Understanding Islamic Finance - Doha Academy of Tertiary Studies

Glossary 493Qirād: Another name for Mudarabah – partnership in which a person or a group of people providesfunds while another provides entrepreneurship for conducting the business.Qirād mithl: Matching rate in Qirad/Mudarabah, which has to be paid to the Mudarib if theMudarabah/Muqaradah contract becomes voidable due to any technical reason.Qirsh: A coin of inferior metals used in ancient Iraq for making payment.Qisās: A provision of Islamic law to punish those who cause any harm to human life – a murderer isexecuted to death in exchange.Qiyami or Qimi: Nonfungible goods; the value of each unit of which is different.Qiyās: Analogy – literally it means to measure or compare for analogy. Technically, it means aderivation of the law on the analogy of an existing law if the basis (‘Illah) of the two is the same. Itis one of the sources of Islamic law.Ra’asul-māl: Principal amount of a loan or a debt or money invested in a business.Rā‘iee: In charge – one who is responsible for his subordinates.Rabbul-māl: The person who invests the capital in a Shirkah/Mudarabah contract.Riba: Literally, an excess or increase. Technically, it means an increase over the principal in a loantransaction, over a debt or in exchange transactions, accrued to the lender/creditor or a party to exchangewithout giving an equivalent counter value or recompense (‘iwad) in return to the other party.Riba Al-Fadl: The quality premium in exchange of low quality with better quality goods, e.g. datesfor dates, wheat for wheat, etc. – an excess in the exchange of Ribawi goods in the case of a singlegenus on both sides. The concept of Riba Al-Fadl refers to exchange/sale transactions.Riba Al-Nasiah: Riba of delay, due to exchange not being immediate with or without excess in one ofthe counter values. It is an increment on the principal of a loan or debt payable. It refers to loan/credittransactions or lending money on the understanding that the borrower will return to the lender atthe end of the period the amount originally lent together with an increase on it, in consideration of thelender having granted him time to pay. Interest, in all modern banking transactions, falls under thepurview of Riba Al-Nasiah.Ribawi: Goods subject to Fiqh rules on Riba in sales – monetary units and items sold by weightand/or by measure, including gold, silver, paper currencies, edible goods like wheat, rice, barley, dates,salt, etc.Ribh-al-mithl: Matching rate of profit.Rihn or Rahn: Pledge, collateral; legally, Rihn means to pledge or lodge a real or corporeal propertyof material value as security for a debt or pecuniary obligation, so as to make it possible for thecreditor to recover the debt, in the case of nonpayment, by selling the pledged property.Rukbān: Grain dealers coming from the tribal/rural areas to the town to sell goods.Sā‘a: A measure that was used for exchanging/trading grains.Sadd al-Zarāi‘: To prohibit a transaction on the grounds of blocking the means to an illicit end.Sahābah: Companions of the holy Prophet of Islam – the people who saw the holy Prophet whilebeing firm believers (Muslims).Salaf: Used in two senses: (i) literally, payment in advance; a loan which draws forth no profit for thecreditor; it includes loans for specified periods, i.e. short, intermediate and long-term loans; slightlydifferent from Qard – an amount given as Salaf cannot be called back, unlike Qard, before it is due.