What does riba mean?
Riba is a term used in Islamic finance and architecture to describe interest or usury. It is considered haram, or forbidden, in Islamic law. The concept of riba is based on the idea that money should not be used to generate more money, but rather to facilitate trade and commerce. In Islamic finance, riba is avoided through the use of profit-sharing arrangements and other innovative financial instruments. Riba is an important concept in Islamic economics and has significant implications for the development of Muslim-majority countries. Understanding riba is essential for anyone interested in Islamic finance, economics, or architecture.
nounRiba is a term used in Islamic finance and architecture to describe interest or usury. It is considered haram, or forbidden, in Islamic law.
- Interest or usury in Islamic finance and architecture
"The Islamic bank refused to lend money at riba, instead offering a profit-sharing arrangement."
"The Islamic scholar argued that riba was a major obstacle to economic development in Muslim countries."
"The architect designed a mosque that avoided riba in its financing and construction."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of riba
The term riba is derived from the Arabic word for 'increase' or 'growth'. It has been used in Islamic finance and architecture for centuries to describe interest or usury. The concept of riba is based on the Quranic prohibition on riba, which is considered one of the key principles of Islamic economics.
How riba is actually used
Riba is often used in contrast to sukuk, a type of Islamic bond that is considered permissible.