Glossary

Abd Allah: ‘servant of God’ in Arabic. Adl: is an Arabic word meaning justice. Ahl-al-kitab: is an Arabic term used for the People of the Book, e.g. Jews and Christians. Allah: an Arabic word for God. Other frequent names are Al-Rahman (the Merciful) and Al-Rahim (the Compassionate). Amanah: means fulfilling or upholding trusts, honesty. Amin: term used for trustee in Islam. Ariyah: a contract in which one party loans another the use of some item for an indefinite period of time. Avak ribbit: the dust of interest. A term used in Jewish literature. Bai or bay: sales in Arabic. Bai’ al-wafa’ or bai’ al-‘uhda: sale of property under the condition to buy back after a certain time. Bai bi-thamin ajil: alternate term used for deferred sale payment agree- ments mainly in East Asian countries. Bai’muajjal: is deferred-payment sale. Bai’salam: prepaid purchase. The term is mostly used in agriculture business. Batil: is an Arabic word meaning falsehood, null and void. Bayt al-Mal: state treasury department under Islamic governments in earlier times. Brahmin: Brahmin is a varna (class or caste) in Hinduism specializing as priests, teachers and protectors of sacred learning across generations. Bukhl: miserliness in Arabic. Canon: an authoritative decree by an ecumenical council.

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Carati: initial form of limited liability shares during the thirteenth century. Cardo: Christian ethics drawing upon ancient understanding or moral wisdom, especially the cardinal virtues, where cardinal comes from the Latin cardo. Caveat emptor: let the purchaser beware (i.e., he buys at his own risk). Cocchi-Compagni: amount donated to the Church as a gift and mentioned in a will. Collateralized debt obligation (CDO): is a type of structured asset-backed security (ABS), originally developed for the corporate debt markets. Commenda: a form of partnership used during the Middle Ages. Compagnia: term used for shipping companies or corporations during the medieval period. Contractus trinus: triple contact devised during medieval years to avoid usury charges from the Church. Damna et interesse: compensation paid for the non-fulfilment of a com- mercial contract. Damnum emergens: represents the actual reduction in the economic situ- ation of the person who has suffered damage and the loss of profits (lucrum cessans). Decalogue: The Ten Commandments. Dhimmas: is a historical term referring to non- living in an Islamic state with legal protection. The word literally means pro- tected person. Eudaimonia: Greek word used for happiness or welfare. Fard kefaya: is an Islamic term that denotes a religious duty commanded by Allah (God). Fardh: responsibility or duty. Fasid: this is an Islamic religious concept which means corruption, defec- tive or voidable. : Islamic jurisprudence. Fondaco: European trading houses or overseas colonies. Fuqaha: Islamic jurists, scholars, lawyers.

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Gemara: Aramaic for completion or tradition, a rabbinical commentary on the Mishnah, forming the second part of the Talmud. Geneivat da’at: Jewish term which means creating a false impression. Gharar: Arabic term for uncertainty, hazard, chance or risk. Gospel: the teaching or revelation of Jesus. Hadith: the authentic tradition or sayings of Prophet Muhammad. Hajj: Muslim pilgrimage to Mecca. Halacha (halakha, halakhah, halachah): Hebrew, ‘to go’; Jewish law and jurisprudence, based on the Talmud. Halal: activities or goods which are allowed under Muslim law. Hanafi school: it is one of the four religious Sunni Islamic schools of jurisprudence (fiqh). Haram: goods or activities which are prohibited in Islam. Hetter iska: this is a form of partnership agreement allowed under Jewish law. Hiba: means gift in Arabic. Hirs: this is an Arabic word for greed. Hisba: Arabic term for supervision or monitoring. Hiyal: Islamic terminology used to avoid straightforward observance of Islamic law in difficult situations while still obeying the letter of the law. Hobbesian: relating to or characteristic of the ideas of English philosopher Thomas Hobbes, known as the father of social contract theory. Ihsan: term used in the Qur’an for goodness, kindness, benevolence. Ijara: term used for leasing under Islamic finance. Ijara wa iqtina: Islamic finance term for hire purchase or lease purchase. Ijma: the collective judgments of learned Muslim scholars. Ijtihad: effort, physical or mental, expended in a particular activity, is an Islamic legal term referring to independent reasoning or the thorough exertion of a jurist’s mental faculty in finding a solution to a legal question. Ikhtiy’ar: free will or free consent.

