Ijarah (Leasing): Literally: the reward given for service rendered. It is derived from the root word ajara to recompense, compensate or to give a consideration or return. Ajr (wage) when used in the context of ijarah means the reward given for work or a service, or a compensation given by the lessee for usufruct in a lease contract. An ajir (worker) (pl. ujar') is a person whose labour is the usufruct, i.e., the subject matter of a lease contract. He could also be called musta'jar (hired) or mu'ajjir (lessor), the owner of the leased property. On the other hand, a musta'jir (lessee) is the beneficiary of the services of a worker or of the leased property. Technically: a contract for transfer of ownership of usufruct for compensation. Some said: sale of a known usufruct for a known compensation. Thus, the lease contract belongs to contracts of financial exchange. Scholars agree that leasing is a lawful contract. The majority of jurists rules that a lease is a binding contract, and they stipulated as a condition for its validity that the usufruct and the compensation must be known. With regard to the time that lease contracts become effective, they are classified into three categories: immediately effective leases, leases effective from a future date, and leases made contingent upon a future event. See ISRA Islamic Financial System: Principles and Operations for further details.

Resolution No. 137 (3/15): Sukuk Al-ijarah
A Client Pays Full Rent at the beginning of the Month but Leaves in the middle
A Tenant Requests Early Termination of a Lease Agreement
Appointing Lessee to Buy Insurance on the Leased Asset
Buying an Asset That Is Leased to a Third Party
Can a Building Be Rented Out before It Is Built?
Can a Contractor Sub-Contract a Job?
Can a Fee Be Charged to Transfer a Lease Agreement from One Tenant to Another?
Can a Landlord Give Selective Discounts to Some Renters?
Can a Tenant Cancel a Lease Agreement before Using the Usufruct?
Can One Partner Lease his Half of a Jointly Owned Asset to Another Partner?
Can the Building Owner Pay Tenants to Leave before the Lease Expires?
Can the Lessor Invest the Tenant’s Security Deposit?
Can the Lessor Unilaterally Modify the Lease to Pass on Increased Costs?
Can Usufruct or a Service Be Purchased and Then Resold to a Third Party?
Does the Client or the Contractor Have the Right to the Subcontractors’ Reduction of Charges after the Bid Has Been Accepted?
Does the Manager of a Real Estate Portfolio Have to Pay the Investors Rent for the Use of Office Space in a Portfolio Building?
Financing Interval
Gifting an Asset at the End of a Lease
Hibah In Al-Ijarah Thumma Al-Bai’
Leasing an Asset to Someone Who May Use It for Unlawful Acts
Leasing Combined With Property Development
Insurance Expenses Paid by Lessee
Leasing Fund: Calculating Zakah
Maintenance Expenses: Maximum Allowable Amount
Penalty on Non-Fulfillment of Ijarah
Renting Property to a Non-Muslim Embassy
Selling or Buying Something Leased to a Third Party
Setting the Sale Price of a Hire-Purchase Property before the Sale
Using a Brokers to Find a Lessee
When Land Is Rented to Build a Piece of Property upon It, When is the Rental Fee Assessed?
Who Is Liable for Damages to Rental Property?
Zakah on Leased Asset
Some examples of Shariah observations in relation to some conventional Ijara Wa AlEqtina contracts
Estimation of Rent in Ijarah Wa Iqtina
Transfer of ownership in lease ending into ownership
Demonstration of the Sharih origins of Ijarah Wa Iqtina (Lease ending into ownership)
The outcome of lease ending into ownership - Ijarah Muntahia Bittamleek
Types of lease ending into ownership (Ijarah Muntahia Bittamleek)
Features of financial lease
Lease of the leased asset
Group Shariah opinion (Fatwa) on re-lease
Termination of lease
Entitlement in lease
Rules of invalid Ijarah
Provisions of proper Ijarah
Ijarah being binding or not:
Types of Ijarah according to the leased asset:
Maintenance of the leased asset (Ayn)
Lessor and Lessee Consequential Commitments
Pillars of Ijarah
Description of Ijarah (Charging ruling & Evidence)
Ijarah definition
شراء البنك آليات وتسجيلها باسمه وتأجيرها للغير
شراء البنك آليات وتسجيلها باسمه وتأجيرها للغير
Resolution No: 13 (1/3)[1]: Concerning The Islamic Development Bank’s inquiries
Can a Seller Stipulate That the Buyer Lease the Property to Him after Purchasing It?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 151st Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 145th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 140th Meeting
Can Someone Who Finds Clients to Lease Property Charge a Fee for Doing so?
