, as distinct from an investment account that shares risk.
- [Profit-sharing investment account (PSIA)](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/): An account whose funds the bank invests, usually as mudarib, with returns based on actual results rather than a promised rate.
- [Unrestricted investment account](https://islamicopenfinance.com/glossary/unrestricted-investment-account/): An investment account whose funds the bank may invest at its discretion and commingle with its own in a pooled portfolio.
- [Restricted investment account](https://islamicopenfinance.com/glossary/restricted-investment-account/): An investment account whose holder limits where, how or for what purpose the bank may invest the funds.
- [Investment account holder](https://islamicopenfinance.com/glossary/investment-account-holder/): A customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim.
- [Wadiah yad amanah](https://islamicopenfinance.com/glossary/wadiah-yad-amanah/): Safekeeping on trust: the custodian holds the asset without using it and is liable only for negligence or misconduct.
- [Tawarruq-based term deposit](https://islamicopenfinance.com/glossary/tawarruq-deposit/): A fixed-return term placement in which the customer sells a commodity to the bank on deferred payment.
- [Current account (Islamic)](https://islamicopenfinance.com/glossary/current-account/): A repayable-on-demand account that AAOIFI treats as a loan to the bank, so the holder is owed the balance and no stipulated benefit.
- [Banking service fee](https://islamicopenfinance.com/glossary/banking-service-fee/): A fee for a banking service that involves no lending, charged as a lump sum or a percentage of the service's value.
- [Safe deposit box (lease of a vault)](https://islamicopenfinance.com/glossary/safe-deposit-box/): A bank service in which a customer leases a vault or box for a fee to keep valuables.

### Sukuk and capital markets
- [Sukuk](https://islamicopenfinance.com/glossary/sukuk/): Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.
- [Sukuk al-ijarah](https://islamicopenfinance.com/glossary/sukuk-al-ijarah/): Sukuk whose holders own leased assets and receive the rent paid by the lessee as their return.
- [Sukuk al-musharakah](https://islamicopenfinance.com/glossary/sukuk-al-musharakah/): Sukuk whose holders are partners in a venture, sharing profit by agreed ratios and loss in proportion to capital.
- [Sukuk al-mudarabah](https://islamicopenfinance.com/glossary/sukuk-al-mudarabah/): Sukuk whose proceeds are capital in a mudarabah managed by the issuer; used by some Islamic banks to raise regulatory capital.
- [Sukuk al-wakalah](https://islamicopenfinance.com/glossary/sukuk-al-wakalah/): Sukuk whose proceeds the obligor invests as agent in a portfolio of eligible assets, for an agreed fee.
- [Periodic distribution](https://islamicopenfinance.com/glossary/periodic-distribution/): The scheduled payment of rent or profit to sukuk holders on set dates during the life of the sukuk.
- [Islamic collective investment scheme](https://islamicopenfinance.com/glossary/islamic-collective-investment-scheme/): An Islamic fund: investors pool money in units of equal value, managed under Shariah rules, sharing in the fund's profit or loss.
- [Shariah screening](https://islamicopenfinance.com/glossary/shariah-screening/): Checking whether a company's business and finances meet Shariah criteria before it can be held in an Islamic fund or index.
- [Asset-backed and asset-based sukuk](https://islamicopenfinance.com/glossary/asset-backed-sukuk/): The distinction between sukuk whose holders have real recourse to the assets and those relying mainly on the obligor's promise to pay.
- [Purchase undertaking](https://islamicopenfinance.com/glossary/purchase-undertaking/): A unilateral promise by the originator or obligor to buy the sukuk assets from the holders at maturity or on default.
- [Special purpose vehicle (SPV)](https://islamicopenfinance.com/glossary/special-purpose-vehicle/): A legal entity set up only for a specific transaction, such as holding sukuk assets for the holders, and kept apart from the originator.
- [Sukuk al-salam](https://islamicopenfinance.com/glossary/sukuk-al-salam/): Certificates that raise salam capital so the goods to be delivered belong to the holders; AAOIFI does not permit trading them.
- [Sukuk al-istisna](https://islamicopenfinance.com/glossary/sukuk-al-istisna/): Certificates that fund the manufacture or construction of an asset, which then belongs to the holders.
- [Sukuk al-murabaha](https://islamicopenfinance.com/glossary/sukuk-al-murabaha/): Certificates that finance goods bought for sale by murabaha; once the goods are delivered, they represent a debt.
- [Sukuk of usufruct (sukuk al-manfa'ah)](https://islamicopenfinance.com/glossary/sukuk-al-manfaah/): Certificates representing ownership of the right to use an asset, or of services, rather than the asset itself.
- [Tradability of sukuk](https://islamicopenfinance.com/glossary/tradability-of-sukuk/): Whether sukuk may be sold on, which depends on what they represent: assets and usufruct, or debts and cash.
- [Investment trustee (sukuk)](https://islamicopenfinance.com/glossary/investment-trustee/): The intermediary that protects sukuk holders' interests, supervises the issue manager and keeps documents and guarantees safe.

### Takaful
- [Takaful](https://islamicopenfinance.com/glossary/takaful/): Mutual cover: participants contribute to a common fund, as donations, to help one another against specified losses.
- [Tabarru](https://islamicopenfinance.com/glossary/tabarru/): The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.
- [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/): The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.
- [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/): In family takaful, the fund holding participants' savings and investment contributions, owned individually by each participant.
- [Shareholders' fund (takaful)](https://islamicopenfinance.com/glossary/shareholders-fund/): The takaful operator's own fund: its capital, fees and expenses, kept apart from the participants' funds.
- [Takaful operator](https://islamicopenfinance.com/glossary/takaful-operator/): The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.
- [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/): The takaful model in which participants appoint the operator as agent to run underwriting and investment for a known fee.
- [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/): A person or business that joins a takaful scheme, contributes to its funds and is entitled to compensation under its terms.
- [Underwriting surplus](https://islamicopenfinance.com/glossary/underwriting-surplus/): What remains in the participants' risk fund after claims, expenses and reserves, plus attributed investment returns.
- [Retakaful](https://islamicopenfinance.com/glossary/retakaful/): Takaful for takaful funds: a takaful undertaking cedes part of its risks to a retakaful fund on behalf of its participants.
- [Qard from the takaful operator](https://islamicopenfinance.com/glossary/operator-qard/): An interest-free loan from the operator's shareholders' fund to cover a deficit in the participants' risk fund, repaid from future surpluses.
- [Wakalah fee (takaful operator)](https://islamicopenfinance.com/glossary/takaful-wakalah-fee/): The fee a takaful operator charges, usually from contributions, for managing the participants' risk fund.
- [Family takaful](https://islamicopenfinance.com/glossary/family-takaful/): Takaful covering risks to people, such as death, disability or illness, often with a savings or investment element.
- [General takaful](https://islamicopenfinance.com/glossary/general-takaful/): Takaful covering property and liability risks, such as motor, fire or travel, typically written for one year.
- [Retakaful commission](https://islamicopenfinance.com/glossary/retakaful-commission/): An amount a retakaful or reinsurance provider pays back to the ceding takaful undertaking for its work in placing the business.

### Social finance and zakat
- [Zakat](https://islamicopenfinance.com/glossary/zakat/): An obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.
- [Nisab](https://islamicopenfinance.com/glossary/nisab/): The minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.
- [Waqf](https://islamicopenfinance.com/glossary/waqf/): An endowment: an asset is dedicated so that its principal is preserved and its benefits go to a stated purpose.
- [Sadaqah](https://islamicopenfinance.com/glossary/sadaqah/): Voluntary charity given to people in need, beyond the obligatory zakat.
- [Qard hasan](https://islamicopenfinance.com/glossary/qard-hasan/): A benevolent loan repaid at face value with no return for the lender, often used for social and hardship lending.
- [Zakat recipients (asnaf)](https://islamicopenfinance.com/glossary/zakat-recipients/): The categories of people and purposes to which zakat may be paid, as set out in the Quran.
- [Cash waqf](https://islamicopenfinance.com/glossary/cash-waqf/): A waqf whose endowed asset is money, invested so that its returns fund the waqf's purpose while the capital is preserved.
- [Nazir (waqf trustee)](https://islamicopenfinance.com/glossary/nazir/): The trustee who manages a waqf according to the founder's conditions; also called the mutawalli.
- [Zakat base](https://islamicopenfinance.com/glossary/zakat-base/): The pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows.
