Refers to placement of goods or deposits with another person, who is not the owner, for safe-keeping. Wadiah Yad Dhamanah is a guaranteed trust, the depository becomes the guarantor and therefore, guarantees repayment of the whole amount or any part thereof, outstanding in the account of depositor, when demanded. The depositors are not entitled to any share of the profits but the depository may provide returns to the depositors as a token of appreciation.

Refers to an arrangement made between two parties i.e. the fund provider and the entrepreneur (who provides expertise) to enable the entrepreneur to carry out business projects. The profit-sharing ratio needs to be pre-determined during the agreement. In the case of losses, the losses are to be borne by the provider of the funds*.
* Unless the loss arises out of willful negligence, misappropriation by the entrepreneur, etc.

Refers to a partnership or joint venture for a specific business with a profit motive, whereby the distribution of profits will be apportioned according to the agreed ratio. In the event of losses, both parties will share the losses on the basis of their equity participation.

Refers to the sale of goods at a price which includes a profit margin in addition to the cost. Such a contract is valid on condition that the price, other costs and the profit margin of the seller are stated at the time of the agreement on the sale.

Refers to the sale of goods on a deferred payment basis at a price which includes a profit margin agreed to by both parties.

Refers to debt financing, i.e. the provision of financial resources required for production, commerce and services by way of sale/purchase of trade documents and papers. It is a short-term facility with a maturity of not more than a year. Only documents evidencing real debts arising from bona fide commercial transactions can be traded.

A contract, which involves the sale and buy back transaction of assets by a seller. A seller will sell the asset to a buyer on a cash basis. The seller will later buy back the same asset on a deferred payment basis where the price is higher than the cash price. It can also be applied when a seller sells an asset to a buyer on a deferred basis. A seller will later buy back the same asset on a cash basis at a price, which is lower than the deferred price.

Refers to an arrangement under which the lessor leases an equipment, building or other facility to a client at an agreed rental against a fixed charge, as agreed by both parties.

Refers to two contracts undertaken separately and consequentially as follows:
(i) Ijarah contract (leasing/renting) and
(ii) Bai' contract (purchase).

Under the first contract, the hirer leases the goods from the owner at an agreed rental over a specified period. Upon expiry of the leasing period, the hirer enters into a second contract to purchase the goods from the owner at an agreed price. This concept is applicable for financing of consumer goods and durable.

Refers to an interest-free loan. The borrower is only required to repay the principal amount borrowed, but he may pay an additional amount at his absolute discretion, as a token of appreciation.

Refers to an agreement whereby payment is made immediately while the goods are delivered at a later date. It is equivalent to an advance payment.

Refers to an agreement between the client and the supplier, whereby the supplier agrees to supply a particular product on an on-going basis, for example monthly, at an agreed price and on the basis of an agreed mode of payment.

Refers to the guarantee provided by a person to the owner of a good, who had placed or deposited his good with a third party, whereby any subsequent claim by the owner for his good must be met by the guarantor and the third party.

Refers to an arrangement whereby a valuable asset is placed as a collateral for a debt. The collateral may be disposed in the event of default.

Refers to a transfer of funds/debt from the depositor's/debtor's account to the
receiver's/creditor's account where a commission may be charged for such service.

Refers to a contract of sales and purchase of assets by specification or order where the price is paid in advance but the assets are manufactured or produced and delivered at a later date.