Car Rental Ending in Partial Transfer of Ownership
If the Manager of a New Building Doesn’t Consider Key Money Lawful, but the Owner Does
Is It Allowed to Rent a Building to Employees of an Interest-Based Bank?
Is It Allowed to Rent a Property to an Interest-Based Bank?
Resolution No. 73: Leasing a specific asset (from a certain party) for a specific period of time and subleasing the same asset to a third party
Resolution No. 107: Leasing out part or all of a piece of property owned by the Corporation
Resolution No. 108: Purchasing leased assets and equipment
Resolution No. 112: The permissibility of transferring the title of the leased property to the lessee and perfecting a lien on the property
Resolution No. 114: The permissibility of the lessee participating in the profit or loss when the leased asset is sold
Can a Building on State-Owned Land Be Sold by Murabahah without the Land It Sits on?
TIME SHARING قرار رقم 170 (8/18) بشأن عقد التملك الزمني
رهن محل تجاري للبنك وتمكينه من الانتفاع بنصف مردود المحل المرهون
Ensuring Proper Separation Of Contracts
Resolution No. 2 (2/2): Concerning Zakah on Real Estate and Non-Agricultural Leased Land
The Seller Stipulates That the Buyer Lease Back the Purchased Item to the Seller
House Purchase by Diminishing Partnership
What is the Ruling on ‘Key Money’?
Lending Someone Money to Pay a Key Money Fee
Can Contests with Prizes Be Used to Encourage Tenants of Properties Owned by an Islamic Bank to Open Accounts with the Bank to Facilitate Rent Payments?
Is It Lawful for the Buyer to Lease an Asset to the Seller after the Sale?
Can the Buyer of a Commodity Lease It Back to the Seller with a Promise to Sell It Back to Him at the End of the Lease Term?
Is it Lawful, after Buying Real Estate, to Rent It Out to Its Previous Owner?
Can an Islamic Entity Buy Real Estate in a Non-Muslim Country if a Tenant Has a Long-Term Lease That Allows It to Sell Alcohol?
Is It Allowed to Stipulate an Option to Either Buy Leased Property at the End of the Lease Period or Renew the Lease?
Can the Rental Fee in a Lease Contract Be Variable if the Amount for Each Period Is Pegged to an Established Standard That Does Not Lead to Dispute?
Can the Lessor Charge the Lessee a Fee for Transferring the Lease to His Name?
Is It Allowed to Invest the Deposit of a Lease Contract?
After Buying Real Estate, Is It Allowed to Appoint the Seller as an Agent to Lease It Out?
Can a Lessor Stipulate that the Lessee Must Bear the Maintenance Costs?
Must the Owner’s Agent Reveal the Owner’s Name to the Lessee in a Lease Agreement?
Can an Equipment Owner Assign an Agent to Manage the Equipment Leasing to Other Parties for an Agreed Agency Fee?
Is it Allowed to Stipulate a Penalty Clause against the Defaulting Lessee in a Lease Contract?
What Is the Rule When the Law of a Country Contradicts the Shari‘ah; e.g., When the Law Imposes Maintenance Costs on the Lessee?
Is It Allowed to Sell, for Deferred-Payment, the Usufruct of Property Purchased by a Long-Term Lease?
Must the Lessee Pay Rent if the Leased Property Is Damaged?
Are Operational Leases and Finance Leases Both Considered Valid Lease Agreements?
Is It Permissible in a Lease Contract to Impose Fees on the Lessee for Ads and Promotions?
Is “Key Money” Lawful When Leasing Shops?
Is It Allowed to Enter into Lease Contracts That Include Penalty Clauses? If So, What Should Be Done with Penalty Fees Collected?
Is It Allowed to Lease Real Estate to Insurance Companies That Offer All Kinds of Insurance?
Is It Permissible to Distribute Profits before They Are Earned?
Is It Allowed to Enter a Lease Contract That Ends with the Purchase of the Leased Property?
Is It Allowed to Buy a Shop from the Lessee and Then Sell It Through Murabahah?
Is It Allowed for the Buyer to Appoint the Seller as an Agent to Lease the Sold Commodity?
