Glossary

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There are 4 names in this directory beginning with the letter T.
Takaful
The philosophical foundation of takaful can be found in Islamic principles such as co-operation, responsibility and mutual help. Due to such principles, takaful is defined as a co-operative or mutual insurance, because members of a takaful company join in contributing a certain sum of money as their subscription to a common insurance pool. Losses are divided and liabilities spread.

Tawarruq
Also known as a reverse murabaha. An Islamic finance technique used to provide working capital in compliance with Shariah. In a Tawarruq transaction, a buyer (borrower) buys an asset (typically a freely tradeable commodity such as platinum or copper) on credit from a lender on a deferred payment basis and then immediately resells the asset on the spot market for cash to a third party. Following this transaction, the: • Borrower has the required funds. • Borrower has an obligation to pay to the lender the original purchase price of the asset (usually the cost of the asset plus a profit element). • Lender has made a profit on the transaction.

Thaman
The price of an asset, service or commodity.

Tijarah
Buying something with the intention of selling it for profit, whether the profit is realised or not.