Bay’ Middle East have prohibited both these contracts.

Bay’ al-Dayn

Bay’ al-Dayn is still being debated by contemporary Shariah scholars. In the Middle East, most scholars have prohibited bay’ al-Dayn on the basis of an consensus among the scholars although there is no evidence in support. These scholars also rely on a Hadith where it is reported that the Prophet has prohibited bay’ al-kali’ bi-al-kali’. Others argue that if the exchange of $100 today for $110 payable in cash one month later is considered as Riba, it is inconceivable that Shariah would allow an exchange of $100 today for $110 worth of receivables that will accrue one month later. The prohibition of bay’ al-Dayn is a logical consequence of the prohibition of Riba.

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Scholars in Malaysia have adopted the minority view that the concept of bay ‘al-‘ina and bay’ al-Dayn were permissible and issued bay’ bi-thaman ‘ajil bonds. Scholars in the Middle East have prohibited both these contracts.

Bai Salam

Bai Salam means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver or currencies. Apart from this, Bai salaam covers almost everything that is capable of being definitely described as to quantity, quality, and workmanship.

Hibah (Gift)

This is a token given voluntarily by a creditor to a debtor in return for a loan. Hibah usually arises in practice when Islamic banks involuntarily pay their customers interest on savings account balances.


Ijarah means lease, rent or wage. Generally, the Ijarah concept means selling benefit or use or service for a fixed price or wage. Under this concept, the bank makes available to the customer the use of service of assets/equipment’s such as plant, offices or motor vehicles for a fixed period and price.