- [Islamic microfinance](https://islamicopenfinance.com/glossary/islamic-microfinance/): Small-scale Islamic finance for low-income households and micro-enterprises, using qard hasan, sales, leases or partnerships.
- [Amil (zakat administrator)](https://islamicopenfinance.com/glossary/amil/): Those employed to collect and administer zakat, one of the eight categories that may receive it.
- [Zakah on trade goods](https://islamicopenfinance.com/glossary/zakah-on-trade-goods/): Zakah on assets held for sale, which are valued and counted towards the zakah base and the nisab.
- [Net assets method (zakah base)](https://islamicopenfinance.com/glossary/zakah-net-assets-method/): AAOIFI's method of computing an institution's zakah base: zakatable assets minus specified liabilities and rights.
- [Waqf khayri (charitable waqf)](https://islamicopenfinance.com/glossary/waqf-khayri/): A waqf whose income or usufruct is dedicated to a charitable purpose.
- [Waqf ahli (family waqf)](https://islamicopenfinance.com/glossary/waqf-ahli/): A waqf whose income goes to specified persons, usually family members, and to charity when none remain.

### Shariah governance
- [Shariah supervisory board](https://islamicopenfinance.com/glossary/shariah-board/): An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.
- [Fatwa](https://islamicopenfinance.com/glossary/fatwa/): A juristic opinion on a Shariah question; in finance, usually a Shariah board's ruling on a product or transaction.
- [Shariah governance system](https://islamicopenfinance.com/glossary/shariah-governance-system/): The institutional arrangements through which an institution ensures independent oversight of its Shariah compliance.
- [Shariah review](https://islamicopenfinance.com/glossary/shariah-review/): A regular compliance function that assesses whether an institution's operations follow Shariah requirements.
- [Shariah audit](https://islamicopenfinance.com/glossary/shariah-audit/): An independent assessment of internal controls, risk management and overall Shariah compliance, usually by internal audit.
- [Shariah non-compliance risk](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/): The operational risk that an institution fails to comply with Shariah rules and principles in its products and services.
- [Purification of income](https://islamicopenfinance.com/glossary/purification/): Giving away, usually to charity, income from a non-compliant source or a Shariah breach, so the institution does not benefit.
- [Central Shariah board](https://islamicopenfinance.com/glossary/central-shariah-board/): A national or regulator-level Shariah authority whose rulings set or harmonise Shariah positions across a jurisdiction.
- [Shariah compliance function](https://islamicopenfinance.com/glossary/shariah-compliance-function/): The internal control function that checks, day to day, that operations follow Shariah board rulings.
- [Islamic window](https://islamicopenfinance.com/glossary/islamic-window/): The part of a conventional institution, such as a branch or unit, that provides Islamic financial services.
- [AAOIFI (Islamic finance standard setter)](https://islamicopenfinance.com/glossary/aaoifi/): The Bahrain-based not-for-profit body that issues Shari'ah, accounting, auditing, governance and ethics standards for Islamic finance.
- [IFSB (Islamic Financial Services Board)](https://islamicopenfinance.com/glossary/ifsb/): The international standard setter that issues prudential standards and guiding principles for Islamic banking, capital markets and takaful.
- [Shariah resolution (board decision)](https://islamicopenfinance.com/glossary/shariah-resolution/): A recorded decision of a Shariah board or committee on a product, transaction or issue, with its reasoning and any dissent.
- [Istifta (request for a Shariah opinion)](https://islamicopenfinance.com/glossary/istifta/): The act of seeking a Shariah opinion on a matter that has occurred or is expected to occur.
- [Conflict of interest (Shariah committee)](https://islamicopenfinance.com/glossary/conflict-of-interest/): A member's interest that could affect a decision; it must be declared, and the member steps out of that matter.
- [Shariah non-compliance event](https://islamicopenfinance.com/glossary/shariah-non-compliance-event/): An actual failure to meet Shariah requirements, which must be confirmed, rectified and, where required, reported to the regulator.
- [External Shariah audit](https://islamicopenfinance.com/glossary/external-shariah-audit/): An independent audit of Shariah governance and compliance by persons outside the institution, appointed by the board.
- [National Shariah authority](https://islamicopenfinance.com/glossary/national-shariah-authority/): A Shariah body set up by national law or government, independent of the regulator, whose rulings bind institutions.
- [Internal Shari'ah Supervision Committee (ISSC)](https://islamicopenfinance.com/glossary/internal-shariah-supervision-committee/): In the UAE, the committee of scholars an Islamic financial institution appoints to supervise its transactions, activities and products.
- [Higher Shari'ah Authority (UAE)](https://islamicopenfinance.com/glossary/higher-shariah-authority/): The UAE's national Shari'ah body whose regulations, standards and resolutions frame institutions' internal Shari'ah committees.
- [Shariah risk management function](https://islamicopenfinance.com/glossary/shariah-risk-management-function/): The function that identifies, measures, monitors and reports Shariah non-compliance risk across the institution.

### Prudential regulation
- [Capital adequacy (Islamic banks)](https://islamicopenfinance.com/glossary/capital-adequacy/): Holding enough capital against risks; for Islamic banks, the IFSB adapts the Basel rules to each Shariah contract.
- [Displaced commercial risk](https://islamicopenfinance.com/glossary/displaced-commercial-risk/): Pressure on an Islamic bank to give up part of its own profit so investment account holders earn a competitive return.
- [Profit equalisation reserve](https://islamicopenfinance.com/glossary/profit-equalisation-reserve/): An amount set aside from mudarabah income to maintain a level of return for investment account holders and the bank over time.
- [Investment risk reserve](https://islamicopenfinance.com/glossary/investment-risk-reserve/): An amount set aside from investment account holders' profit, after the bank's share, to cushion their future investment losses.
- [Alpha factor](https://islamicopenfinance.com/glossary/alpha-factor/): In IFSB capital rules, the share of risk on investment-account-funded assets that is treated as falling on shareholders.
- [Islamic deposit insurance](https://islamicopenfinance.com/glossary/islamic-deposit-insurance/): A deposit protection scheme designed on Islamic lines to protect depositors of Islamic banks if a bank fails.
- [Rate of return risk](https://islamicopenfinance.com/glossary/rate-of-return-risk/): The risk that changes in market rates affect an Islamic bank's net income; the analogue of interest rate risk in the banking book.
- [Fiduciary risk](https://islamicopenfinance.com/glossary/fiduciary-risk/): The risk that an institution fails to meet the standards that apply to its duties as trustee or manager of others' funds.
- [Institutions offering Islamic financial services (IIFS)](https://islamicopenfinance.com/glossary/institutions-offering-islamic-financial-services/): The IFSB's umbrella term for Islamic banks, takaful institutions, Islamic windows and other Islamic financial institutions.
- [Operational risk](https://islamicopenfinance.com/glossary/operational-risk/): The risk of loss from failed processes, systems, people or external events; for Islamic institutions it includes Shariah non-compliance risk.
- [Additional Tier 1 sukuk](https://islamicopenfinance.com/glossary/additional-tier-one-sukuk/): Mudarabah sukuk issued by an Islamic bank that count as Additional Tier One capital because they absorb losses and pay discretionary profit.

### Open finance and APIs
- [Open finance](https://islamicopenfinance.com/glossary/open-finance/): Customer-permissioned sharing of financial data, and initiation of services, by licensed third parties through secure interfaces.
- [Application programming interface (API)](https://islamicopenfinance.com/glossary/api/): A defined way for software systems to request data or actions from each other; the technical channel of open finance.
- [Consent (open finance)](https://islamicopenfinance.com/glossary/consent/): The customer's explicit, informed permission for a provider to access specified data or initiate a transaction.
- [Data sharing (open finance)](https://islamicopenfinance.com/glossary/data-sharing/): An open finance service that gives a customer a consolidated view of their data from one or more institutions.
- [Service initiation](https://islamicopenfinance.com/glossary/service-initiation/): An open finance service in which a licensed provider initiates a transaction on a customer's account or product, with consent.
- [Data holder](https://islamicopenfinance.com/glossary/data-holder/): The licensed institution that holds a customer's data and must make it available to authorised providers with the customer's consent.
- [Open finance provider](https://islamicopenfinance.com/glossary/open-finance-provider/): A firm licensed to offer data sharing or service initiation to customers under an open finance regime.
- [API hub](https://islamicopenfinance.com/glossary/api-hub/): A central platform through which institutions and licensed providers connect for open finance, instead of many bilateral links.
- [Strong customer authentication](https://islamicopenfinance.com/glossary/strong-customer-authentication/): Verifying a customer with at least two independent factors, such as something they know, have or are.
