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Glossary of Financial Terms - H
 
This glossary is not limited to Islamic terms and
contains Arabic and English terms that are also referred to
in the study of Islamic economics, banking and insurance.
 
 
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Hadith
A record of the sayings and living example of the Prophet Muhammad (pbuh), referred to as the Sunnah.
Hadiah Donation.
Hajj Pilgrimage to Makkah combined with other holy places. Hajj, the fifth pillar of Islam, is a duty on every Muslim who is financially and physically able to carry it out, at least once in his/her lifetime.
Halal
That which is permissible by the Shari'ah, valid earnings.  The concept of halal has spiritual overtones.  Muslims believe that all things have been provided by God, and the benefits derived from them, are essentially for the use of mankind, and so are permissible except what is expressly prohibited in The Qur’an or the Sunnah. It also refers to activities, contracts and transactions as well as earnings. When guidance is not clearly given in The Qur’an there are several other sources of law, for example, guidance can be sought from Fiqh, which means ‘understanding’ and is the science of jurisprudence: the science of human intelligence, debate and discussion. The concept of halal is one of the distinctive features of Islamic economics vis-a-vis Western economics where no such concept exists.  In Western economics, all activities are judged on the touchstone of economic utility.  In Islamic economics, other factors, mostly ethical and moral are also involved.  An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shari'ah.
Hamish Jiddiyah
Token money, down payment by a party intending to purchase certain goods who wishes to confirm the intention to do so by paying an amount to the seller as token money or down payment to secure the goods. Also, see Arbun.
Hanafi "One of the four well-known schools of thought in Islamic jurisprudence or religious law engaged in the interpretation of the Qur’an and Sunnah. Founded by one of the classical jurists, Imam Abu Hanifa (d. 765 AD), followers of this school are known as Hanafi's. Others are Hanbalis, Malikis and Shafi'isZahiri is another known school developed by Daud ibn Khalaf (d. 883 AD). The Jafri Shia Islam school in Islamic jurisprudence was developed by Imam Ja'far al-Sadiq (d. 765) at about the same time its Sunni legal fiqh counterparts were being codified. It was distinguished from Sunni law "on matters regarding inheritance, religious taxes, commerce, and personal status."
Hanafi'i

See Hanafis

Hanbali

"One of the four well-known schools of thought in Islamic jurisprudence or religious law engaged in the interpretation of the Qur’an and Sunnah. Founded by one of the classical jurists, Imam Ahmad Hanbal (d. 855 AD), follower of this school is known as Hanbalis. Others are Hanafis, Malakis and Shafi'is. The Hanbali is considered the hardest in terms of social and personal rules. ahiri is another known school developed by Daud ibn Khalaf (d. 883 AD). The Jafri Shia Islam school in Islamic jurisprudence was developed by Imam Ja'far al-Sadiq (d. 765) at about the same time its Sunni legal fiqh counterparts were being codified. It was distinguished from Sunni law "on matters regarding inheritance, religious taxes, commerce, and personal status."

Haram
Unlawful in Islam. Activities which are explicitly prohibited by The Qur'an or the Sunnah. The prohibitions also includes professions, contracts and transactions as well as earnings.  When guidance is not clearly given in he Qur’an there are several other sources of law, for example, guidance can be sought from Fiqh, which means ‘understanding’ and is the science of jurisprudence: the science of human intelligence, debate and discussion. The concept of haram is one of the distinctive features of Islamic economics vis-a-vis Western economics where no such concept exists.  In Western economics, all activities are judged on the touchstone of economic utility.  In Islamic economics, other factors, mostly ethical and moral are also involved.  An activity may be economically sound but may not be allowed in the Islamic society if it is not permitted by the Shari'ah. Opp. Halal.
Hawala See Hawalah
Hawalah
Literally, it means transfer; legally, it is an agreement by which a debtor is freed from a debt by another becoming responsible for a debt or the transfer of a claim of a debt by shifting the liability for payment from one person to another, such as a contract for assignment of debt. Thus the responsibility for payment shifts to another party. It also refers to the document by which the transfer or assignment takes place, such as a bill of exchange, promissory note, cheque or draft.The mechanism of Hawalah is used for settling accounts by book transfers without the need for physical transfer of cash.
Hesab al takaful Takaful Ta'auwuni Account
Hibah
A gift. Tech: transfer of a determinate property (mal) without any material consideration. It may be something given on a voluntarily basis by a debtor to a creditor as a token of appreciation at the time of returning an interest-free loan. Islamic banks can use their discretion to make a payment by way of ‘gift’ to their customers on non-investment account balances and to attract more deposits for the bank. While such a ‘gift’ appears similar to interest, and may, in effect, have the same outcome, Hibah is a voluntary payment made (or not made) at the bank's own discretion, and is not guaranteed.
Hikmah Rationale, Wisdom behind any course of action or injunction.
Hila
A forbidden structure used for the purpose of attaining a desired legal outcome, something done to deceive others. Using permissible or a combination of permissible means to reach forbidden ends. Tricks or ruses employed in structuring transactions to give the appearance that they are in compliance with the Shari’ah when the real intention is to circumvent the basic prohibitions. pl. Hiyal.
Hilah See Hila.
Hisbah A term used by the classical Muslim jurists to describe the function carried out by the state or appropriate Islamic authority to regulate the market place. It includes whatever steps may be needed in order to maintain a fair and orderly market place.
Hiyal See Hila.
Hukm See Hukum.
Hukum
 
In Fiqh, the Shari'ah ruling associated with any action; rules, provisions and laws includes Allah's command's/norms/values for individual believer.
Husah Lit: pebbles. A type of sale that was practiced by the Arabs in the Jahiliyyah in which the sale was determined by casting of pebbles. This practice was prohibited by Prophet Muhammad (pbuh) because of the uncertainty ( gharar) which characterised the contract which governed it.

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