Hilah
حيلة
Pronunciation: HEE-lah
A legal stratagem: a contract structured to reach a result the law forbids by a route it permits.
Definition
A device (plural hiyal) that uses formally valid contracts to achieve an outcome Islamic law prohibits, most often disguised interest. Classical jurists split: the Hanafi school tolerated some hiyal as lawful means to lawful ends, while Maliki and Hanbali scholars, Ibn Taymiyyah most forcefully, condemned stratagems whose purpose is to circumvent a prohibition.
Modern debates about Bai' al-Inah, Tawarruq, and some Sukuk structures are debates about whether they are legitimate contracts or hiyal. The concept gives critics and scholars a shared vocabulary for halal-washing.
Related Terms
Bai' al-Inahبيع العينة
A sale-and-buyback arrangement used to generate cash flow.
Tawarruqتورق
A monetization arrangement involving the purchase and immediate resale of a commodity to obtain cash.
Maqasid al-Shariahمقاصد الشريعة
The higher objectives of Islamic law - preservation of faith, life, intellect, lineage, and wealth.
Ribaربا
Interest or usury - the most strictly prohibited practice in Islamic finance.
Darurahضرورة
Necessity: a condition under which an otherwise prohibited act becomes temporarily permissible.
Profit Rate
The pricing term halal financing providers use in place of an interest rate; it prices a sale or lease, not a loan.
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Hilah (حيلة) - A legal stratagem: a contract structured to reach a result the law forbids by a route it permits. A device (plural hiyal) that uses formally valid contracts to achieve an outcome Islamic law prohibits, most often disguised interest. Classical jurists split: the Hanafi school tolerated some hiyal as lawful means to lawful ends, while Maliki and Hanbali scholars, Ibn Taymiyyah most forcefully, condemned stratagems whose purpose is to circumvent a prohibition.
- A legal stratagem: a contract structured to reach a result the law forbids by a route it permits.
- Category: General
- Related: Bai' al-Inah, Tawarruq, Maqasid al-Shariah, Riba, Darurah, Profit Rate
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
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