IFN RSS feeds twitter
 
Subscriber Login
User ID:
Password:
Not a subscriber? Request for free trial
 
IFN Search

 
IFN Company Directory

 
Build your own
IFN Research Report
 
 
Latest Supplement
Supplements
 
 
Currency Converter
 
Books
 
Upcoming Training
 
Upcoming Conferences
 
Partners
 
Glossary  
Definition of Major Islamic Finance Instruments
All  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z
 

Search term:


Bai Ajil bi Ajil = delayed-for-immediate sale

The sale price is paid immediately and delivery of the sale item is delayed. Synonymous with Bai al Salam.

Bai al Arboon = deposit-secured sale

A sale agreement in which a security deposit is provided in advance as part payment towards the price of the commodity. The deposit is forfeited if the buyer does not meet his obligation.

Bai al Inah = sale and buy-back

The sale and buy-back of an asset for a higher price than that for which the seller originally sold it. A seller immediately buys back the asset he has sold on a deferred payment basis at a price higher than the original price. This can be seen as a loan in the form of a sale.

Bai al kali’ bi al kali’ = sale of debt for a debt

Prohibited sale, the most well known of which is where a lender extends his debtor’s debt repayment period in return for an increase on the principal, that is, interest.

Bai al Salam = future delivery

A contract whereby the payment is made in cash at the point of contract but the delivery of asset purchased will be deferred to a predetermined date.

Bai Bithaman Ajil = deferred payment sale
Alternative spelling = Bai Muajjal

The sale of goods on a deferred payment basis. Equipment or goods requested by the client are bought by the bank, which subsequently sells the goods to the client for an agreed price, including a mark-up (profit) for the bank. The client may pay by installments within a pre-agreed period, or in a lump sum. This sale works in a similar way to a Murabahah contract, but with deferred payment.

Bai Dayn = debt financing

The provision of financial resources required for production, commerce and services through the sale and purchase of trade documents and papers. Bai Dayn is a short-term facility with a year or less maturity. Only documents evidencing debts arising from bona fide commercial transactions can be traded.

Bai Istijrar = supply sale

When a supplier agrees to deliver to a client on a regular basis at an agreed price and mode of payment.

Bai Muajjal = deferred payment sale
Alternative spelling = Bai Bithaman Ajil

The sale of goods on a deferred payment basis. Equipment or goods requested by the client are bought by the bank, which subsequently sells the goods to the client for an agreed price, including a mark-up (profit) for the bank. The client may pay by installments within a pre-agreed period, or in a lump sum. This sale works in a similar way to a Murabahah contract, but with deferred payment.

Bai Muzayadah = open bidding trading

The principle governing open auctions, where the asset is awarded to the highest bidder.

Bai Wafa = sale and buy-back

The sale and buy-back of an asset within a set time, when the original buyer agrees to the original seller's repurchase.

Baitul Mal = treasury

Batil = null and void

 

 
Latest Issue
Wednesday 22nd October 2014
Volume 11 Issue 42
   
Cover Story
IFN Rapid
News Briefs
Asset Management
Takaful
Ratings
Moves
IFN Reports
  Building on Sri Lanka’s growth story: Amana Candor Shariah Income Fund
  IFN Global Trendswatch
  IFN Weekly Poll: If the Islamic asset management industry were to have one dedicated ‘center’, which would be most suited?
  IFN Dealogic roundup
  Oil uncertainty: a launchpad for Islamic finance?
  Unpublished private placement ratings — too early to tell
  On a Wing and a Prayer: Breaking down barriers
  New Islamic bank for Tunisia
  Islamic finance landing opportunities in aviation world
  Qatar, Saudi Arabia and UAE spearhead growth opportunities in the GCC
  Solid micro and macroeconomic environment pushes Al Samaha Islamic Fund to the top
  Sovereign Sukuk: Back to Asia
  Meezan Bank concludes HSBC Pakistan acquisition, targets high net worth customer base
  Positive third quarter results for Saudi banks
IFN Country Correspondents
  Completion of repayment of Qatari loans by Egypt in November
  Slow growth in Nigeria’s Islamic finance industry
  Tunisia looking to debut Sukuk by the end of 2014
IFN Sector Correspondent
  Islamic PE and VC: Under-represented but improving
IFN Country Analysis
  Growing market: Islamic finance in Bangladesh
IFN Sector Analysis
  Reviving the Islamic securitization market
Features
  Singapore as a hub for Islamic wealth management
According to an annual survey conducted by the Monetary Authority of Singapore (MAS), the city-state’s central bank and regulatory authority...
  The growth of Islamic derivatives
The reputation of financial derivatives suffered greatly during the financial crisis...
  GCC’s low insurance penetration gives Malaysia a head start in Islamic insurance
Although the Gulf region is the world’s largest market for Takaful, the sector has yet to truly flourish in any of the six GCC states...
Case Study
South Africa’s maiden Sukuk: A well-received Islamic paper

Go top