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Gharar meaning - What is Gharar in Islamic Banking?











Rather, it is one involving an effortless gain similar to a gambling scheme or activity.



Riyad: Maktaba al-Rushd Nāshirūn, 2004.



Gharar uncertainty defies the very purpose of Islamic finance.






Commentary :: Gharar: The Origins of the Prohibition






The Prophet peace be upon him forbade all transactions that have a high level of uncertainty Gharar.





For instance, a forward lease has some element of uncertainties regarding the future existence of its usufruct.


Description: The Arabic word Gharar is a fairly broad concept that literally means deceit, risk, fraud, uncertainty or hazard that might lead to destruction or loss.

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Gharar is a significant concept in Islamic and is used to measure the legitimacy of a risky investment pertaining togambling, the selling of goods or assets of uncertain quality, or to any contract that is not drawn out in clear terms.
This uncertainty where the buyer nor the seller knows what the clear-cut sale will be is gharar.
Explained in simple terms so anyone can understand the concept of Gharar in Islam.

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