- [Regulatory sandbox](https://islamicopenfinance.com/glossary/regulatory-sandbox/): A regulator's framework for testing new financial products with real customers, under agreed conditions and close supervision.
- [Consent withdrawal (open finance)](https://islamicopenfinance.com/glossary/consent-withdrawal/): A user's right to withdraw open finance consent at any time, which providers must explain when consent is given.
- [Trust framework (open finance)](https://islamicopenfinance.com/glossary/trust-framework/): The shared directory, certificates and onboarding rules that let open finance participants identify and trust one another.
- [Unauthorised transaction (open finance)](https://islamicopenfinance.com/glossary/unauthorised-transaction/): A transaction that the user did not consent to, whether it was executed or only initiated.
- [ISO 20022](https://islamicopenfinance.com/glossary/iso-20022/): The international standard for financial messages, with a shared data dictionary and business process catalogue.

### Treasury, liquidity and hedging
- [Commodity murabaha](https://islamicopenfinance.com/glossary/commodity-murabaha/): Interbank and treasury deals in which commodities are bought and sold on deferred payment to place or raise short-term funds.
- [Wa'd (promise)](https://islamicopenfinance.com/glossary/wad/): A unilateral promise to do something in the future; it can be made binding and is used in hedging, sukuk and lease-to-own deals.
- [Muwaadah (mutual promise)](https://islamicopenfinance.com/glossary/muwaadah/): An exchange of promises between two parties for the same future transaction, treated more restrictively than a unilateral wa'd.
- [Tahawwut (hedging)](https://islamicopenfinance.com/glossary/tahawwut/): Hedging; in Islamic finance, risk management transactions built from permissible contracts rather than conventional derivatives.
- [Islamic profit rate swap](https://islamicopenfinance.com/glossary/profit-rate-swap/): An alternative to an interest rate swap that exchanges fixed and floating profit flows through commodity murabaha trades.
- [Islamic FX forward](https://islamicopenfinance.com/glossary/islamic-fx-forward/): A currency hedge built on a binding promise to exchange at an agreed rate on a future date, with the exchange itself done at spot.
- [Islamic cross-currency swap](https://islamicopenfinance.com/glossary/islamic-cross-currency-swap/): An alternative to a cross-currency swap that exchanges profit and principal flows in two currencies through commodity trades.
- [Interbank investment wakalah](https://islamicopenfinance.com/glossary/interbank-investment-wakalah/): An interbank placement in which one bank invests another's funds as agent for a fee, targeting an expected but not guaranteed profit.
- [Collateralised murabahah](https://islamicopenfinance.com/glossary/collateralised-murabahah/): A murabaha placement secured by collateral such as sukuk, used as an Islamic alternative to a repo.
- [Short-term liquidity sukuk](https://islamicopenfinance.com/glossary/liquidity-sukuk/): Short-term, tradable sukuk that Islamic banks hold as liquid assets and use to manage cash, including across borders.
- [Sell and buy back (SBBA)](https://islamicopenfinance.com/glossary/sell-and-buy-back/): An interbank arrangement of an outright sale of securities, promises to reverse it and a later outright sale back at a set price.
- [Muqassah (set-off)](https://islamicopenfinance.com/glossary/muqassah/): Extinguishing a debt owed to a party by a debt that party owes, either by operation of law or by agreement.
- [Islamic interbank money market](https://islamicopenfinance.com/glossary/islamic-interbank-money-market/): The market in which Islamic banks lend surplus liquidity to one another and raise short-term funds without interest.

### Accounting and reporting
- [AAOIFI Financial Accounting Standards (FAS)](https://islamicopenfinance.com/glossary/aaoifi-fas/): The accounting standards AAOIFI issues for Islamic financial institutions, covering contract types and Islamic-specific reporting.
- [Deferred profit](https://islamicopenfinance.com/glossary/deferred-profit/): The profit on a deferred-payment sale that is recognised over the payment period rather than all at once at the sale date.
- [Quasi-equity](https://islamicopenfinance.com/glossary/quasi-equity/): AAOIFI's category for investment accounts and similar risk-sharing funds, presented between liabilities and owners' equity.
- [Off-balance-sheet assets under management](https://islamicopenfinance.com/glossary/off-balance-sheet-assets-under-management/): Assets an institution manages for others, such as restricted investment accounts, that are reported outside its own balance sheet.
- [Investment pool](https://islamicopenfinance.com/glossary/investment-pool/): A group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them.
- [Impairment and credit losses](https://islamicopenfinance.com/glossary/impairment-and-credit-losses/): Recognising losses when financing assets lose value or become doubtful; AAOIFI's standard uses an expected credit loss approach.
- [Takaful accounting](https://islamicopenfinance.com/glossary/takaful-accounting/): Accounting for takaful contracts and funds, which keeps the participants' funds and the operator's own accounts distinct.
- [Promotional gifts and prizes](https://islamicopenfinance.com/glossary/promotional-gifts-and-prizes/): Gifts and prize schemes an institution offers to attract or reward customers, which AAOIFI addresses under specific Shariah and accounting rules.
- [Profit allocation (investment accounts)](https://islamicopenfinance.com/glossary/profit-allocation/): The method for dividing a pool's income between the bank and investment account holders, including reserves and weightages.
- [Ijarah accounting](https://islamicopenfinance.com/glossary/ijarah-accounting/): How lessors and lessees report ijarah contracts, including leases ending in ownership, under AAOIFI's ijarah standard.

### Calendar, settlement and markets
- [Hijri calendar](https://islamicopenfinance.com/glossary/hijri-calendar/): The Islamic lunar calendar of twelve months, used for religious dates, zakat and, in some markets, official and business dates.
- [Lunar month](https://islamicopenfinance.com/glossary/lunar-month/): A month that begins with the new crescent moon and lasts twenty-nine or thirty days; the unit of the Hijri calendar.
- [Hawl](https://islamicopenfinance.com/glossary/hawl/): The full lunar year for which qualifying wealth must be held above the nisab before zakat becomes due on it.
- [Moon sighting](https://islamicopenfinance.com/glossary/moon-sighting/): Observing the new crescent moon to determine the start of a Hijri month; it decides the dates of Ramadan and the Eid holidays.
- [Business day](https://islamicopenfinance.com/glossary/business-day/): A day on which banks, markets or payment systems in a given place are open; the unit for due dates and settlement.
- [Value date](https://islamicopenfinance.com/glossary/value-date/): The date on which a payment or transfer is due to take effect and funds become available to the receiver.
- [Settlement finality](https://islamicopenfinance.com/glossary/settlement-finality/): The point at which a transfer becomes irrevocable and unconditional, so it cannot be unwound even if a participant fails.
- [T+n settlement](https://islamicopenfinance.com/glossary/t-plus-n/): Settlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later.
- [Delivery versus payment](https://islamicopenfinance.com/glossary/delivery-versus-payment/): A settlement mechanism that delivers securities only if payment is made, and makes payment only if delivery occurs.
- [Weekend convention](https://islamicopenfinance.com/glossary/weekend-convention/): Which days count as the weekend in a market; it varies across Islamic-finance markets and drives settlement and due dates.

## Pages (Markdown)
- [IslamicOpenFinance™ | Open infrastructure for Islamic finance](https://islamicopenfinance.com/index.md): IslamicOpenFinance™ is open infrastructure for Islamic finance: model murabaha, ijarah, musharakah, takaful, sukuk and zakat products, run the Shariah approval workflow, and connect cores and rails when you are ready.
- [IslamicOpenFinance™ academy | Learning paths, workshops and webinars](https://islamicopenfinance.com/academy/index.md): Learning paths on Islamic finance contracts as APIs, Shariah governance workflows, sukuk and takaful, open finance in Islamic markets and agents within bounds, with workshops, webinars and seminars. No certificates.
- [IslamicOpenFinance™ brand guide | Logo, colours, type and notifications](https://islamicopenfinance.com/brand/index.md): The IslamicOpenFinance™ brand guide: the logo and its usage rules, colours with their codes, Alexandria and Geist Mono type, icons, notification samples and downloadable files.
- [Islamic finance calendar: Hijri and Gregorian dates, business days per market | IslamicOpenFinance™](https://islamicopenfinance.com/calendar/index.md): Hijri (Umm al-Qura) and Gregorian dates side by side, business days for ten markets with their own weekends, Islamic holidays marked expected until announced, and settlement, schedule and business-day tools.
