DISCOVER NEW PERSPECTIVES

Glossary of Financial Terms: F

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fadl

Excess, additional, surplus, as in Takaful.

Fadl-al-Allah

The bounties bestowed by the AlmightyAllah.

Falah

Success, to thrive. Technically, it implies success both in this world and in the Hereafter ( Akhirah).

Faqih

Jurist who gives rulings on various juristic issues in the light of the Qur’an and thesunnah.

Faraid

The section of Islamic law that deals with the distribution of the estate of a deceased persons among his/her heirs accordance with Allah’s decree in the Qur’an and theHadith.

Fasid

Voidable. A forbidden term in a contract, which consequently renders the contract invalid. A voidable or defective contract due to non-fulfillment of any condition required for valid contracts.

Fatwa

A religious decree. A ruling made by a competent Shari’ah scholar on a particular issue, where fiqh (Islamic jurisprudence) is unclear. It is an opinion, and is not legally binding. It may address either a specific problem of interest to a particular person or a matter of public concern.

Fatwah

See Fatwa.

Fayed

Surplus, as in Takaful.

Fictitious Assets

An asset having no tangible existence and realisable value but is shown to exist often with the intention to derive some financial benefit when otherwise it would not be possible. For example, an asset provided as security to obtain a loan is fictitious (does not exist) if there is no source of repayment. Financial crises are caused by creating more and debt against fictitious assets saddling individuals, businesses and countries with debts that they are unable to repay. See Asset.

Fiqh

Refers to the whole corpus of Islamic jurisprudence. In contrast to conventional law, fiqh covers all aspects of life – religious, political, social, commercial, and economic. Fiqh is based primarily on interpretations of the Qur’an and the Sunnah and secondary sources that are supported by the Qur’an and the SunnahFiqh may also be understood as the jurists’ understanding of the Shari’ah. There are four major schools of Islamic thought, the Hanafi, Shafi’i, Hanbali and Maliki.

Fiqh al-mua'malat

Islamic commercial jurisprudence, jurisprudence of financial transactions or the rules of transacting in a  Shari’ah-compliant manner.

Fiqih

See Faqih.

Fitrah

Law of nature.