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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.


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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.
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This uncertainty where the buyer nor the seller knows what the clear-cut sale will be is gharar.
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Explained in simple terms so anyone can understand the concept of Gharar in Islam.

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