- [Directory of Islamic finance standard setters, regulators and Shariah authorities | IslamicOpenFinance™](https://islamicopenfinance.com/directory/index.md): A map of the Islamic finance system, from standard setters and fiqh bodies to central banks, regulators, national Shariah authorities, sandboxes and market infrastructure; every entry with an official source and the date it was checked.
- [Interactive examples | IslamicOpenFinance™](https://islamicopenfinance.com/examples/index.md): Widgets built from IslamicOpenFinance™'s own scenarios: notifications, murabaha, Shariah review, takaful, zakat and the market calendar.
- [Glossary of Islamic finance and open finance | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/index.md): 221 Islamic finance and open finance terms in 14 categories, each with a plain definition and its official source.
- [What is AAOIFI Financial Accounting Standards (FAS)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/aaoifi-fas/index.md): The accounting standards AAOIFI issues for Islamic financial institutions, covering contract types and Islamic-specific reporting.
- [What is AAOIFI (Islamic finance standard setter)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/aaoifi/index.md): The Bahrain-based not-for-profit body that issues Shari'ah, accounting, auditing, governance and ethics standards for Islamic finance.
- [What is Additional Tier 1 sukuk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/additional-tier-one-sukuk/index.md): Mudarabah sukuk issued by an Islamic bank that count as Additional Tier One capital because they absorb losses and pay discretionary profit.
- [What is Al-ghunm bil-ghurm? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/al-ghunm-bil-ghurm/index.md): The legal maxim that entitlement to gain comes with liability for loss: whoever takes the profit must also bear the risk.
- [What is Alpha factor? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/alpha-factor/index.md): In IFSB capital rules, the share of risk on investment-account-funded assets that is treated as falling on shareholders.
- [What is Amanah (trust)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/amanah/index.md): Holding someone else's property as a trust: the holder is not liable for its loss unless it was caused by misconduct or negligence.
- [What is Amil (zakat administrator)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/amil/index.md): Those employed to collect and administer zakat, one of the eight categories that may receive it.
- [What is API hub? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/api-hub/index.md): A central platform through which institutions and licensed providers connect for open finance, instead of many bilateral links.
- [What is Application programming interface (API)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/api/index.md): A defined way for software systems to request data or actions from each other; the technical channel of open finance.
- [What is Asset-backed and asset-based sukuk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/asset-backed-sukuk/index.md): The distinction between sukuk whose holders have real recourse to the assets and those relying mainly on the obligor's promise to pay.
- [What is Banking service fee? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/banking-service-fee/index.md): A fee for a banking service that involves no lending, charged as a lump sum or a percentage of the service's value.
- [What is Bay al-bara'ah (sale on an as-is basis)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-al-baraah/index.md): A sale in which the seller is released from liability for some or all defects in the goods, by agreement with the buyer.
- [What is Bay al-dayn (sale of debt)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-al-dayn/index.md): Selling a debt created by a sale or lease to a third party; standard setters set different limits on it.
- [What is Bay al-inah (sale and buy-back)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-al-inah/index.md): Selling an asset on deferred terms and buying it back from the same buyer for a lower spot price. Standard setters disagree on it.
- [What is Bay al-sarf (currency exchange)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-al-sarf/index.md): An exchange of money for money, of the same or a different currency, which must be settled on the spot.
- [What is Bay bithaman ajil (BBA)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-bithaman-ajil/index.md): A sale at a deferred price, paid later or in instalments; the name used in Malaysian practice for deferred-payment sale financing.
- [What is Bay al-muajjal (deferred-payment sale)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/bay-muajjal/index.md): A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments.
- [What is Business day? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/business-day/index.md): A day on which banks, markets or payment systems in a given place are open; the unit for due dates and settlement.
- [What is Capital adequacy (Islamic banks)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/capital-adequacy/index.md): Holding enough capital against risks; for Islamic banks, the IFSB adapts the Basel rules to each Shariah contract.
- [What is Capital protection (as distinct from a guarantee)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/capital-protection/index.md): Using permitted methods to safeguard invested capital, which AAOIFI distinguishes from the manager guaranteeing it.
- [What is Cash waqf? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/cash-waqf/index.md): A waqf whose endowed asset is money, invested so that its returns fund the waqf's purpose while the capital is preserved.
- [What is Central Shariah board? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/central-shariah-board/index.md): A national or regulator-level Shariah authority whose rulings set or harmonise Shariah positions across a jurisdiction.
- [What is Collateralised murabahah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/collateralised-murabahah/index.md): A murabaha placement secured by collateral such as sukuk, used as an Islamic alternative to a repo.
- [What is Commodity murabaha? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/commodity-murabaha/index.md): Interbank and treasury deals in which commodities are bought and sold on deferred payment to place or raise short-term funds.
- [What is Conflict of interest (Shariah committee)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/conflict-of-interest/index.md): A member's interest that could affect a decision; it must be declared, and the member steps out of that matter.
- [What is Consent withdrawal (open finance)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/consent-withdrawal/index.md): A user's right to withdraw open finance consent at any time, which providers must explain when consent is given.
- [What is Consent (open finance)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/consent/index.md): The customer's explicit, informed permission for a provider to access specified data or initiate a transaction.
- [What is Current account (Islamic)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/current-account/index.md): A repayable-on-demand account that AAOIFI treats as a loan to the bank, so the holder is owed the balance and no stipulated benefit.
- [What is Daman (liability for loss)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/daman/index.md): Possession or obligation that makes the holder answerable for an asset's loss, whatever the cause.
- [What is Data holder? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/data-holder/index.md): The licensed institution that holds a customer's data and must make it available to authorised providers with the customer's consent.
- [What is Data sharing (open finance)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/data-sharing/index.md): An open finance service that gives a customer a consolidated view of their data from one or more institutions.
- [What is Deferred profit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/deferred-profit/index.md): The profit on a deferred-payment sale that is recognised over the payment period rather than all at once at the sale date.
- [What is Delivery versus payment? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/delivery-versus-payment/index.md): A settlement mechanism that delivers securities only if payment is made, and makes payment only if delivery occurs.
- [What is Dhimmah (legal capacity for obligations)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/dhimmah/index.md): The legal capacity in which rights and obligations are held, so that a debt can sit in a person's liability rather than in a specific asset.
- [What is Diminishing musharakah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/diminishing-musharakah/index.md): A partnership in which one partner buys the other's share in stages until it owns the whole asset; common in home finance.
- [What is Displaced commercial risk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/displaced-commercial-risk/index.md): Pressure on an Islamic bank to give up part of its own profit so investment account holders earn a competitive return.
- [What is Documentary credit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/documentary-credit/index.md): A bank's written undertaking to pay a seller, on the buyer's instruction, against presentation of stipulated documents.
- [What is External Shariah audit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/external-shariah-audit/index.md): An independent audit of Shariah governance and compliance by persons outside the institution, appointed by the board.
- [What is Family takaful? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/family-takaful/index.md): Takaful covering risks to people, such as death, disability or illness, often with a savings or investment element.
- [What is Fatwa? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/fatwa/index.md): A juristic opinion on a Shariah question; in finance, usually a Shariah board's ruling on a product or transaction.
- [What is Fiduciary risk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/fiduciary-risk/index.md): The risk that an institution fails to meet the standards that apply to its duties as trustee or manager of others' funds.
- [What is Fiqh al-muamalat? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/index.md): The branch of Islamic jurisprudence that governs commercial and financial dealings between people.
- [What is Fuduli (uncommissioned agent)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/fuduli/index.md): A person who deals in another's property without authority; the owner may approve or reject the act.
- [What is General takaful? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/general-takaful/index.md): Takaful covering property and liability risks, such as motor, fire or travel, typically written for one year.
- [What is Gharamah (late-payment penalty paid to charity)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/gharamah/index.md): A penalty for late payment that the creditor may not keep as income and must direct to charitable purposes.
- [What is Gharar? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/gharar/index.md): Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid.
- [What is Hamish jiddiyyah (security deposit)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/hamish-jiddiyyah/index.md): A deposit paid by a customer to secure a promise to buy; it covers only actual loss if the promise is broken.
- [What is Hawalah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/hawalah/index.md): Transfer of a debt: the obligation to pay moves from the original debtor to another party who accepts it.
- [What is Hawl? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/hawl/index.md): The full lunar year for which qualifying wealth must be held above the nisab before zakat becomes due on it.
- [What is Hibah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/hibah/index.md): A gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.
