Islamic Finance Glossary
Key Islamic finance terms explained in plain English — your go-to reference for the language of ethical finance. More terms added regularly.
Islamic Finance ↗
التمويل الإسلاميA financial system operating according to Shariah — built on fairness, transparency, risk-sharing, and ethical investing.
Shariah ↗
شريعةIslamic law derived from the Quran and Sunnah (teachings of Prophet Muhammad ﷺ). It provides the ethical and legal framework for Islamic finance.
Riba ↗
رباInterest or usury — any guaranteed, predetermined return on a loan or investment. Strictly prohibited in Islam as it leads to exploitation and inequality.
Riba al-Nasiah ↗
ربا النسيئةInterest on loans based on time delay — the most common form of riba in modern banking. A charge for deferring repayment.
Riba al-Fadl ↗
ربا الفضلExcess in exchange — trading the same type of commodity in unequal amounts. Prohibited to ensure fairness in trade.
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