Bay al Salam

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Bay al Salam

In Islamic finance, a sale in which delivery is deferred until some stated date in the future. It is used for agricultural products and other fungibles. In order to comply with the sharia, a salam contract must specify the quality of the good to be delivered, and payment must be made at the time the contract is entered.
References in periodicals archive ?
It is based on the Sharia guidelines for the purposes of trade related to Murabaha, Mudarabah, Ijarah, Istisna, Bai Salam, project finance, real estate and others.
Similar to Bai Salam, except that in Bai Salam, the full payment is made in advance, ie before the delivery of the goods.
Possession of assets - A party is not allowed to sell or deal in items which are either borrowed, or which have not yet come into existence (the only exceptions to this are the Bai Salam and Bai Istisna' models and these shall be examined in the further articles in this series).