Subject category:
Finance, Accounting and Control
Published by:
Centre for Islamic Banking and Finance
Length: 15 pages
Data source: Published sources
Topics:
Islamic finance; Islam; Islamic banking; Muslims; Mudaraba; Murabaha; Musharaka; Ijara; Istisna; Sharia
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Abstract
Ijarah is an Arabic term with origins in Islamic Fiqh, meaning to give something to rent. Leasing is a contract whereby usufruct rights to an asset are transferred by the owner, known as the lessor, to another person, known as the lessee, at an agreed upon price called the rent, and for an agreed upon period of time called the term of lease. In this case the Ijara financing technique is applied to car finance.
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Abstract
Ijarah is an Arabic term with origins in Islamic Fiqh, meaning to give something to rent. Leasing is a contract whereby usufruct rights to an asset are transferred by the owner, known as the lessor, to another person, known as the lessee, at an agreed upon price called the rent, and for an agreed upon period of time called the term of lease. In this case the Ijara financing technique is applied to car finance.
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