Bahrain
Islamic Bank (BIB)
- Incorporated on 7 March 1979, operations began on 22
November 1979. Authorized capital, BD23 million. Subscribed
capital, BD11.5 million, and paid-up capital, BD5.75
million.
Bai Al Malaqih
- Sale of the embryo or sale of what is in the womb of the
female.
Bai Al Mawquf (Al)
- An agreement of sale which is lawful in substance and
description but is concluded with the consent of a third
party who does not have an absolute right of ownership over
the property of the buyer or the seller. For example, bai
al-fuduli.
Bai Al Muhaqlah
- A type of business transaction whereby grains in ears are
sold for dry grain.
Bai (Al)
- A contract of sale. Tech: Sale of definite goods or
property with the free consent of parties for a definite
price. It involves proposal (ijab) and acceptance (qabul).It
has many types.
Bai AI SaIam
- It is defined as advance payment for goods which are to be
delivered later. According to normal rules no sale can be
affected unless the goods are in existence at the time of
the bargain, but this sort of sale forms an exception to the
general rule provided the goods are defined and the date of
delivery is fixed. The objects of this sale are mostly
fungible things and cannot be gold or silver because they
are regarded as monetary values. Barring this, bai al-salam
covers almost all things which are capable of being
definitely described as to quantity, quality and
workmanship. One of the conditions of this contract is
advance payment; the parties cannot reserve their option of
rescinding it but the option of revoking it on account of a
defect in the subject matter is allowed. It is also applied
to a mode of financing adopted by Islamic banks. It is
usually applied in the agricultural sector where the bank
advances money for various inputs to receive a share in the
crop (which the bank sells in the market).
Bai AI Subrah
- A form of sales contract in which a heap of food grains
(or any other commodity) is sold without measuring or
weighing.
Bai Ajilin Bi Ajilin
- Sale of something to be delivered immediately for a price
to be paid later. Tech: This is an alternate term for bai
al-muajjal.
Bai Ajlin Bi Ajilin
- Sale of something to be delivered later for a price to be
paid immediately. Tech: It is an alternate term for bai
al-salam.
Bai Al Aariyyah
- A sale in which some trees in the garden are donated by
the owner to the poor who can get fresh fruit off these
trees in exchange for the dry ones for household consumption
and not for further sale. It is also known as bai al-araya.
Bai Al Asnam
- Sale of idols, including the earnings of a sculptor.
Bai Al Batil (Al)
- An agreement of sale which is unlawful in respect of its
substance and description. For example, an agreement of sale
concluded by a lunatic or a minor is batil since it does not
possess the substance of the agreement which is the proposal
and acceptance by a sane or major person. Similarly, an
agreement to sell a dead body or alcohol is not lawful since
it involves exchange of mal for something valueless (ghair
mutaqawwam).
Bai Al Dain Bil Dain
- Lit: Sale of a debt for a debt. Tech: A person agrees to
sell a commodity to be delivered later for a price which he
already owes to the intending buyer. Thus both the price as
well as the product are in the form of debts.
Bai Al Fasid (Al)
- An agreement of sale which is lawful in its substance but
unlawful in respect of its description. The substance of the
agreement refers to proposal, acceptance and the article of
sale. The description refers to characteristics other than
the substance, such as the price of the article of sale. If
an agreement of sale for a definite article is concluded by
proposal and acceptance but the price is not settled, the
agreement would be fasid although it is enforceable
(munaqad) so far as its substance is concerned.
Bai Al Fuduli
- An agreement of sale concluded by someone on the property
of another without the permission of the latter.
Bai Al Gharar
- A sale involving a risk. Aleatory sale. Tech: It is to
sell a thing which one does not have in one:::s possession
nor one expects to bring it under one`s control, such as
fish in the river or birds in the air. Possession is one of
the basic conditions for a valid contract of sale. One
cannot sell a thing which is not in one`s possession; it
involves risk for the buyer. Bai al-gharar is also a general
term for all such sale deals which do not specify the
commodity of sale or price or time of sale or where the
ability of the seller to deliver the commodity is absent.
Bai Al Hadir Li Bad
- Sale by the urbanite for the nomadic. Tech: A type of
business practice in the days of the Prophet whereby some
people worked as agents of the grain-sellers from rural
areas and all grain was sold through these agents. These
agents earned profit both from the seller and the buyer and
often deprived the cultivator of his just profit and the
buyer of a just price.
Bai Al Hasah
- A type of business transaction in pre- Islamic Arabia
where the contract was concluded by the buyer throwing
pebbles towards the merchandise, the one hit by the pebble
becoming the object sold. (alternate term Bai::: bi ilqa
al-alhajar)
Bai Al Iinah
- A contract of sale where a person sells an article on
credit and then buys back at a lesser price for cash.
