Gharar
English: uncertainty
Definition: One of three fundamental prohibitions in Islamic finance (the other two being riba and maysir). Gharar is a sophisticated concept that covers certain types of haram uncertainty in a contract. It is an exchange in which one or more parties stand to be deceived through ignorance of an essential element of the exchange. Gambling is a form of gharar because the gambler is ignorant of the result of the gamble. The prohibition on gharar is often used as the grounds for criticism of conventional financial practices such as short selling, speculation and derivatives.
« Back to Glossary IndexNews related to Gharar (404)
Cryptocurrency — Shariah compliant or Gharar?
Tuesday, 26 Apr 2022 | Volume19.Issue17
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Wednesday, 19 Jan 2022 | Volume19.Issue04
Correspondent ReportsControls on Gharar in financial transactions
Tuesday, 22 May 2018 | Volume15.Issue21
Shariah StandardsQuantification of Market Gharar Metric
Wednesday, 10 Mar 2010 | Volume7.Issue10
FeaturesCombating corruption, bribery and upholding integrity in Islamic banking in Somalia
Friday, 12 Apr 2024 | Volume21.Issue16
Correspondent ReportsDoes an elevated foreign currency risk affect the Shariah compatibility of investment in Egypt?
Friday, 08 Mar 2024 | Volume21.Issue11
Correspondent ReportsShariah compliant crowdfunding in the Iranian capital market
Wednesday, 06 Mar 2024 | Volume21.Issue11
Correspondent ReportsDigital transformation of value-based intermediation, a way forward for the Islamic finance industry
Tuesday, 30 Jan 2024 | Volume21.Issue05
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Tuesday, 19 Dec 2023 | IFN Annual Guide 2024
FeaturesEnforceability issues in Islamic constructs today
Tuesday, 12 Dec 2023 | Volume20.Issue50
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Tuesday, 12 Dec 2023 | Volume20.Issue50
Special ReportsCOP28 in the UAE: Sustainable Islamic finance roadmap
Tuesday, 28 Nov 2023 | Volume20.Issue48
Special ReportsUnlocking synergy: International Commercial Terms and integration with Islamic finance products
Tuesday, 31 Oct 2023 | Volume20.Issue44
Special ReportsNigeria: Shariah as a business driver in the Islamic financial ecosystem
Tuesday, 17 Oct 2023 | Volume20.Issue42
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Tuesday, 25 Jul 2023 | Volume20.Issue30
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Tuesday, 04 Jul 2023 | Volume20.Issue27
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Tuesday, 27 Jun 2023 | Volume20.Issue26
Special ReportsHow fintech developments could be used in the current Takaful industry
Tuesday, 20 Jun 2023 | Volume20.Issue25
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Tuesday, 13 Jun 2023 | Volume20.Issue24
FeaturesCooperative hedging: A collaborative approach to hedging and risk management
Tuesday, 06 Jun 2023 | Volume20.Issue23
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Tuesday, 18 Apr 2023 | Volume20.Issue16
Special ReportsCBDC challenges in Shariah and liquidity risk management in Islamic jurisdictions
Monday, 03 Apr 2023 | Volume20.Issue14
Correspondent ReportsPromotion and improvement of Islamic financial products and services through machine learning
Tuesday, 21 Mar 2023 | Volume20.Issue12
Special ReportsPakistani regulator publishes draft guidelines to establish Islamic index and introduce Shariah supervisory boards
Monday, 06 Mar 2023 | Volume20.Issue10
ReportsIslamic security crowdfunding as alternative fundraising measure for SMEs in Indonesia
Tuesday, 28 Feb 2023 | Volume20.Issue09
FeaturesAdapting Ijarah structures to meet the UN SDGs
Tuesday, 03 Jan 2023 | Volume20.Issue01
Special ReportsIslamic finance in Senegal: Between the population’s craze and players’ lack of conviction
Tuesday, 13 Dec 2022 | Volume19.Issue50
Correspondent ReportsBNPL concerns underline importance of Islamic financing
Monday, 31 Oct 2022 | IFN Financial Innovation Report 2022
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Tuesday, 11 Oct 2022 | Volume19.Issue41
Special ReportsTakaful — the beauty of risk coverage in an Islamic way
Tuesday, 16 Aug 2022 | Volume19.Issue33
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Tuesday, 12 Jul 2022 | Volume19.Issue28
FeaturesSaudi Arabia steps up investment ambitions with new futures contracts — but are they compliant?
Tuesday, 28 Jun 2022 | Volume19.Issue26
Cover StoryIslamic finance and stablecoins
Monday, 20 Jun 2022 | Volume19.Issue25
Correspondent ReportsIslamic NFTs: The new kid on the block (chain)
Tuesday, 14 Jun 2022 | Volume19.Issue24
Cover StorySome facts on the prevailing system of Takaful
Tuesday, 24 May 2022 | Volume19.Issue21
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Tuesday, 26 Apr 2022 | Volume19.Issue17
FeaturesIslamic vantage point of ESG investment: An eternal effort to sustain the fragile future
Tuesday, 29 Mar 2022 | Volume19.Issue13
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Tuesday, 22 Mar 2022 | Volume19.Issue12
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Tuesday, 15 Mar 2022 | Volume19.Issue11
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Tuesday, 08 Feb 2022 | Volume19.Issue06
Special ReportsChallenges for Saudi Central Bank in the face of Shariah-based digitalization of money
Tuesday, 25 Jan 2022 | Volume19.Issue04
Special ReportsPublic asset Takaful — a way to shield from fiscal vulnerability due to catastrophic events
Tuesday, 18 Jan 2022 | Volume19.Issue03
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FeaturesIslamic sustainable finance and the IFSB initiatives
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Tuesday, 23 Nov 2021 | Volume18.Issue47
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Tuesday, 02 Nov 2021 | Volume18.Issue44
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AnalysesEducation in the Islamic finance industry
Tuesday, 24 Aug 2021 | Volume18.Issue34
Special Reports