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Iktinaz: hoarding of wealth in Arabic. Infaq: spending to meet social obligations. Insan-i-kamil: means the person who has reached perfection; literally, the complete person. Interesse: denotes the compensation made by a debtor to a creditor for damages caused. Iqra: recite in Arabic. Iqtisad: Arabic word for moderation. Iron flock: it was a partnership cum debt agreement among the Jewish community. Iska: an investment agreement or joint venture partnership under Jewish law. Israf: extravagance in Arabic. Istislah: public interest, or a method employed by Muslim jurists to solve problems that find no clear answer in sacred religious texts. Istisnaa: Islamic finance term for prepaid purchase in the manufacturing sector. Jubilee: a year of emancipation and restoration under ancient Hebrew law to be observed every 50 years. Kadis: term used for judges and judicial magistrates in Islamic countries. Khilafah (Caliph): representative of God on Earth. The term used in the Islamic world for a position similar to Pope in Christianity. Khums: an Islamic tax levied on income generated from mining. Kosher: food prepared according to the requirements of Jewish law. Kshatriyas: Hindu caste, which means warriors. La ilaha illa llah, Muhammadu rasulu llah: in its alternative translation, ‘There is no God but the God and Muhammad is his Prophet’. Lifnei ivver: term used for ill-suited advice under Jewish law. Lucrum cessans: the interest or damages awarded for loss of reasonably expected profits or for loss of use of property. Mafasid: Arabic term for social disutilities, corruption, rottenness. Masalih: social utilities.

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Maysir: Arabic word for gambling. Meezan: Arabic term for balance or scale. Messer Domineddio: literally means ‘Mr God-Our-Lord’. Setting aside ­certain money under the name of God during fourteenth-century Florence. Mishnah: The oral tradition of Jewish law. Mitzvot: Religious precepts under Jewish law. Mora: intentionally delaying the repayment of outstanding loans. Mortgage-backed security (MBS): this is a type of asset-backed secu- rity that is secured by mortgages. Mozaraah: Arabic term for joint cultivation. Mudaraba: Islamic profit and loss sharing partnership where investors usually act as sleeping partners. Mudarib: the term used for an entrepreneur in Islamic partnership. Mufawada: meaning an unlimited, unrestricted and equal partnership. Murabaha: is resale with a stated profit; for example, the bank purchases a certain asset and sells it to the client on the basis of a cost plus mark-up profit principle. Musharaka: joint venture profit and loss sharing in Islamic finance. Muslim: is one who professes the faith of Islam or is born into a Muslim family. Mutuum: a term used for usury or profit during the thirteenth century. Neshekh: term used for interest in Hebrew Bible, which means bite. New Testament: the second part of Christian Bible. Old Testament: first part of Christian Bible. PBUH: peace be upon him. Pentateuch: Greek word meaning five books: Genesis, Exodus, Leviticus, Numbers, Deuteronomy. Prestanza: this is a first permanent debt fund established in Italy in 1164. Qard hasan: Islamic interest-free loan without any specific repayment date.

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Qist: term used in the Qur’an for equity or fairness. Qiyas: analogy from established law. Rabbinical: Jewish law or rulings expounded by a qualified rabbi. Rentes: annuity-based contracts established in the early fifteenth century in Europe. : literally excess or increase, and covers both interest and usury. Riba al-buyu: it relates to usury involving trade. Riba al-fadl: it is an exchange of unequal qualities or quantities of the same commodity simultaneously. Riba al-nisa: involves the non-simultaneous exchange of equal qualities and quantities of the same commodity. Riba al-qard: it constitutes any excess amount paid for extension of a loan’s maturity date. Ribbit: in Judaism a construct of tarbit (increase), prohibited for the lender to charge and for the debtor to agree to make (i.e., interest payments). Sabr: patience in Arabic. Sadaqat: optional charity under Islamic law. Sadaq-e-jaria: term used for an endowment fund under Islamic law. Sahib al-mal or rabb al-mal: term used for investor in Islamic finance. Salam: tranquillity, inner peace or to remain whole. Salat: Muslim prayer. Saracen: term for an Arab or Muslim, especially at the time of the Crusades. Sawm: Muslim fasting. Sea loan: A type of commercial loan during the twelfth century where repayment was subject to the safe arrival of the ship. Shahada: literally means witness of faith. This is one of the Five Pillars of Islam. Shari’ah or shari’a: Islamic religious law derived from the Holy Qur’an and sunna. Sharikah (or sharika, shirkah): is a society or parnership.