Example: A asks a loan of $10 from B. B, instead of asking
for interest on this loan applies a contrivance. He sells an
article to A for $12 on credit and then buys back from him
the same article for cash at $10.
Bai Al Istijrar
- A sales contract in which a person agrees to pay in lump
sum in advance and receives the commodities gradually in
instilment
Bai Al Istiman
- A contract of sale in which the sale price is settled by
accepting unquestionably the statement of the seller
(regarding cost, etc.).
Bai Al Istisna
- A contract of sale in which a supplier (craftsman or
manufacturer) is asked to supply goods of definite
specifications at agreed rates, place and time of delivery.
Bai Al Kali Bil Kali
- A postponement or delay in the payment of a debt. Tech: A
type of credit sales in which on the date of the discharge
of the debt the debtor seeks extension with the promise to
pay something in addition. In fact the amount of debt is
sold to the debtor for some profit. What is meant by this
is, a man:::s buying a thing on credit for a certain period
and when the period of payment comes and he does not find
anything to pay, he says to the creditor: sell it to m_ on
credit for a further period for something additional. On
this the creditor sells it to him. It may also refer to a
man who pays money for wheat or the like, to be given at a
certain time and when the time comes the debtor says, I do
not have wheat, etc., but you sell your debt to me on credit
for a certain period with an increment`.
Bai Al Khamar
- ale of alcoholic drinks. It includes the preparation,
filtration, carriage, storage and all allied activities,
including the sale of containers and utensils of alcoholic
drinks.
Bai Al Khiyar
- Conditional sale. A sales contract which provides an
option to the buyer to annul it.
Bai Al Mabrur (Al)
- A sales contract which has no concealment of facts,
dishonesty or doubt.
Bai Al Madamin
- Sale of the contents. Tech: A sales contract in which a
package is sold without specifying the contents.
Bai Al Muajjal (Al)
- A credit sale. Tech: A financing technique adopted by
Islamic banks. It is a contract in which the seller allows
the buyer to pay the price of a commodity at a future date
in a lump sum or in installments. The price fixed for the
commodity in such a transaction can be the same as the spot
price or higher or lower than the spot price.
Bai Al Mudtar
- To purchase a thing when its owner is compelled under
stress of want to dispose of it.
Bai Al Mukhatarah
- An alternate term for bai al-gharar.
Bai Al Mulamasah
- A form of sales contract prevalent in the days of the
Prophet in which the buyer or the seller used to touch a
piece of cloth and this very act of touching finalized the
sales deal.
Bai Al Munabadhah
- A contract of sale prevalent in the days of the Prophet in
which the seller or the buyer would throw a piece of cloth
towards the other and this very act of throwing finalized
the sales deal.
Bai Al Munaqad (Al)
- An enforceable contract of sale. Tech: A contract to
exchange mal when one party proposes and the other accepts
it. It can be of four types: sahih, fasid, najidh or mawquf.
Bai Al Muqayadah
- Selling a commodity for another commodity. Barter
exchange.
Bai Al Murabahah
- Sale on profit. Tech: A contract of sale in which the
seller declares his cost and profit. This has been adopted
(with certain modifications) as a mode of financing by a
number of Islamic banks. As a financing technique, it
involves a request by the client to the bank to purchase a
certain item for him. The bank does that for a definite
profit over the cost which is settled in advance. Many
people have questioned the legality of this financing
technique because of its great similarity with riba.
Bai Al Musawamah
- Haggling, bargaining. Tech: Sale of goods at a price on
which the buyer and seller agree after haggling without
mentioning the cost of the seller.
Bai Al Muzabanah
- It is the exchange of fresh fruits for dry ones in a way
that the quantity of the dry fruit is actually measured and
fixed but the quantity of the fresh fruit to be given in
exchange is guessed while it is still on trees.
Bai Al Muzayadah
- A public sale through auction in which the deal is struck
with the highest bidder. Tech: A form of sale of merchandise
in which more than one seller is interested, and before the
deal is finalized some of the prospective customers start
bidding up the price without the intention of buying it.
Bai Al Nafidh (Al)
- A contract of sale which does not involve any right of the
third party. It is of two types: lazim (binding) and ghair
lazim (nonbinding). The lazim is a contract of sale which
has no options (to rescind) for any of the parties and the
ghair lazim is a contract of sale which may have at least
one option for any of the parties.
Bai Al Nasiah
- Credit sale with a fixed term to pay up the agreed price.
