Ijarah Muntahia Bittamleek (Hire Purchase / Finance Lease)
An Islamic financing arrangement combining a lease (Ijarah) with a separate promise to transfer ownership of the leased asset to the lessee at the end of the lease term, either through a gift, nominal purchase, or gradual purchase structure. It is functionally similar to conventional hire purchase or finance leasing.
Ijarah (Islamic Lease)
An Islamic finance contract in which the owner (lessor) transfers the usufruct (right to use) of an asset to a lessee for a defined period in exchange for agreed rental payments. It is the Islamic equivalent of a lease and does not involve the transfer of ownership unless combined with a purchase agreement.
Carve-Out (Partial Spin-Off)
A corporate action in which a company sells a minority stake in a subsidiary through an initial public offering while retaining a controlling interest in the subsidiary.
Spin-Off (Demerger)
A corporate restructuring in which a subsidiary, division, or business unit of a company is separated and established as an independent entity, with shares distributed to existing shareholders of the parent company.
Merger
A corporate transaction in which two or more independent companies combine to form a single new entity, or one company absorbs another. Unlike an acquisition, a merger typically implies a mutual agreement between parties.
Initial Public Offering (IPO)
The first time a privately held company offers its shares to the general public on a regulated stock exchange. An IPO raises equity capital, provides liquidity to early investors, and subjects the company to ongoing disclosure and governance obligations.
Public Offering
The offer of securities to the general investing public, subject to a full regulatory process including the registration and approval of a prospectus. See also: IPO.
Private Placement
The sale of securities directly to a limited number of selected sophisticated or institutional investors, without a public offering. Private placements are subject to fewer regulatory requirements than public offerings but restrict the resale of securities.
Takaful Underwriting (Subscription)
In Takaful (Islamic insurance), the process by which participants (policyholders) contribute funds into a shared pool (Tabarru’ fund) to cover potential losses of any participant. The underwriting process assesses risk and determines contribution amounts.
Open Economy
An economy that engages freely in international trade and investment with other countries, with minimal restrictions on the flow of goods, services, and capital across borders.