Sahsin

Sahsin is a term used in the field of Islamic finance to refer to the practice of selling or trading in goods or assets with the intention of reselling them at a higher price. The term is derived from the Arabic word "sahs," which means "to sell." Sahsin is a common practice in Islamic finance, as it allows for the exchange of goods and services while adhering to the principles of Shariah law, which prohibits interest (riba) and uncertainty (gharar).

In Islamic finance, sahsin is considered a form of trade that is permissible as long as it is conducted in a transparent and fair manner. This means that the terms of the transaction, including the price and payment schedule, must be clearly defined and agreed upon by both parties. Additionally, sahsin is typically used to facilitate the exchange of goods and services between parties who do not have the necessary capital to purchase them outright.

Sahsin is often used in the context of leasing and rental agreements, where a party may purchase an asset with the intention of leasing it out to generate income. In this case, the lessee may be required to make periodic payments to the lessor, which can be structured in a way that avoids the payment of interest.

Overall, sahsin is an important concept in Islamic finance, as it allows for the exchange of goods and services while adhering to the principles of Shariah law. By providing a framework for transparent and fair trade, sahsin helps to promote economic activity and development in accordance with Islamic principles.