Pronunciation: [ɹˈiːbə] (IPA) 
RIBA is a four-letter word that is pronounced as "REE-bah". This abbreviation refers to the Royal Institute of British Architects, a professional association for architects based in the United Kingdom. In terms of its spelling and pronunciation, the word RIBA is made up of two syllables, with the first syllable being pronounced as "REE" and the second syllable as "bah" (rhymes with "car"). The IPA transcription for RIBA is /ˈriː.bə/.
Riba is an Arabic term commonly used in Islamic finance and banking to refer to the prohibition of usury or excessive interest. It is considered a major sin in Islam, alongside theft and murder, and is forbidden under Shariah law.
In essence, Riba refers to any unjust and exploitative increase in the amount of a loan or debt, regardless of the area of application. This means that it is not limited to interest charged on monetary loans, but also extends to various financial transactions, such as selling goods on credit with the condition of additional payment. Riba undermines the principles of fairness and equality in financial dealings, as it allows one party to profit unjustly at the expense of another.
Islamic scholars have defined two primary types of Riba: Riba al-nasi'ah and Riba al-fadl. Riba al-nasi'ah refers to the charging of interest or increase on a loan, while Riba al-fadl involves an unfair exchange in trading, where one party receives more for a specific commodity compared to another.
Islamic financial institutions have emerged as an alternative to conventional banking systems, providing halal (permissible) financial services that comply with Shariah principles. These institutions offer various products, such as Islamic mortgages, Islamic bonds (sukuk), and profit-sharing partnerships (mudarabah), allowing Muslims to engage in financial transactions without violating the prohibition of Riba.
Overall, Riba represents a core pillar of Islamic finance, emphasizing the importance of justice, fairness, and ethical financial conduct while discouraging exploitative practices.
