Glossaire de la finance islamique

Usurious interest, strictly prohibited in Islamic finance. Any fixed, guaranteed gain on a money loan is riba.

Excessive uncertainty or ambiguity in a contract, which invalidates a transaction under Sharia.

Gambling and pure speculation — prohibited gain based only on chance.

Permissible under Islamic law. A halal investment passes sector and financial AAOIFI screens.

Forbidden under Islamic law (alcohol, gambling, riba, weapons, etc.).

Islamic equivalent of a bond: asset-backed certificates without interest (return = share of profit/rent).

Obligatory alms: 2.5% of zakatable wealth above the Nisab, once per lunar year.

Minimum wealth threshold making Zakat due (87.48 g gold or 612.36 g silver).

Donating the non-compliant portion of income (e.g. interest) to charity to purify an otherwise-halal investment.

Cost-plus sale: the bank buys an asset then resells it at a transparent agreed margin.

Islamic leasing: renting an asset with purchase option, compliant as based on real rent.

Profit-sharing partnership: capital provider + manager; losses borne by capital, profits shared.

Islamic law governing finance (prohibition of riba, gharar, maysir; sector screens).

Trading account without overnight interest (swap), required for Sharia-compliant trading.

Islamic finance standards body. Its ratios (debt<33%, non-halal revenue<5%) are the screening reference.