- [What is Higher Shari'ah Authority (UAE)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/higher-shariah-authority/index.md): The UAE's national Shari'ah body whose regulations, standards and resolutions frame institutions' internal Shari'ah committees.
- [What is Hijri calendar? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/hijri-calendar/index.md): The Islamic lunar calendar of twelve months, used for religious dates, zakat and, in some markets, official and business dates.
- [What is Ibra (rebate on early settlement)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ibra/index.md): Releasing a debtor from part of a debt; in sale-based financing, the rebate of unearned profit when a customer settles early.
- [What is IFSB (Islamic Financial Services Board)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ifsb/index.md): The international standard setter that issues prudential standards and guiding principles for Islamic banking, capital markets and takaful.
- [What is Ijarah accounting? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah-accounting/index.md): How lessors and lessees report ijarah contracts, including leases ending in ownership, under AAOIFI's ijarah standard.
- [What is Ijarah mawsufah fi al-dhimmah (forward lease)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah-mawsufah-fi-dhimmah/index.md): A forward lease of an asset described by specifications, with use starting on a future date once it is delivered.
- [What is Ijarah muntahia bittamleek? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek/index.md): A lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor.
- [What is Ijarah of services? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah-of-services/index.md): The service side of ijarah: hiring a person's work or a defined service for a specified period and fee.
- [What is Ijarah thumma al-bai (AITAB, lease then sale)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah-thumma-al-bai/index.md): A lease followed by a separate sale of the asset to the lessee at the end, used in Malaysia for vehicle financing.
- [What is Ijarah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijarah/index.md): A lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period.
- [What is Ijma (consensus of jurists)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijma/index.md): The consensus of qualified jurists on a ruling, treated as a source of Shariah after the Quran and the Sunnah.
- [What is Ijtihad (independent juristic reasoning)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ijtihad/index.md): The effort of a qualified jurist to derive a ruling on a question the texts do not settle directly.
- [What is Impairment and credit losses? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/impairment-and-credit-losses/index.md): Recognising losses when financing assets lose value or become doubtful; AAOIFI's standard uses an expected credit loss approach.
- [What is Institutions offering Islamic financial services (IIFS)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/institutions-offering-islamic-financial-services/index.md): The IFSB's umbrella term for Islamic banks, takaful institutions, Islamic windows and other Islamic financial institutions.
- [What is Interbank investment wakalah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/interbank-investment-wakalah/index.md): An interbank placement in which one bank invests another's funds as agent for a fee, targeting an expected but not guaranteed profit.
- [What is Internal Shari'ah Supervision Committee (ISSC)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/internal-shariah-supervision-committee/index.md): In the UAE, the committee of scholars an Islamic financial institution appoints to supervise its transactions, activities and products.
- [What is Investment account holder? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/investment-account-holder/index.md): A customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim.
- [What is Investment pool? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/investment-pool/index.md): A group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them.
- [What is Investment risk reserve? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/investment-risk-reserve/index.md): An amount set aside from investment account holders' profit, after the bank's share, to cushion their future investment losses.
- [What is Investment trustee (sukuk)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/investment-trustee/index.md): The intermediary that protects sukuk holders' interests, supervises the issue manager and keeps documents and guarantees safe.
- [What is Islamic collective investment scheme? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-collective-investment-scheme/index.md): An Islamic fund: investors pool money in units of equal value, managed under Shariah rules, sharing in the fund's profit or loss.
- [What is Islamic cross-currency swap? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-cross-currency-swap/index.md): An alternative to a cross-currency swap that exchanges profit and principal flows in two currencies through commodity trades.
- [What is Islamic deposit insurance? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-deposit-insurance/index.md): A deposit protection scheme designed on Islamic lines to protect depositors of Islamic banks if a bank fails.
- [What is Islamic deposit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-deposit/index.md): A deposit product whose principal the Islamic bank is obliged to repay, as distinct from an investment account that shares risk.
- [What is Islamic FX forward? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-fx-forward/index.md): A currency hedge built on a binding promise to exchange at an agreed rate on a future date, with the exchange itself done at spot.
- [What is Islamic interbank money market? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-interbank-money-market/index.md): The market in which Islamic banks lend surplus liquidity to one another and raise short-term funds without interest.
- [What is Islamic microfinance? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-microfinance/index.md): Small-scale Islamic finance for low-income households and micro-enterprises, using qard hasan, sales, leases or partnerships.
- [What is Islamic window? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/islamic-window/index.md): The part of a conventional institution, such as a branch or unit, that provides Islamic financial services.
- [What is ISO 20022? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/iso-20022/index.md): The international standard for financial messages, with a shared data dictionary and business process catalogue.
- [What is Istifta (request for a Shariah opinion)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/istifta/index.md): The act of seeking a Shariah opinion on a matter that has occurred or is expected to occur.
- [What is Istihsan (juristic preference)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/istihsan/index.md): A recognised method of preferring one ruling over a strict analogy when a stronger consideration justifies it.
- [What is Istijrar (supply sale with deferred price)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/istijrar/index.md): A continuing supply arrangement in which goods are taken over time and priced or paid later, used in trade finance.
- [What is Istisna? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/istisna/index.md): A contract to manufacture or build a specified asset for delivery on a set date, with the price paid in stages or as a lump sum.
- [What is Ju'alah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/jualah/index.md): A reward contract: a fee is promised for achieving a specified result and is paid only when the result is delivered.
- [What is Kafalah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/kafalah/index.md): A guarantee: a guarantor joins the guaranteed party in assuming a specified liability.
- [What is Khiyar (option to revoke or confirm)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/khiyar/index.md): A right of one or both parties to confirm or revoke a contract, for example because of a defect, a stipulated condition or a cooling-off period.
- [What is Letter of guarantee? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/letter-of-guarantee/index.md): A bank's written guarantee to a beneficiary; AAOIFI and Bank Negara Malaysia take different positions on charging for it.
- [What is Short-term liquidity sukuk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/liquidity-sukuk/index.md): Short-term, tradable sukuk that Islamic banks hold as liquid assets and use to manage cash, including across borders.
- [What is Lunar month? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/lunar-month/index.md): A month that begins with the new crescent moon and lasts twenty-nine or thirty days; the unit of the Hijri calendar.
- [What is Majlis al-aqd (contract session)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/majlis-al-aqd/index.md): The session in which a contract is concluded; some exchanges, such as currency trades and salam payments, must complete within it.
- [What is Maqasid al-Shariah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/maqasid-al-shariah/index.md): The objectives of Shariah: protecting people's interests and averting harm, used to guide how rules are applied.
- [What is Maslaha (public interest)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/maslaha/index.md): Benefit or public interest, considered in reaching rulings where the texts are silent, within the principles of Shariah.
- [What is Maysir? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/maysir/index.md): Gambling or games of chance, where gain depends on luck rather than productive exchange; prohibited in Islamic finance.
- [What is Moon sighting? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/moon-sighting/index.md): Observing the new crescent moon to determine the start of a Hijri month; it decides the dates of Ramadan and the Eid holidays.
- [What is Mudarabah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/mudarabah/index.md): A partnership of capital and work: profit is shared by an agreed ratio, while financial loss falls on the capital provider.
- [What is Mudarib? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/mudarib/index.md): The manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee.
- [What is Mugharasah (planting partnership)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/mugharasah/index.md): A partnership in which one party gives bare land to another to plant trees, and they share the trees and fruit.
- [What is Mujtahid (qualified jurist)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/mujtahid/index.md): A jurist qualified to perform ijtihad, that is, to derive rulings from the sources by recognised methods.
- [What is Muqassah (set-off)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/muqassah/index.md): Extinguishing a debt owed to a party by a debt that party owes, either by operation of law or by agreement.
- [What is Murabaha to the purchase orderer? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/murabaha-purchase-orderer/index.md): Murabaha in which the customer first asks the bank to buy an asset and promises to buy it from the bank once acquired.
- [What is Murabaha? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/murabaha/index.md): A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.
- [What is Musaqat (irrigation partnership)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/musaqat/index.md): A partnership in which one party provides fruit trees and the other tends and irrigates them for a share of the fruit.
- [What is Musawamah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/musawamah/index.md): A negotiated sale in which the seller does not disclose its cost; the price is simply agreed between the parties.
- [What is Musharakah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/musharakah/index.md): A partnership in which each partner contributes capital; profit is shared as agreed and loss in proportion to capital.
- [What is Muwaadah (mutual promise)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/muwaadah/index.md): An exchange of promises between two parties for the same future transaction, treated more restrictively than a unilateral wa'd.