Is It Allowed To Lease to the Seller through a Separate Contract from the Sale Contract?
Is It Allowed for a Member of the Board of Directors to Rent a House from the Company He Manages?
Is It Allowed to Sell a Share of Common Property That Has Been Leased Out?
Can Lucky Draw Prizes Be Used as a Marketing Tool?
The Use of Mannequins to Display Clothing
Can a Muslim Property Owner Lease Premises to a Foreign Exchange Company?
Can Waiving a Debt Be Considered Payment of Zakah?
Is it Allowed to Lease a Property and Build Residences to be Leased to the First Owner of The Property?
What Is the Ruling on the Islamic Lease Sukuk for the Government of Bahrain?
What Is the Ruling of Investment Fund for Ijarah?
What are the Conditions of Istisna‘ Contract?
Is it Allowed to lease a Building with the Option to Purchase the Building at a Pre-Agreed Price?
Is it Allowed to Purchase a Property registered under the seller’s name with the condition that the seller shall then lease the real estate from the buyer?
Is it Allowed to Purchase a License from a Company and Leas It to the Same Company?
Is it Allowed to Lease an Asset form the State and Lease It to the State?
What are the Condition in Financing the Building of an LPG Vessel?
Is it Allowed for a Fund to Stipulate that Sale of Shares Must be Done for the Partners Only?
What are the Rulings for a Short Term Liquidity Management Fund?
Is it Allowed to Combine Between Istisna‘ and Ijarah?
Is it possible to enter into a Shari’ah-compliant financial agreement with the Turkish government by purchasing the usufruct of their assets?
Is it Allowed to Purchase and Sale of Patent and Concession Rights through Murabahah or Istisna’?
Is it Allowed to Lease a Real Estate Property for 5 years with Option to Purchase the Real Estate at any time during the Lease Term?
Is it permissible to purchase a commercial complex and allow current tenants to remain in it providing that two of the tenant are involved in riba transactions?
What is the Shari’ah compliant way to structure the purchase and lease of two airplanes?
Is it permissible to buy a leasing company which has some assets in the form of treasury bonds?
Is it allowed to buy a telecommunication services from a mobile service provider and then lease it to its clients?
Is it allowed to buy petroleum equipment from the producer and sell it by murabahah to the client along with a guarantee by the producer?
What is the opinion on KFH Malaysia’s Automobile Departments Products?
Is it permissible to fund two projects (properties under construction) through a Murabahah contract?
Is It Allowed for the Law Firm to Charge Fees to the Lessee for Late Payment?
Is it Allowed for KFH to Involve in an Ijarah Financing with a Promise to Give the Assets to the Lessee?
Is it Allowed to Rent Out Airplanes to Foreign Companies that Sell Alcoholic Drinks to Passengers?
Is it Allowed to Involve in an Investment Project to Establish Satellite Communication Stations and Lease them Out?
Is it Allowed to Involve in an Investment Project to Establish Satellite Communication Stations and Lease them Out?
Is it Allowed to Involve in an Investment Project to Establish Satellite Communication Stations and Lease them Out?
Is it Allowed to Reduce the Asset Value in Order to Reduce the Rent which is a Percentage of the Asset Value?
Is it Allowed to Involve in a Project that Provides Credit Lines to Invest in Education?
Is it Allowed to Purchase the Land’s Usufruct from the Lessee and Lease it Back to the Lessee?
Is it Permissible to Purchase a Land’s Usufruct Together with the Constructed Facilities from a Company that Promises to Lease the Constructed Facilities from KFH?
What’s Your Opinion Regarding the Treatment of a Composite Lease as a Loan by the US Internal Revenue Service (IRS)?
Is it Allowed to Participate in a Portfolio Where the Establisher Will Act as an Agent as well as a Principal on its Own Behalf?
What’s the permissible Means to Finance the Electricity Project in Turkey?
Is it Allowed to Participate in a Lease Contract that is Currently Established on Conventional Lease Agreement in Order to be Leased Using a Shari’ah Compliant Lease Agreement?
Is it Allowed to Participate in a Lease Contract That Contains a Clause which Contravenes the Laws of Shari’ah?
Is it Allowed to Lease Existing Real Estate Properties that Are Already Leased?
What is the Ruling on Having a Lease Agreement for a Real Estate Property but with Different Rent Values?
