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 (361)
Controls on Gharar in financial transactions
Tuesday, 22 May 2018 | Volume15.Issue21
Shariah StandardsQuantification of Market Gharar Metric
Wednesday, 10 Mar 2010 | Volume7.Issue10
FeaturesLIBOR transition: Challenges for Islamic banks
Tuesday, 23 Nov 2021 | Volume18.Issue47
FeaturesA personal perspective on cryptocurrency
Tuesday, 02 Nov 2021 | Volume18.Issue44
ColumnIslamic asset management: Shariah rules to follow
Tuesday, 02 Nov 2021 | Volume18.Issue44
FeaturesTrading and brokerage: Surge in trading during pandemic
Tuesday, 26 Oct 2021 | Volume18.Issue43
IFN AnalysisEducation in the Islamic finance industry
Tuesday, 24 Aug 2021 | Volume18.Issue34
Special ReportsIslamic syndicated finance’s contributory role toward Islamic finance
Monday, 09 Aug 2021 | Volume18.Issue32
Special ReportsDeveloping Islamic derivatives as real hedging instruments
Tuesday, 11 May 2021 | Volume18.Issue19
Special ReportsHedging: Innovation in Islamic derivatives
Tuesday, 27 Apr 2021 | Volume18.Issue17
FeaturesGermany’s Islamic finance market — a niche with great potential
Tuesday, 27 Apr 2021 | Volume18.Issue17
Special ReportsLIBOR in aviation and structured finance — an endangered species?
Tuesday, 16 Mar 2021 | Volume18.Issue11
Special ReportsIslamic financial instruments for social development
Tuesday, 02 Mar 2021 | Volume18.Issue09
Special ReportsShort-selling and Shariah: Was the Gamestop run Haram and are there Halal alternatives?
Tuesday, 16 Feb 2021 | Volume18.Issue07
Special ReportsA close look at short-selling from an Islamic finance perspective
Tuesday, 02 Feb 2021 | Volume18.Issue05
ColumnLuxembourg to play key role in renewed growth of Islamic finance on European continent
Tuesday, 22 Dec 2020 | IFN Annual Guide 2021
FeaturesRegulatory issues with Islamic financing
Tuesday, 15 Dec 2020 | Volume17.Issue50
FeaturesIndex basket futures contracts in Iran capital market
Tuesday, 10 Nov 2020 | Volume17.Issue45
FeaturesPostpaid Takaful: An innovative model with growth potential
Tuesday, 03 Nov 2020 | Volume17.Issue44
IFN Correspondent ReportsEgypt expands the list of permissible Sukuk structures
Friday, 30 Oct 2020 | Volume17.Issue44
IFN Correspondent ReportsTrading and brokerage: Rapidly developing sector
Tuesday, 27 Oct 2020 | Volume17.Issue43
IFN AnalysisTunisia readies for crowdfunding with new regulations
Tuesday, 20 Oct 2020 | Volume17.Issue42
Special ReportsRole of corporate governance in credit ratings
Monday, 13 Jul 2020 | Volume17.Issue28
IFN Correspondent ReportsIslamic economy for regional development through Islamic boarding schools
Tuesday, 23 Jun 2020 | Volume17.Issue25
FeaturesIslamic capital market transactions
Monday, 15 Jun 2020 | Volume17.Issue24
IFN Correspondent ReportsThe discussion on risks and their mitigation in a Mudarabah transaction
Tuesday, 28 Apr 2020 | Volume17.Issue17
Back to BasicsCOVID-19: Strange times, familiar principles
Tuesday, 21 Apr 2020 | Volume17.Issue16
Special ReportsIslamic venture capital and the future of Islamic finance
Tuesday, 14 Apr 2020 | Volume17.Issue15
Special ReportsElectronic payment systems and Shariah compliance
Wednesday, 04 Mar 2020 | Volume17.Issue10
IFN Correspondent ReportsPakistan sees execution of first Islamic synthetic forex hedging
Thursday, 30 Jan 2020 | Volume17.Issue05
IFN ReportsCan Islamic banking compete profitably with conventional banking in Kenya?
Tuesday, 21 Jan 2020 | Volume17.Issue03
Special ReportsIslamic treasury: A closer look
Tuesday, 07 Jan 2020 | Volume17.Issue01
Special ReportsThe future impact of Zakat in the new financial and digital economy
Tuesday, 03 Dec 2019 | Volume16.Issue48
Special ReportsThe importance of substance and form in Islamic finance for real benefit
Tuesday, 26 Nov 2019 | Volume16.Issue47
Special ReportsTransforming economies: Investment in MENA
Tuesday, 26 Nov 2019 | Volume16.Issue47
Events reportIs the current practice of Takaful companies in line with Takaful principles?
Tuesday, 19 Nov 2019 | Volume16.Issue46
FeaturesMajor challenges facing Muslim countries in developing fully-fledged Islamic capital market
Tuesday, 12 Nov 2019 | Volume16.Issue45
FeaturesTrading and brokerage: The rise of digital assets
Tuesday, 29 Oct 2019 | Volume16.Issue43
IFN AnalysisIslamic finance
Tuesday, 29 Oct 2019 | Volume16.Issue43
ColumnDerivatives and hedging: Controversial but necessary?
Tuesday, 15 Oct 2019 | Volume16.Issue41
IFN AnalysisThe development of derivatives in Islamic banking
Tuesday, 15 Oct 2019 | Volume16.Issue41
Special ReportsAnother cryptocurrency exchange eyeing Shariah compliance to tap demand in Muslim-majority nations
Tuesday, 08 Oct 2019 | Volume16.Issue40
IFN ReportsSecuring obligations arising out of loan agreements under Saudi Arabian law
Tuesday, 01 Oct 2019 | Volume16.Issue39
IFN Correspondent ReportsThe alternative to conventional insurance
Wednesday, 18 Sep 2019 | Volume16.Issue38
IFN Correspondent ReportsThe value of Shariah certification in the Islamic capital market
Tuesday, 03 Sep 2019 | Volume16.Issue35
Special ReportsTrading within the scope of Islamic finance
Tuesday, 06 Aug 2019 | Volume16.Issue31
Special ReportsRegulation of Islamic banks
Monday, 29 Jul 2019 | Volume16.Issue30
ColumnEthical principles underlying Islamic finance (Part I)
Friday, 28 Jun 2019 | Volume16.Issue26
IFN Correspondent ReportsDerivatives and hedging in Islamic finance
Tuesday, 18 Jun 2019 | Volume16.Issue24
Special ReportsCan microfinance be the torchbearer for a more ethical value proposition?
Thursday, 21 Mar 2019 | Volume16.Issue12
IFN Correspondent Reports