This method of bai bil nasiah usually resulted in riba
dealings in the pre-Islamic days and caused multiplication
of the original price if not paid back at the stipulated
time.
Bai Al Qati (Al)
- A contract of sale which is final and binding in all
respects.
Bai Al Sahih (Al)
- A contract of sale which is lawful in its substance and
description. The substance of an agreement refers to
proposal, acceptance and the article of sale (mabt).
Bai Al Taati
- A sales contract whereby the buyer picks up the goods and
the seller accepts the price without any explicit bargain.
It is also termed as bai al muatah.
Bai Al Taljiah
- A sales contract which is contrary to what it appears.
Tech: It is a simulated sale in which the seller pretends to
have sold his property when in fact he has not. For example,
a person may show that he has sold his property to his son
so that the state may not confiscate it. In recent times
this phenomenon was observed when in certain Muslim states
the feudal lords transferred their lands to their relatives
to avoid confiscation under land reforms regulations. It
also refers to delaying tactics of a defaulting debtor in
which he transfers his property or assets apparently to a
third party for fear of creditors claiming a right on those
assets against their debts. In fact the assets are not
transferred to anyone but it is posed as if they have been
transferred. The third party whose name is used is also made
to testify such a transfer though the claim is untrue.
Bai Al TawIiyah
- A contract of sale in which the seller agrees to sell a
product at his cost.
Bai Al Urban
- It is getting a thing against a nominal advance on the
condition that if the bargain is struck, the advance will be
adjusted and if the bargain is cancelled, the seller will
not return the advance. The advance being nominal, the buyer
had practically no liability. He will abide by the contract
if he finds it advantageous to him and will withdraw from it
otherwise. The modern day options contracts in the stock
exchange are covered by bai a/-urban.
Bai Al Wadiah
- A sales contract in which a seller informs the buyer his
actual cost and then gives a further discount on it. Thus it
is a sale at a loss.
Bai Ala Al Bai
- Sale over the sale of another person. Tech: Attempts of a
third person to sell his produce while the sale deal is in
the process of being concluded between two persons. The
intention of the third person is to upset the bargain. This
is done usually by quoting a lower rate or pointing out
defects in the goods being sold by the other seller.
Bai As Sikak
- Sale through documents. Tech: To buy certain goods without
taking possession except through transferring of papers of
entitlement. This was common in the early days of Islam and
is also prevalent in the modern times in futures markets.
Sale deals are concluded without physical possession of
goods from one party to the other, from second to third and
third to fourth, and so on. At each stage margins are added
without adding any utility to the products. They are all
covered under bai al-sikak. Similarly, selling only licenses
and permits issued by the government is also covered by
this.
Bai Bil Barnamaj
- Sale of whole bales of goods on the basis of their
description in an accompanying catalogue or list of contents
(barama) without actually unfolding the goods. This was in
vogue in Medina and other Islamic cities in the first
century A.H. and was treated as permissible by the fuqaha;
otherwise wholesale trade would have been impossible.
Bai Bil Raqm (Al)
- A sales contract prevalent in pre-Islamic Arabia in which
the merchandise was sold with reference to certain mark or
sign on it without the buyer knowing its exact quantity.
Bai Bil Takhir (Al)
- A contract of sale in which the payment has been deferred.
Bai Bil Wafa
- A sales agreement in which the buyer agrees to return the
goods at the same price once the agreement is concluded. It
is permissible if the clause for returning the goods is not
instituted before-hand. But if the said clause is the
essence of the contract the agreement becomes void.
Bai Darbah Al Ghais
- A sales contract in which the buyer agrees to buy for a
certain price whatever a diver will bring out from the
bottom of river or ocean.
Bai Habal Al Habala
- A type of business transaction prevalent in pre- Islamic
Arabia where the unborn child of a camel was sold while it
was still in the womb.
Baiatan Fi Baiah
- A contract of sale in which a seller offers to sell for a
certain price on cash but for a higher price on credit. It
also applies to a situation in which a person sells
merchandise for a certain price cash on the condition that
the buyer will sell it back to him at a higher price on
credit. Thus the first seller borrows a certain amount of
money to be paid back with an increment (riba) sometime
after. It is one of the contrivances to legitimize riba.
Baidirab Al Jamal
- Hiring of a camel to cover a she-camel.
