Chapter 42
Overview of Islamic Finance
Outline
What Is Forbidden (Ḥarām): Gharar (Uncertainty)
Example of a Ḥarām Transaction: Short Selling
What Is Forbidden (Ḥarām): Ribā (Interest)
Examples of Ḥarām transactions: Ribā al- Nasī’a and Ribā al-Faḍl
Ribā al-Nasī’a (Excess in Credit Transactions)
[r]iba in a Money-to-Money Exchange, Provided Exchange Is Delayed or Deferred and Additional Charge Is Incurred with such Deferment1
Ribā al-Faḍl (Unequal spot commodity trades)
Legal Devices (Ḥiyal) to Circumvent the Proscriptions on Gharar and Ribā
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