Glossary

A B D F G H I J K M N Q R S T U W Z
There are 8 names in this directory beginning with the letter I.
Ibaha
The rule that every economic transaction is permissible, unless expressly forbidden by the Shariah.

Ijara
An instalment leasing agreement.

Ijara with Diminishing Musharaka
The principle of ijara with diminishing musharaka can be used for home-buying services. It is essentially a co-ownership agreement. This means that both parties own the property together, with separate stakes. So, each repayment – which is part rent and part capital (and part charges) – is used to purchase the bank’s shares in the property over time. As the buyer’s stake grows, the bank’s stake shrinks. This reduces the amount of rent the buyer has to pay for use of the bank’s share of the property.

Inan
A 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. The share in profit is usually subject to the parties' agreement and not necessarily proportionate to their contributions.

Iqtisad Islami
An Islamic approach to economic affairs.

Israf
Wasteful expenditure.

Istijar
Hiring or renting.

Istisna'a
A contract of exchange with deferred delivery, applied to specified made-to-order items.