Bay’ Al-Dayn

This entry analyzes bay’ al dayn which refers to a contractual sale of the debts and further examines the legal basis of this transaction under Islamic law. The entry also deals with the requirements applicable to the sale and its implications on the conduct of Islamic finance and economics in the contemporary practices. In one respect, this specific type of deal resembles modern practices whereas it has its roots in the history of the classical Islam. The similarities and contrasts with other types of contractual deals are also underlined and noted in the entry which compares bay’ al dayn with other kinds.