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Sharikah al aamal: this partnership is created when partners jointly ­provide some specific services to their customers against services charges. Sharikah al aqd: contractual or commercial partnership. Sharikah al-inan: Islamic partnership agreement in which the partners may have equal equity but unequal rights to profit, unequal equity with equal rights to profit, or unequal equity and unequal rights to profit. Sharikah al milk: property or proprietary partnership. Sharikah al-wujah: here two or more entrepreneurs establish a credit partnership under joint liability. This arrangement is also known as partnership of the penniless (sharikah al mafalis). Shetar iska: deed to create a partnership under Jewish law. Shia: is a Shi’ite Muslim, whose members comprise about 10 per cent of the world population of Muslims. Shi’ite: comes from the religio-political party championing the claims of ‘Ali ibn abi Talib and his heirs to the rightful leadership of the community and to their status as Imams. Since the beginning of the sixteenth century, Shi’ism has been the official state religion of Iran and most of its followers live there, although there are communities spread across the Middle East. Shura: Arabic term for mutual consultation or joint decision-making process. Societas: a partnership agreement used during the medieval period in Europe where all partners are responsible for the profit and loss gener- ated through business. Sopracorpo: a type of financial instrument used by European business houses to raise additional capital during the fourteen and fifteen centuries. Special purpose vehicle (SPV): it is a subsidiary of a company established to meet specific, predefined objectives (i.e., protected even if the parent organization goes bankrupt). The actions of an SPV are usually very tightly controlled and they are only allowed to finance, buy and sell assets. Structured investment vehicle (SIV): a pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term debt.

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Sukuk: interest-free bonds issued under Islamic law. Sukuk al-ijara: Islamic bonds issued with the backing of leased assets. Sunna or : portion of Muslim laws based upon the sayings of the Prophet Muhammad. Sunni: are orthodox Muslims and constitute the majority form of Islam, those who follow the sunnah (thus being called the ahl al-sunnah), and who do not recognize the authority of the Shi’ite Imams. Sura (pl. surat): word used for chapter or portion of the Qur’an. Talmud: the body of Jewish civil and ceremonial law. Tarbit or marbit: meaning increase, it is a Jewish term for the recovery of interest by the creditor. Tawakkal: trust in one God. Tawarruq: this is an Islamic financial product which allows clients to raise money quickly and easily, in theory without breaking Muslim bans on interest. A customer buys an easily saleable asset from an Islamic bank at a marked-up price, to be paid at a later date, and quickly sells the asset to raise cash. Tawhid: means unification or unity of God in Arabic. Torah: (from the Hebrew, to teach), it is the Hebrew name of the Law of Moses or the Pentateuch, the first five books of the Old Testament. Tosefta: Aramaic for additional or supplementary, a companion volume to the Mishnah. Trinity: the three persons of the Christian Godhead: Father, Son and Holy Spirit. Tzedakah: is used for both charity and righteousness, meaning that a person cannot become righteous without charity. Tzniyut: term used for modesty in Judaism. : Islamic religious scholars. Umma: the whole community of Muslims bound together by ties of religion. Usher: a term used of an Islamic tax on agricultural income. Usura: it means enjoyment, denoted money paid for the use of money, and

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under canonical law meant the intention of the lender to obtain more in return from a loan than the principal amount due. Wadia: means safe custody or deposit. Wahhada: which means to unite, promise, unify or consolidate. Waqf: Islamic laws to establish a trust or charitable organization. YHVH: name of God in the Tanakh (canon of the Hebrew Bible). There are also titles in the Torah that ascribe to God names such as Elohim (god, or authority), El (mighty one), Shaddai (almighty), Adonai (master), Elyon (most high), Avinu (our father), etc. Zakat: charity under Islamic law. Derived from Arabic zakah, meaning pure, it is one of the Five Pillars of Islam. Zulm: injustice or the antonym of adl (justice). It is also used interchange- ably for cruelty or unjust acts of exploitation, oppression, and wrong- doing, whereby a person either deprives others of their rights or does not fulfil his obligations.

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