Refers to a safe keeping contract in which a party entrusted his property to another party for safe keeping and to be returned upon request.

Is a form of Wadi’ah contract. Under the Wadi’ah Yad Dhamanah contract, the custodian acts as the safekeeper or trustee for the fund deposited by the safekeeping depositor. However, as the safekeeping depositor normally allows the custodian to utilise his deposited money, the custodian is obliged to guarantee the deposit. As a reward and token of appreciation for the utilisation of the deposit, the custodian, at its discretion, may give hibah to the customer.

Refers to a contract between capital provider (rabbul mal) and an entrepreneur (mudarib) under which the capital provider provides capital to be managed by the entrepreneur based on any profit generated from the capital is shared between the capital provider and the entrepreneur according to mutually agreed profit sharing ratio (PSR) whilst financial losses are borne by the capital provider provided that such losses are not due to the entrepreneur’s misconduct (ta’adi), negligence (taqsir) or breach of specified terms (mukhafalah al-shurut).

Refers to a partnership between two or more parties which may take effect through contractual relationship (‘aqd) or by operation of Islamic law, whereby all contracting parties will share the profit and bear loss from partnership.

Is a type of Musharakah (partnership) contract where the Musharakah may be entered into by two or more parties on a particular asset or venture which allows one of the partners to gradually acquire the shareholding of the other partner through an agreed redemption method during the tenure of the contract.

Refers to a sale and purchase of an asset where the acquisition cost and the mark-up are disclosed to the purchaser.

Refers to a sale contract without the disclosure of the asset cost price and profit margin to the buyer.

Refers to a sale contract based on deferred payment at certain price.

Refers to a contract of debt trading created from Shariah-compliant business activities.

Sale contract followed by repurchase by the seller at a different price.

Refers to a contract of transfer of ownership of usufruct or service in exchange for a specified consideration.

Involves two types of contracts, namely hire/lease contract (Ijarah), followed by sale contract (al-Bai’). Under the first contract, the owner will lease the asset to the hirer for a specified period. 

Upon expiry of the lease period, the hirer has the option to purchase the asset from the owner at an agreed price. If the hirer opts to purchase the asset, the owner and the hirer will conclude a sale contract and the ownership of the asset will be transferred from the owner to the hirer.

Refers to a lease contract which ends with acquisition of ownership of the asset by the lessee, either through sale contract or by way of gift.

Refers to a lease contract that transfers ownership of a permitted usufruct at a future agreed date, as the asset is not yet available or owned by the lessor at the time of contract. In this contract, the lessor undertakes to deliver the usufruct of the asset based on agreed specifications.

Refers to a contract of lending a fungible asset (a comparable or interchangeable assets that are valued or treated as the same class of assets like cash) to a borrower who is bound to return an equivalent replacement.

Refers to a contract in which advance payment is made for an asset to be delivered at a future date.

Refers to an agreement between the client and the supplier, whereby the supplier agrees to supply a particular product on an on-going basis, for example monthly, at an agreed price and on the basis of an agreed mode of payment.

Refers to conjoining the guarantor’s liability to the guaranteed party’s liability such that the obligation of the guaranteed party is established as a joint liability of the guarantor and the guaranteed party.

Refers to an arrangement requiring a particular asset to be made as security for a financing or loan so that in the event of default by the financing receiver or debtor, the financing or loan may be satisfied out of the value of the security or the financed asset.

Refers to a contract in which a party (principal or muwakkil) authorises another party as his agent (wakil) to perform a particular task, in matters that may be delegated, either voluntarily or with imposition of fee.

Refers to an investment agency contract where the principal appoints the agent to undertake investment activities on behalf of him for a fee.

Refers to an assignmentor transfer of debt from the liability of the original debtor to the liability of a third person so that the original debtor becomes free of liability.

Refers to the buying and selling of foreign currencies.

Refers to commissions or fees charged for services.

Refers to an agreement to sell to a purchaser a non-existent asset that is to be constructed, built or manufactured according to the agreed specifications and delivered on a specified future date at a predetermined price of the Istisna’ asset.

Refers to an arrangement that involves sale of an asset to the purchaser on a deferred basis and subsequent sale of the asset to a third party on a cash basis to obtain cash or vice versa.

Refers to a transfer of ownership of an asset to a person without any consideration in return.

Refers to rebate or waiver of partial or total claim against certain right or debt.

Refers to an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the takaful participants or their beneficiaries on the occurrence of pre-agreed events.

A promise or undertaking, refers to an expression of commitment given by one party to another to perform certain action(s) in the future.

Refers to the amount that may be compensated to the Islamic financial institutions based on the actual loss incurred due to default.

Refers to the penalty charged on the defaulters over and above the Ta’widh (compensation).