Khalabah

This entry examines the meaning and significance of the term khalabah from an Islamic finance and economics point of view. In reference to the recognition that Islamic finance is based on the encouragement of certain acts and prohibition of some others including riba, gharar, and maysar, the entry further underlines that khalabah is one of the acts that is discouraged and prohibited under Islamic law and Islamic business ethics for the sake of market stability and transparency. The prohibition of khalabah, referring to the acts that seek to mislead the marketing activities in a broadest sense, is one of such principles toward ensuring reliability of the market agents and transactions in Islamic finance and economics.