- [What is Muzara'ah (sharecropping partnership)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/muzaraah/index.md): A partnership in which one party provides land and the other cultivates it, for an agreed share of the crop.
- [What is Muzayadah (sale by auction)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/muzayadah/index.md): A sale in which buyers bid against each other and the asset goes to the highest bidder.
- [What is National Shariah authority? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/national-shariah-authority/index.md): A Shariah body set up by national law or government, independent of the regulator, whose rulings bind institutions.
- [What is Nazir (waqf trustee)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/nazir/index.md): The trustee who manages a waqf according to the founder's conditions; also called the mutawalli.
- [What is Nisab? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/nisab/index.md): The minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.
- [What is Off-balance-sheet assets under management? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/off-balance-sheet-assets-under-management/index.md): Assets an institution manages for others, such as restricted investment accounts, that are reported outside its own balance sheet.
- [What is Open finance provider? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/open-finance-provider/index.md): A firm licensed to offer data sharing or service initiation to customers under an open finance regime.
- [What is Open finance? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/open-finance/index.md): Customer-permissioned sharing of financial data, and initiation of services, by licensed third parties through secure interfaces.
- [What is Operational risk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/operational-risk/index.md): The risk of loss from failed processes, systems, people or external events; for Islamic institutions it includes Shariah non-compliance risk.
- [What is Qard from the takaful operator? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/operator-qard/index.md): An interest-free loan from the operator's shareholders' fund to cover a deficit in the participants' risk fund, repaid from future surpluses.
- [What is Paid agency (wakalah bil ujrah)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/paid-agency/index.md): An agency in which the agent is paid a fee; the fee must be known, and the arrangement follows the rules of ijarah.
- [What is Parallel istisna? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/parallel-istisna/index.md): A second, independent istisna in which a bank that has agreed to deliver an asset orders it from a manufacturer or contractor.
- [What is Parallel salam? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/parallel-salam/index.md): A separate, independent salam with a third party that lets a party to a first salam offset its position in the same goods.
- [What is Participants' investment fund? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/participants-investment-fund/index.md): In family takaful, the fund holding participants' savings and investment contributions, owned individually by each participant.
- [What is Participants' risk fund? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/participants-risk-fund/index.md): The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.
- [What is Periodic distribution? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/periodic-distribution/index.md): The scheduled payment of rent or profit to sukuk holders on set dates during the life of the sukuk.
- [What is Profit allocation (investment accounts)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/profit-allocation/index.md): The method for dividing a pool's income between the bank and investment account holders, including reserves and weightages.
- [What is Profit equalisation reserve? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/profit-equalisation-reserve/index.md): An amount set aside from mudarabah income to maintain a level of return for investment account holders and the bank over time.
- [What is Islamic profit rate swap? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/profit-rate-swap/index.md): An alternative to an interest rate swap that exchanges fixed and floating profit flows through commodity murabaha trades.
- [What is Profit-sharing investment account (PSIA)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/index.md): An account whose funds the bank invests, usually as mudarib, with returns based on actual results rather than a promised rate.
- [What is Profit sharing ratio? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/profit-sharing-ratio/index.md): The agreed split of profit between partners, expressed as a ratio of actual profit, never as a fixed sum or a share of capital.
- [What is Promotional gifts and prizes? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/promotional-gifts-and-prizes/index.md): Gifts and prize schemes an institution offers to attract or reward customers, which AAOIFI addresses under specific Shariah and accounting rules.
- [What is Purchase undertaking? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/purchase-undertaking/index.md): A unilateral promise by the originator or obligor to buy the sukuk assets from the holders at maturity or on default.
- [What is Purification of income? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/purification/index.md): Giving away, usually to charity, income from a non-compliant source or a Shariah breach, so the institution does not benefit.
- [What is Qabd hukmi (constructive possession)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/qabd-hukmi/index.md): Possession recognised in law without physical delivery, for example through documents, registration or an account entry.
- [What is Qabd (possession)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/qabd/index.md): Taking possession of an asset, actually or constructively, which many contracts require before the asset can be sold on.
- [What is Qard hasan? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/qard-hasan/index.md): A benevolent loan repaid at face value with no return for the lender, often used for social and hardship lending.
- [What is Qard? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/qard/index.md): A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.
- [What is Qiyas (analogical reasoning)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/qiyas/index.md): Extending a ruling from a case covered by the texts to a new case that shares the same underlying cause.
- [What is Quasi-equity? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/quasi-equity/index.md): AAOIFI's category for investment accounts and similar risk-sharing funds, presented between liabilities and owners' equity.
- [What is Rabb al-mal? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/rabb-al-mal/index.md): The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss.
- [What is Rahn? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/rahn/index.md): A pledge: an asset held as collateral for a debt, which can be sold to repay it if the debtor defaults.
- [What is Rate of return risk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/rate-of-return-risk/index.md): The risk that changes in market rates affect an Islamic bank's net income; the analogue of interest rate risk in the banking book.
- [What is Regulatory sandbox? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/regulatory-sandbox/index.md): A regulator's framework for testing new financial products with real customers, under agreed conditions and close supervision.
- [What is Restricted investment account? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/restricted-investment-account/index.md): An investment account whose holder limits where, how or for what purpose the bank may invest the funds.
- [What is Restricted mudarabah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/restricted-mudarabah/index.md): A mudarabah in which the capital provider limits where, how or for what the capital may be invested.
- [What is Retakaful commission? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/retakaful-commission/index.md): An amount a retakaful or reinsurance provider pays back to the ceding takaful undertaking for its work in placing the business.
- [What is Retakaful? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/retakaful/index.md): Takaful for takaful funds: a takaful undertaking cedes part of its risks to a retakaful fund on behalf of its participants.
- [What is Riba al-fadl? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/riba-al-fadl/index.md): Riba of excess: an unequal exchange of the same kind of certain goods, such as gold for a larger quantity of gold.
- [What is Riba al-nasiah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/riba-al-nasiah/index.md): Riba of deferment: an increase stipulated in return for extra time, most commonly on a loan.
- [What is Riba? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/riba/index.md): An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.
- [What is Sadaqah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sadaqah/index.md): Voluntary charity given to people in need, beyond the obligatory zakat.
- [What is Safe deposit box (lease of a vault)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/safe-deposit-box/index.md): A bank service in which a customer leases a vault or box for a fee to keep valuables.
- [What is Salam? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/salam/index.md): A forward sale: the full price is paid at signing for precisely specified goods to be delivered later.
- [What is Sell and buy back (SBBA)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sell-and-buy-back/index.md): An interbank arrangement of an outright sale of securities, promises to reverse it and a later outright sale back at a set price.
- [What is Service initiation? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/service-initiation/index.md): An open finance service in which a licensed provider initiates a transaction on a customer's account or product, with consent.
- [What is Settlement finality? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/settlement-finality/index.md): The point at which a transfer becomes irrevocable and unconditional, so it cannot be unwound even if a participant fails.
- [What is Shareholders' fund (takaful)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shareholders-fund/index.md): The takaful operator's own fund: its capital, fees and expenses, kept apart from the participants' funds.
- [What is Shariah audit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-audit/index.md): An independent assessment of internal controls, risk management and overall Shariah compliance, usually by internal audit.
- [What is Shariah supervisory board? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-board/index.md): An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.
- [What is Shariah compliance function? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-compliance-function/index.md): The internal control function that checks, day to day, that operations follow Shariah board rulings.
- [What is Shariah governance system? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-governance-system/index.md): The institutional arrangements through which an institution ensures independent oversight of its Shariah compliance.
- [What is Shariah non-compliance event? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-non-compliance-event/index.md): An actual failure to meet Shariah requirements, which must be confirmed, rectified and, where required, reported to the regulator.
- [What is Shariah non-compliance risk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/index.md): The operational risk that an institution fails to comply with Shariah rules and principles in its products and services.
- [What is Shariah resolution (board decision)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-resolution/index.md): A recorded decision of a Shariah board or committee on a product, transaction or issue, with its reasoning and any dissent.
- [What is Shariah review? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-review/index.md): A regular compliance function that assesses whether an institution's operations follow Shariah requirements.
- [What is Shariah risk management function? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-risk-management-function/index.md): The function that identifies, measures, monitors and reports Shariah non-compliance risk across the institution.
- [What is Shariah screening? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah-screening/index.md): Checking whether a company's business and finances meet Shariah criteria before it can be held in an Islamic fund or index.
- [What is Shariah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shariah/index.md): Islamic law and its principles; in finance, the rules that contracts, products and institutions are expected to comply with.
