SUKUK
Sukuk is the Arabic name for a financial certificate but can be seen as an
Islamic equivalent of bond. However, fixed income, interest bearing
bonds are not permissible in Islam, hence Sukuk are securities that
comply with the Islamic law and its investment principles, which
prohibits the charging, or paying of interest. Financial assets that
comply with the Islamic law can be classified in accordance with their
tradability and non-tradability in the secondary markets.
ZAKAT
Zakāt (Arabic: زكاة) is the Islamic concept of tithing and alms. It is an
obligation on Muslims to pay 2.5% of their wealth to specified
categories in society when their annual wealth exceeds a minimum level
(nisab).
NISAB
In Sharia (Islamic Jurisprudence) Nisab(نصاب)
is the amount which savings or capital or product must exceed in order
for the Muslim owner to be obliged to give zakat. Several hadith have
formulas for calculating nisab. One of the most well known states that
No Zakat is due on wealth until one year passes.
In general, nisab is considered an amount equal to the essential needs
of a person or family for one year. In many modern societies, nisab is
often interpreted to equate a governmentally determined poverty
threshold.
KHUMS
Khums is the Arabic word for One Fifth (1/5). In Islamic legal terminology,
it means "one-fifth of certain items which a person acquires as wealth,
and which must be paid as an Islamic tax"Khums (The Islamic Tax).
SADAKAH
Sadakah is an Islamic term that means "voluntary charity". Prescribed charity is known as Zakat.
WAQF
Waqf is an inalienable religious endowment in Islam, typically devoting a
building or plot of land for Muslim religious or charitable purposes.
It is conceptually similar to the common law trust.
Awqaf were among the most important owners of property in the Islamic
world until recent times, and remain significant. Their incomes support
the upkeep of many mosques; in past times, charitable services such as
hospitals and orphanages were often maintained by awqaf.
The practice of declaring property as waqf gained considerable currency
due to the practice in many Muslim states of expropriating the
properties of important persons, especially officials, when they died
or were disgraced. By declaring his estate as waqf and his descendants
as trustees, a rich man could provide an income for his surviving
family.
BAIT-AL-MAL
Bayt al-mal is an Arabic term that is translated as "House of money." Historically,
it was a financial institution responsible for the administration of
taxes. It served as a royal treasury for the caliphs and sultans,
managing personal finances and government expenditures. Further, it
administered distributions of zakah revenues for public works. Modern
Islamic economists deem the institutional framework appropriate for
contemporary Islamic societies.
MURABAHA
Murabaha is defined as a particular kind of sale, compliant with shariah, where
the seller expressly mentions the cost he has incurred on the
commodities to be sold and sells it to another person by adding some
profit or mark-up thereon which is known to the buyer. It is one of the
most popular modes used by banks in Islamic countries to promote
riba-free transactions. The ratio in which this instrument is being
used varies from bank to bank.
TAKAFUL
Takaful is an Islamic insurance concept which is grounded in Islamic muamalat
(banking transactions), observing the rules and regulations of Islamic
law. This concept has been practised in various forms for over 1400
years. It originates from Arabic word Kafalah, which means
"guaranteeing each other" or "joint guarantee". In principle, the
Takaful system is based on mutual co-operation, responsibility,
assurance, protection and assistance between groups of participants. It
is a form of mutual insurance.
INHERITANCE
Islamic Inheritance jurisprudence is the field of Islamic Jurisprudence (Arabic: fiqh) that deals with
inheritance, a topic that is prominently dealt with in the Qur'an.
SHARI'A
Shari'a (Arabic: شريعة transliteration: Sharī‘ah) is the body of Islamic law.
The term means "way" or "path"; it is the legal framework within which
the public and some private aspects of life are regulated for those
living in a legal system based on Muslim principles of jurisprudence.