Bait Al Mal
- Public treasury. Tech: An institution of early and
mediaeval Islam, it functioned as the central bank of the
state, state insurance company and controller of domestic
and foreign trade. The bait al-mal had two main categories:
bait al mal al-ammah, the ordinary revenues of the state and
bait al mal al-khassah, revenues accruing to the ruler from
crown domains (diya al-khassah). The khalifah or his wazir
would re-appropriate funds from one category of the bait
ai-mal to the other. The diwan bait al-mal kept the accounts
and was subject to audit by diwan al-zimam. The head of bait
al mal was known as sahib bait al-mal. The sahib had the
right to inspect diwan al-kharaj. Besides central bait
al-mal, there were buyut al-amwal at the provinces. The
khazin connected to these buyut al-amwal was responsible for
taxes paid in kind and stored at other financial centers.
Bait Al Mal Al Khassah
- Private treasury of the caliph to cover his personal,
family and executive expenditure. It seems that the bait
al-mal al-khassah did not appear until the caliphate of
Muawiyah had become more distinct under the Ottoman empire.
Bait Mal Al Muslimin
- Public treasury of the Muslims for collecting and
disbursing charity and waqf funds. Usually, it was
administered by the chief qadi of the state. The funds were
kept in the mosque under safe custody. The chief qadi was
responsible to administer these funds strictly in accordance
with the shariah.
Bakhs (Al)
- Too little, too low, very low (price). Tech: Quranic term
for exploitative decrement in value to others by traders in
contracts of sale. The people of Madyan during the life-time
of Prophet Shuaib used to exploit the strangers by colluding
with each other and declaring genuine money (coins) of the
strangers as false or spurious. The stranger would, thus,
sell those coins to them at a low price. Thus they would
deprive the ignorant stranger by collusion and deceit.
Bal (Al)
- Relating to the law of ushr, trees which fetch their
moisture from land (without any rainfall). Ushr is levied on
the produce of these trees. See ard at-bal.
Baqarah Al Muthirah (Al)
- Relating to the law of zakat, a cow or bull engaged in
tilling of land.
Baraka Islamic Investment Bank
Bahrain (AllB)
- Incorporated on 21 February 1984. Authorized capital, US$2
million. Paid-up capital, US$ ..50 million.
Barakah (Al)
- Blessings. Tech: God`s blessing or bounty in relation to
one:::s worldly pursuits. It refers to qualitative growth in
one`s possessions.
Barakah International Limited
(Al)
- al-Barakah International is a licensed deposit taker and
the first Islamic Bank in Britain within the framework of
the Banking Act of the country.
Barid (Al)
- Tech: A measure of distance equivalent to 4farasikh, 4,800
dhira or 22.176 kilometers. Also used for the beast of
burden which carries the mail and for the postman who used
to ride that animal.
Batil (Al)
- Futile, false, vain, invalid, void. Tech: A juristic
expression about something which is unlawful in its
substance as well as its description) (was] ). The Hanafite
jurists distinguish between batil and fasid, the latter
denoting something which is not inherently void but has
conditions or characteristics which has made it void. Other
jurists do not distinguish between batil and fasid.
Bazil (Al)
- Relating to the nisab for zakat, a camel that has reached
eight years old and entered into the ninth year.
Bidaah (Al)
- A form of quasi-agency in mediaeval trading. It involved a
merchant who, unable personally to attend to a business
affair, hands over some of his property to another party for
the latter to take care of it for him. Upon completion of
his task the outside party, without receiving any
commission, profit or compensation in any other form returns
the proceeds of the transaction to the merchant whose
bidding he has done. All parties to a partnership or
mudarabah contract are endowed with the right to exercise
this practice freely because it is one of the accompaniments
of trade. It is often practiced on reciprocal basis by the
merchants for each other.
BIMB
- Bank Islam Malaysia Berhard, established on 1 July 1983.
First Islamic Bank of Malaysia.
Bint Labun
- Relating to the nisab for zakat, a she camel in her third
year.
Bint Makhad
- Relating to the nisab for zakat, a she-camel in her second
year.
Birr (Al)
- Reverence, piety, kindness, charitable gift. Tech: To
adopt a generous attitude in interpersonal and
inter-institutional dealings. See also al-ihsan.
Borrowing Ratio
- Used in the model of interest-free banking based on
mudarabah, it is the ratio of the interest-free loans given
by the central bank to the member banks and interest-free
loans of the member banks to the public.
BRP
- Bankers Ratio of Profit-sharing. Percentage share of the
bank in the entrepreneur`s profits on finance taken on the
basis of mudarabah. It is an Islamic alternative to the
interest on credit obtained by entrepreneurs.
Buy Back
- A mode of financing adopted by banks in Pakistan.
According to this agreement the bank purchases moveable or
immovable property for the client with the agreement that
the client would buy it back from the bank at a higher
price, to be paid later by the client.
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