- [What is Shart jaza'i (penalty clause in istisna)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shart-jazai/index.md): An agreed charge on a manufacturer or contractor for late delivery, permitted in istisna and supply contracts.
- [What is Shirkah (partnership: inan, mufawadah, abdan, wujuh)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shirkah/index.md): Partnership in Islamic law, with classical forms based on capital, work or credit and a rule that losses follow capital.
- [What is Shirkat al-milk (co-ownership)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/shirkat-al-milk/index.md): Co-ownership of an asset by two or more parties, whether by choice, as in a joint purchase, or by circumstance, as in inheritance.
- [What is Special purpose vehicle (SPV)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/special-purpose-vehicle/index.md): A legal entity set up only for a specific transaction, such as holding sukuk assets for the holders, and kept apart from the originator.
- [What is Strong customer authentication? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/strong-customer-authentication/index.md): Verifying a customer with at least two independent factors, such as something they know, have or are.
- [What is Sub-lease (ijarah from a lessee)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sub-lease/index.md): A lease granted by a lessee to a third party over the usufruct it holds, unless the owner has prohibited it.
- [What is Sukuk al-ijarah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-ijarah/index.md): Sukuk whose holders own leased assets and receive the rent paid by the lessee as their return.
- [What is Sukuk al-istisna? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-istisna/index.md): Certificates that fund the manufacture or construction of an asset, which then belongs to the holders.
- [What is Sukuk of usufruct (sukuk al-manfa'ah)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-manfaah/index.md): Certificates representing ownership of the right to use an asset, or of services, rather than the asset itself.
- [What is Sukuk al-mudarabah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-mudarabah/index.md): Sukuk whose proceeds are capital in a mudarabah managed by the issuer; used by some Islamic banks to raise regulatory capital.
- [What is Sukuk al-murabaha? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-murabaha/index.md): Certificates that finance goods bought for sale by murabaha; once the goods are delivered, they represent a debt.
- [What is Sukuk al-musharakah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-musharakah/index.md): Sukuk whose holders are partners in a venture, sharing profit by agreed ratios and loss in proportion to capital.
- [What is Sukuk al-salam? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-salam/index.md): Certificates that raise salam capital so the goods to be delivered belong to the holders; AAOIFI does not permit trading them.
- [What is Sukuk al-wakalah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk-al-wakalah/index.md): Sukuk whose proceeds the obligor invests as agent in a portfolio of eligible assets, for an agreed fee.
- [What is Sukuk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/sukuk/index.md): Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.
- [What is T+n settlement? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/t-plus-n/index.md): Settlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later.
- [What is Ta'addi and taqsir (misconduct and negligence)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/taaddi-and-taqsir/index.md): Misconduct and negligence: the two grounds that make a trustee, agent or mudarib liable for a loss it would otherwise not bear.
- [What is Tabarru? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tabarru/index.md): The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.
- [What is Tahawwut (hedging)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tahawwut/index.md): Hedging; in Islamic finance, risk management transactions built from permissible contracts rather than conventional derivatives.
- [What is Takaful accounting? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/takaful-accounting/index.md): Accounting for takaful contracts and funds, which keeps the participants' funds and the operator's own accounts distinct.
- [What is Takaful operator? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/takaful-operator/index.md): The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.
- [What is Takaful participant? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/takaful-participant/index.md): A person or business that joins a takaful scheme, contributes to its funds and is entitled to compensation under its terms.
- [What is Wakalah fee (takaful operator)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/takaful-wakalah-fee/index.md): The fee a takaful operator charges, usually from contributions, for managing the participants' risk fund.
- [What is Takaful? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/takaful/index.md): Mutual cover: participants contribute to a common fund, as donations, to help one another against specified losses.
- [What is Tanazul (waiver of entitlement)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tanazul/index.md): A party's waiver of an entitlement it would otherwise have, such as profit above an agreed ceiling.
- [What is Tawarruq-based term deposit? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tawarruq-deposit/index.md): A fixed-return term placement in which the customer sells a commodity to the bank on deferred payment.
- [What is Tawarruq? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tawarruq/index.md): Buying an asset on deferred payment and selling it to a third party for cash, to raise liquidity. Its organised form is contested.
- [What is Tawatu (pre-arrangement)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tawatu/index.md): A prior understanding between parties about how linked transactions will unfold, which can change how they are judged.
- [What is Ta'widh (compensation for actual loss)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tawidh/index.md): Compensation for the actual loss a creditor suffers from late payment, accepted by some authorities and rejected by others.
- [What is Tradability of sukuk? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/tradability-of-sukuk/index.md): Whether sukuk may be sold on, which depends on what they represent: assets and usufruct, or debts and cash.
- [What is Trust framework (open finance)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/trust-framework/index.md): The shared directory, certificates and onboarding rules that let open finance participants identify and trust one another.
- [What is Ujrah (fee)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/ujrah/index.md): A fee, wage or rent paid for a service, an agency or the use of an asset; the price side of ijarah and paid wakalah.
- [What is Unauthorised transaction (open finance)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/unauthorised-transaction/index.md): A transaction that the user did not consent to, whether it was executed or only initiated.
- [What is Underwriting surplus? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/underwriting-surplus/index.md): What remains in the participants' risk fund after claims, expenses and reserves, plus attributed investment returns.
- [What is Unit buy-out price (diminishing musharakah)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/unit-buy-out-price/index.md): The price at which a customer buys the bank's units in a diminishing musharakah: market value or a price agreed at the time.
- [What is Unrestricted investment account? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/unrestricted-investment-account/index.md): An investment account whose funds the bank may invest at its discretion and commingle with its own in a pooled portfolio.
- [What is Unrestricted mudarabah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/unrestricted-mudarabah/index.md): A mudarabah that leaves the manager free to invest the capital in any permissible business at its discretion.
- [What is Urbun (earnest money)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/urbun/index.md): An earnest payment made at signing: part of the price if the sale completes, kept by the seller if the buyer withdraws.
- [What is Urf (custom)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/urf/index.md): Established custom or business practice, which Shariah recognises when it does not contradict the texts or principles.
- [What is Usul al-fiqh (principles of jurisprudence)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/usul-al-fiqh/index.md): The discipline that studies the sources of Shariah and the methods for deriving rulings from them.
- [What is Value date? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/value-date/index.md): The date on which a payment or transfer is due to take effect and funds become available to the receiver.
- [What is Variable rental (benchmark-linked ijarah rent)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/variable-rental/index.md): Ijarah rent that is fixed for the first period and then reset by a clear benchmark formula agreed at the start.
- [What is Wa'd (promise)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wad/index.md): A unilateral promise to do something in the future; it can be made binding and is used in hedging, sukuk and lease-to-own deals.
- [What is Wadiah yad amanah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wadiah-yad-amanah/index.md): Safekeeping on trust: the custodian holds the asset without using it and is liable only for negligence or misconduct.
- [What is Wadiah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wadiah/index.md): Safekeeping: an asset placed with a custodian to be kept and returned on demand.
- [What is Wakalah bil-istithmar (investment agency)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wakalah-bil-istithmar/index.md): Investment agency: the agent invests the principal's funds for a fee, and the profit or loss belongs to the principal.
- [What is Wakalah model (takaful)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wakalah-model/index.md): The takaful model in which participants appoint the operator as agent to run underwriting and investment for a known fee.
- [What is Wakalah? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/wakalah/index.md): Agency: one party appoints another to act on its behalf, with or without a fee.
- [What is Waqf ahli (family waqf)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/waqf-ahli/index.md): A waqf whose income goes to specified persons, usually family members, and to charity when none remain.
- [What is Waqf khayri (charitable waqf)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/waqf-khayri/index.md): A waqf whose income or usufruct is dedicated to a charitable purpose.
- [What is Waqf? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/waqf/index.md): An endowment: an asset is dedicated so that its principal is preserved and its benefits go to a stated purpose.
- [What is Weekend convention? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/weekend-convention/index.md): Which days count as the weekend in a market; it varies across Islamic-finance markets and drives settlement and due dates.
- [What is Net assets method (zakah base)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/zakah-net-assets-method/index.md): AAOIFI's method of computing an institution's zakah base: zakatable assets minus specified liabilities and rights.
- [What is Zakah on trade goods? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/zakah-on-trade-goods/index.md): Zakah on assets held for sale, which are valued and counted towards the zakah base and the nisab.
- [What is Zakat base? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/zakat-base/index.md): The pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows.