What is the Ruling on Collecting an Advance Rent Payment from the Lessee as a Security Deposit to Compensate for the Actual Damages that might Be Caused by the Lessee?
What is the Fatwa Committee’s Opinion of this Structure of Establishing a Fund for Leasing Out Airplanes?
What is the Fatwa Committee’s Opinion about the Entity Responsible for Repairing Rented Cars Damaged Due to Floods?
Is it Allowed to Enter into a Contract with an Owner of Residential Units in Makkah in which the Contract Grants KFH the Usufruct of the Residential Units for the Period of 99 Years?
What Is the Ruling on Applying a Lease Contract with a Bilateral Promise to Transfer Ownership to the First Seller?
Is It Allowed for KFH to Purchase an Investment complex and Lease it back to the Original Seller (the previous owner) Using ijarah muntahiyah bi al-tamlik Agreement?
Is It Allowed to Lease Buildings from an Entity and then Lease These Buildings to Another Entity for the Same Period, Noting that the Two Parties Are a Married Couple?
Is It Allowed to Charge Rescheduling Fees Equivalent to the Actual Expenses Incurred by the Lessor?
Is it Permissible for KFH to Purchased a Leased Land, and the Usufruct of the Building Will Be for the Land’s Lessee?
Is it Allowed to Charge Fixed Rescheduling Fees that Are Based on Commercial Standards so that the Fees Charged by KFH Are in Line with Those Charged by Other Banks?
Is it Allowed to Purchase Warehouses that Are Leased to Other Parties, and What is the Rule on the Rent Generated from Storing Musical Instruments?
Is it Allowed to Purchase a Real Estate Properties that Are Leased to Two Companies where the First Is a Health Insurance Company and the Second is a Financial Collection Company?
Is it Allowed to Participate in an Investment Consists of Leased Offices Where the Cafeteria Cannot Be Guaranteed not to Sell Pork?
What is the Ruling on Providing Islamic Financing to a Company for Leasing an Entire Level in a Tower Under Construction that Belongs to KFH?
Is it Allowed for KFH and its Investors (KFH-SPV) to Lease Airplanes from Another Party (Barclays-SPV) and then Lease Out the Planes to the End Lessees?
Is it Allowed for the Seller to Request the Purchaser to Pay the Rent for a Period before the Sale Contract is Effective?
Is it Allowed to Lease out a Real Estate to a Customer and Grant Him the Right to Sublease the Real Estate?
Is it Permissible for the Real Estate’s Owner to Request the Tenant to Concede the Remaining Lease Term in Return for an Agreed Amount of Money?
What’s the Fatwa Committee’s Opinion on the Islamic ijarah deal that will be executed in favor of Bahrain Petroleum Company (BAPCO)?
Is it Allowed for KFH to Lease a Building Owned by a Conventional Bank in order to Use it for its Offices?
What is the Ruling on Leasing a Building to the Owner of the Building’s Land?
What is the Ruling on Leasing an Apartment or Building under Construction through ijarah mawsufah fi al-dhimmah (Forward Lease)?
Is a Lessee Allowed to Claim the Remaining Period Rent, or is the Lessor Allowed to Keep this Rent if a Lessee Wants to Terminate the Lease Agreement before the End of the Agreed Lease Term?
Is it Allowed for the Lessor to Take an Agreed Amount of Money from the New Lessee if the Old Lessee Wants to Transfer the Shop’s Lease Agreement to Him?
Is it Allowed for KFH to Reserve the Right to Collect the Rent Payments from a Conventional Insurance Company if the Customer Violates any of the Terms of Ijarah Financing Agreement?
Application of al-Ijarah thumma al-Bai` in Vehicle Financing
Assignment of Liabilities in al-Ijarah thumma al-Bai`
Ownership Status of Ijarah Asset
Termination of Ijarah Contract
Issuance of Bank Negara Negotiable Notes Based on Ijarah Concept
Ijarah Contract with Floating Rental Rate
Absorption of Costs Associated with Ownership of Asset in Ijarah
Liability of Lessee over Third Party’s Asset
Application of Ijarah Mawsufah fi al-Zimmah Concept in Financing for House under Construction Based on Musyarakah Mutanaqisah
Deposit Payment in Islamic Hire Purchase
Financing Based on Musyarakah Mutanaqisah
Application of Wa`d as a Mechanism in Dealing with Customer’s Default in Financing Based on Musyarakah Mutanaqisah

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