Glossary

A B D F G H I J K M N Q R S T U W Z
There are 6 names in this directory beginning with the letter S.
Sadaqah
Charitable giving. An act of charity.

Salaf
A loan which offers no profit for the creditor and is slightly different from qard in that an amount given as salaf cannot be called back before it is due; it includes loans for specified periods, i.e. short, intermediate and long-term loans.

Sarf
Currency exchange.

Sharik
The principle of Shariah that risk should be shared among all participants in a transaction and should be linked to returns. The widely held view is that one cannot profit from a venture in which one does not share the risk. A sharik may also refer to a partner, someone who shares risk, for example a partner in a Musharaka or a shareholder in a company.

Shirkah
A partnership between two or more individuals. The parties involved combine a portion of their capital or labour in order to share in the profits and losses of the business.

Sukuk
Bonds structured in such a way as to generate returns to investors without infringing Islamic law. Sukuk represents undivided shares in the ownership of tangible assets relating to particular projects or special investment activity. A sukuk investor has a common share in the ownership of the assets linked to the investment although this does not represent a debt owed to the issuer of the bond.