Glossary of main Islamic financial terms

Principal terms of Islamic finance are: 1. Ijara , which is a leasing deal; 2. Istisna , which is a pre-production arrangement by which a bank provides raw materials to a firm that repays the funds with returns from the project; 3. Mahafez , which are cooperative communities; 4. Mudaraba , which is a trustee financing set-up; 5. Mudarib , which signifies a head manager; 6. Murabaha , which is trade finance with deferred payment and a profit made through a mark-up; 7. Mozara`a , which is an agricultural deal between two farmers regarding tillage and profit sharing; 8. Musaqat , which is an agricultural seal regarding irrigation services; 9. Musharaka , which is equity financing arrangement; 10. Riba, which is interest; 11. Shari`a committees, which are approval-granting bodies of knowledgeable individuals; 12. Takaful, which is solidarity or insurance; 13. Tawaraq, which is a sales set-up in which credit is used and the good is sold with a discount for cash, and 14. Zaka , which is the