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Islamic Finance Terms

Quick-reference glossary of Islamic finance terms & their meaning
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BMT

Also:
Arabic:

Baitulmaal wat Tamwil

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Da’wah

Also:
daawa, dawah, daawah, dakwah
Arabic:
دعوة

Call towards religious teachings

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Sharia

Also:
shariah, shari'ah
Arabic:
شَرِيعَة

Islamic law

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Wakaf

Also:
waqaf, awqaf (plural)
Arabic:

a charitable endowment of property

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Infaq

Also:
Arabic:

charitable spending

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Shodaqoh

Also:
sadaqa, sadaqah
Arabic:

charity

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Tamwil

Also:
Arabic:

commercial funding

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Murabaha

Also:
murabahah
Arabic:

cost-plus-profit

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Fatwa

Also:
fatawa
Arabic:

decree

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Riba

Also:
Arabic:

fixed interest rates

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Haram

Also:
haraam
Arabic:

forbidden

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Qard

Also:
qardh
Arabic:

gauranteed repayment

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Hajj

Also:
Hadj, Hadji, or Haj
Arabic:

greater pilgrimage

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Kafalah

Also:
Arabic:

guarantee

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Sukuk

Also:
shukuk
Arabic:

islamic bonds

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Musharakah

Also:
musharaka
Arabic:

joint venture

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Umrah

Also:
Arabic:

lesser pilgrimage

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Masjid

Also:
Arabic:

mosque

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Zakat

Also:
zakah
Arabic:

obligatory charity

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Halal

Also:
halaal
Arabic:

permissible

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Mudarabah-Musharakah

Also:
mudharabah-musharakah
Arabic:

plural partnership

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Mudarabah

Also:
Arabic:

profit/loss sharing

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Ijtihad

Also:
Arabic:

reasoning

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Hadith

Also:
hadeeth
Arabic:

recorded sunnah

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Eid

Also:
id, eed
Arabic:

religious festival

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Ijarah

Also:
ijara
Arabic:

rental agreement

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Baitulmaal

Also:
baitulmal, baitul mal, baitul maal
Arabic:

social treasury

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Sunnah

Also:
sunna
Arabic:

traditions of the prophet Muhammad ﷺ

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Wadi’ah

Also:
Arabic:

trusteeship

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