Maisīr ميسير or Qimār قمار
Gambling. Any activity that involves betting, involving money or any items on the outcome of an unpredictable event. The bet is forfeited if the outcome is not as predicted by the bettor and the person against whom the bet is made takes the bet. This activity is clearly prohibited by the Sharīah.
Anything of natural desire by humankind, and can be stored for times of necessity; has specific or general use and is permissible by Sharīah for the purpose of extracting its benefit.
Medical and Health Takaful
A contract that provides specified medical treatment benefits such as the cost of hospitalisation, surgical and physician consultation fees against risks of a person being diagnosed with certain illnesses or having injury arising from an accident.
A statistical table showing the death rate at each age, usually expressed as the number of deaths per thousand.
An agreement between a capital provider (rabbul māl) who provides 100% capital for a business and entrepreneur (mudhārib) who manages the business applying his expertise. Under this contract, the resulting profit is to be shared between them according to a pre-agreed ratio, while any loss is to be borne solely by the provider of capital.
Debt settlement by contra transaction or setting off.
An agricultural contract whereby the owner of agricultural land shares its produces with another person in return for his services in irrigating the garden.
A general kind of sale in which price of the commodity to be traded is bargained between seller and the purchaser without any reference to the acquisition cost incurred by the seller.
Mushārakah Mutanāqisah مشاركة متناقصة
Diminishing mushārakah; allows equity participation and sharing of profits in a pre-agreed ratio, and sharing of losses on a pro-rata basis. This provides a method through which the bank keeps on reducing its equity in the asset, ultimately transferring ownership of the asset to the customer/ partner.
A contract between two or more parties to contribute capital in various proportions to a partnership. Profits generated by the partnership are shared in accordance with the terms of mushārakah contract whilst losses are shared in proportion to the respective contributors’ shares of the capital.