To make a Murabaha transaction valid and halal, the bank must take constructive or physical possession of the asset and bear the ownership risk (such as damage) before selling it to the client. This risk-taking justifies the profit the bank makes.

Riba al-Nasi'ah is the 'interest of delay.' It is the most common form of riba, where an additional amount is charged above the principal because of the time period allowed for repayment. This is the core element prohibited in conventional bank interest.

Wakala is an agency contract where one person (Muwakkil) appoints another (Wakil) to act on their behalf for a fee (Ujrah). It is commonly used in Takaful (where the company acts as the manager of the fund) and in investment accounts.

Musharaka is a partnership where all parties contribute capital toward a business enterprise. Both profits and losses are shared among the partners; profits are distributed according to a pre-agreed ratio, while losses are strictly shared in proportion to the capital contribution.

The six ribawi items are gold, silver, wheat, barley, dates, and salt. When these items are exchanged for the same type (e.g., gold for gold), the exchange must be equal and hand-to-hand to avoid 'Riba al-Fadl' (excess in exchange).

Qard al-Hasan is a loan extended for charitable purposes or to help those in need. The borrower is only required to repay the principal amount. Islamic banks often offer these as a social service to students or low-income individuals.

Tabarru means 'donation' or 'gift.' In Takaful (Islamic insurance), participants donate a portion of their premiums into a shared fund. This removes the element of 'betting' on an accident (maysir) and replaces it with mutual aid and brotherhood.

Istisna is a contract for the manufacture or construction of an asset. Unlike Salam, where the price must be paid in full upfront, Istisna allows for deferred payments or installments based on the progress of the work, making it suitable for large-scale infrastructure and manufacturing.

Every Islamic financial institution must have a Sharia Supervisory Board consisting of scholars specialized in Islamic commercial law. Their job is to review contracts, audit transactions, and issue fatwas to certify that the bank's activities are halal (permissible).

In a true Mudaraba, the capital provider (investor) bears all financial losses. The manager (Mudarib) does not lose any capital because they didn't provide any, but they 'lose' their time and effort spent on the venture. This aligns with the 'Al-Ghunm bi al-Ghurm' (gain with risk) principle.