In response to the positions of contemporary fuqahā’ on several conventional
financial transactions, the sharī`a-compliant finance sector has developed a set of transactions that are named after and based on the traditional nominate transactions but serve the purpose of the conventional transaction that they are meant to replace.
Contemporary fuqahā’ aided in the innovation of these contracts—either by collaborating with financial engineers during the design process or by responding to the inquiries of financial engineer who came to them for approval of the contracts after they had been designed.
Sharī`a-compliant financial institutions—in the areas of project finance, trade
finance, consumer banking, home finance and insurance—have developed substitutes for interest-based debt financing and conventional insurance contacts. In the case of interest- based debt financing, the sector has developed three major classes of sharī‘a-compliant financing: bay‘-based financing (e.g. al-murābaha li l-āmir bi l-sharā’), shirka-based financing (e.g. al-mushāraka al-mutanāqisa) and ijāra-based financing (e.g. al-ijāra wa- al-iqtinā’ or al-ijāra al-muntihī bi l-tamlīk).