- [What is Zakat recipients (asnaf)? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/zakat-recipients/index.md): The categories of people and purposes to which zakat may be paid, as set out in the Quran.
- [What is Zakat? | IslamicOpenFinance™](https://islamicopenfinance.com/glossary/zakat/index.md): An obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.
- [IslamicOpenFinance™ lab | Try the API in your browser](https://islamicopenfinance.com/lab/index.md): Accounts with their contract basis, balances, instalment payments with an Idempotency-Key, murabaha quotes and webhook events, in a sandbox that runs in your browser.
- [Legal notices](https://islamicopenfinance.com/legal/notices/index.md): The notices that apply to IslamicOpenFinance™ material on this site and in our emails: who it is for, and what it is not.
- [Partner with IslamicOpenFinance™ | Partner programme](https://islamicopenfinance.com/partners/index.md): The IslamicOpenFinance™ partner programme: Islamic banks, windows and takaful operators, integrators, connector builders, Shariah advisory firms and scholars, universities and communities. No commissions and no "certified partner" badges.
- [Sectors | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/index.md): IslamicOpenFinance™ for every sector: Islamic finance products, value-chain actors and a typical flow, from retail banking and home finance to sukuk issuers, takaful and zakat institutions.
- [Islamic funds and asset management | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/asset-management/index.md): Screening, purification and distributions have to be provable to investors and boards. Shariah screening, Purification of income, Subscriptions and redemptions and more for Islamic funds and asset management on IslamicOpenFinance™.
- [Auto finance | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/auto-finance/index.md): Dealers want a decision at the showroom; the lessor has to own the car before the lease starts. Ijarah at the dealer, Murabaha car finance, Lessor maintenance and takaful and more for Auto finance on IslamicOpenFinance™.
- [Corporate treasury | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/corporate-treasury/index.md): Surplus cash needs an Islamic home; shortfalls need liquidity without interest. Commodity murabaha placements, Wakalah investment, Liquidity sukuk holdings and more for Corporate treasury on IslamicOpenFinance™.
- [E-commerce and marketplaces | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/ecommerce/index.md): Shoppers want to pay over time at checkout; the financier has to buy before it sells. Murabaha at checkout, Profit-rate routing, Takaful at sale and more for E-commerce and marketplaces on IslamicOpenFinance™.
- [Energy and infrastructure projects | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/energy-infrastructure/index.md): Long-lived assets, many parties and decades of payments. Project sukuk, Construction istisna, Forward lease and more for Energy and infrastructure projects on IslamicOpenFinance™.
- [Food and agriculture supply chains | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/food-supply-chains/index.md): Quality and origin run from farm to shelf; the financing should follow the same goods. Salam for harvests, Input murabaha, Commodity-linked liquidity and more for Food and agriculture supply chains on IslamicOpenFinance™.
- [Hajj and Umrah travel and savings | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/hajj-umrah/index.md): Pilgrims save for years; travel packages, quotas and dates all depend on the Hijri calendar. Goal-based savings, Operator payments, Hijri-aware schedule and more for Hajj and Umrah travel and savings on IslamicOpenFinance™.
- [Home finance | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/home-finance/index.md): The longest contract a household signs, with ownership changing hands every month. Diminishing musharakah, Ijarah muntahia bittamleek, Valuation and title evidence and more for Home finance on IslamicOpenFinance™.
- [Islamic microfinance | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/microfinance/index.md): Small amounts, many customers and the need for low-cost, fair contracts. Micro-murabaha, Qard hasan, Group products and more for Islamic microfinance on IslamicOpenFinance™.
- [Government and public sector | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/public-sector/index.md): Public finance in Islamic markets needs the same governance and evidence as any bank. Sovereign sukuk programmes, Shariah governance workflow, Treasury placements and more for Government and public sector on IslamicOpenFinance™.
- [Real estate and construction | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/real-estate/index.md): Buildings are financed before they exist; the contract has to follow each stage. Istisna for construction, Parallel istisna, Ijarah on completion and more for Real estate and construction on IslamicOpenFinance™.
- [Retail Islamic banking | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/retail-banking/index.md): Customers expect instant, app-first banking; the contracts behind it still run on systems built for interest. Murabaha personal financing, Qard and wadiah current accounts, Profit-sharing investment accounts and more for Retail Islamic banking on IslamicOpenFinance™.
- [SME and trade finance | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/sme-trade/index.md): Small firms need working capital fast; sale-based finance needs the bank to own the goods first. Stock murabaha, Salam for production, Istisna for manufacturing and more for SME and trade finance on IslamicOpenFinance™.
- [Sovereign and corporate sukuk issuers | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/sukuk-issuers/index.md): Every issuance repeats the same steps; each one is still run by email and spreadsheets. Issuance workflow, Subscription book, Asset register and more for Sovereign and corporate sukuk issuers on IslamicOpenFinance™.
- [Takaful and retakaful | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/takaful/index.md): Participants share risk through a fund the operator manages but does not own. Contribution split, Claims from the risk fund, Surplus handling and more for Takaful and retakaful on IslamicOpenFinance™.
- [Waqf and zakat institutions | IslamicOpenFinance™](https://islamicopenfinance.com/sectors/waqf-zakat/index.md): Donors and beneficiaries both need to see where each amount went. Zakat assessment (illustrative), Collection, Eligibility and disbursement and more for Waqf and zakat institutions on IslamicOpenFinance™.
- [IslamicOpenFinance™ terminal | Contracts, governance and rails in one place](https://islamicopenfinance.com/terminal/index.md): A live, interactive demo of the IslamicOpenFinance™ terminal: murabaha with ownership before sale, profit-rate routing, treasury, trade documents, sukuk, takaful, an illustrative zakat estimate, agents with human approval, the Shariah review workflow, notifications, the API explorer, failure simulation and evidence.

## Optional
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## Blog
- [Why a murabaha API needs an ownership step before the sale](https://islamicopenfinance.com/blog/murabaha-ownership-step.md): In murabaha the bank must own the asset and bear its risk before selling it. Systems that record the sale first break the contract, however smooth the user experience.
- [No licence means all rights reserved: public code is not free code](https://islamicopenfinance.com/blog/license-no-license.md): A public repository without a licence file does not grant permission to use, change or share the code. Here is why, and what to do when you find one.
- [Islamic open finance: the same APIs, different contracts underneath](https://islamicopenfinance.com/blog/islamic-open-finance-same-apis.md): Open finance moves data and instructions the same way for every product. What changes for Islamic finance is what the data describes: ownership, profit ratios and funds that belong to participants.
- [What a licence is: copyright by default, permission by licence](https://islamicopenfinance.com/blog/license-what-is.md): Code, text and data have an owner from the moment they are created. A licence is how the owner tells everyone else what they may do, and on what conditions.

## Podcast episodes
- [Islamic Finance in a Minute, episode 3: Ijarah](https://islamicopenfinance.com/podcasts/term-ijarah.md): A lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period. (Lease, agency and service contracts)
- [Islamic open finance: the same APIs, different contracts underneath](https://islamicopenfinance.com/podcasts/week-2026-10-05.md): Open finance moves data and instructions the same way for every product. What changes for Islamic finance is what the data describes: ownership, profit ratios and funds that belong to participants. Plus this week's business calendar: 5 business days.
- [Islamic Finance in a Minute, episode 2: Murabaha](https://islamicopenfinance.com/podcasts/term-murabaha.md): A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments. (Sale-based contracts)
- [Islamic Finance in a Minute, episode 1: Riba](https://islamicopenfinance.com/podcasts/term-riba.md): An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods. (Shariah fundamentals)
- [What a licence is: copyright by default, permission by licence](https://islamicopenfinance.com/podcasts/licensing-2026-10-04.md): Code, text and data have an owner from the moment they are created. A licence is how the owner tells everyone else what they may do, and on what conditions. Plus this week's business calendar: 5 business days.

## Feeds and APIs
- [Blog RSS](https://islamicopenfinance.com/blog/feed.xml)
- [Podcast RSS (weekly)](https://islamicopenfinance.com/podcasts/feed.xml)
- [Podcast RSS (daily term)](https://islamicopenfinance.com/podcasts/daily/feed.xml)
- [Blog JSON](https://islamicopenfinance.com/api/blog/posts)
- [Podcast JSON](https://islamicopenfinance.com/api/podcasts)
- [Term of the day](https://islamicopenfinance.com/api/glossary/today)
- [Calendar API (OpenAPI 3.1)](https://islamicopenfinance.com/api/calendar/openapi.json)