Wadiah (Bailment)

Literally: from wada'a: to leave something; awda 'ahu malan means to leave property with someone so that it will be with him.

Technically: property left with a person for safekeeping. The Hanbalis added the stipulation "without compensation". Some said: property left with a person as a trust.

↑ Back to Top


Wakalah (Agency)

Literally: to depend upon someone else in one's affairs; to guard, take care of guarantee.

Technically: Hanafi; to have another stand in for oneself, either due to one's own inability or as a matter of convenience, to carry out designated lawful transactions. Maliki: Someone given right, not by a ruler and not in an act of ritual worship, to represent another, without death being a condition for its effectiveness. Shafi'i: a person's delegation of another to do, during his lifetime, whatever the principal has right to do so, as long as the act is amenable to being done by proxy. Hanbali: when a person who has permission to act authorizes another such person to act on his behalf in acts amenable to being done by proxy, whether they relate to the rights of Allah or the rights of human beings. Jurists unanimously agree that authorization of an agent to act on one's behalf is lawful.

↑ Back to Top


Waqf (Endowment)

Literally: to retain or hold back.

Technically: to make a property the inalienable property of its owner while making its yield and usufruct a charitable donation to specified beneficiaries. It has been declared lawful by the Qur'an, the Sunnah and ijma' (consencus).

↑ Back to Top


Zakat (Compulsory Alms)

Literally: the Arabic word means increase and enhancement / augmentation.

Technically: it is a particular amount of property that must be paid to a particular recipient of zakat is payable to him; amount of zakat payable yearly are fulfilled in seeking Allah's reward.

↑ Back to Top


Source: ISRA Compendium for Islamic Financial Terms Arabic - English, 1st edition, Kuala Lumpur: International Shariah Research Academy for Islamic Finance (ISRA), 2010