 By:-

Dallah Al-Baraka Group

Al-Baraka Banking Group (ABG)
Depart of Research & Development
 Written by:
Dr.Abdul Sattar Abu Ghuddah -
 Ijarah is the mode of Islamic financing .
And it has many other names like leasing
renting lending but most common one is used
is leasing .
 An exchange transaction applicable in Islamic
regions. It is trading a specified asset available
in for a payment where the ownership of the
asset is not transferred. This is similar to a
type of mortgage loan with no requirements
for down payment, such as a rent-to-own
arrangement in pakistan
 It is defined by jurists as: "Possessing of a
usufruct “(the right to enjoy the use and
advantages of another's property short of the
destruction or waste of its substance)” for a
consideration"
 Text is constituted of offer and acceptance
 Contracting party which is constituted of two
parts: Lessor who is the owner of the asset
(Ayn), and lessee who is the beneficiary of
the property.
 The subject of the contract which is
comprised of two parts:
Rent and usufruct.
 For example: " I rent you the car“
Ijarah takes place by utilizing the usufructs
while maintaining the asset But he cant further
sell it
End ofcontracts every of the2 contracting events
should own the thing that is necessary for the
achievement of a specified end
They need to be of sound mind and best
discretion
 Usufruct(“the right to enjoy the use and
advantages of another's property short of
the destruction or waste of its substance) “
and rent are the subject matter of Ijarah
contract.
 The basic principle of Ijarah is that it must be
immediate . If immediate nature of Ijarah is not
obstructed by something, or the contract
commencement is not stated clearly, hence
Ijarah shall commence at the time of
contracting, and becomes immediate Ijarah
 First :
The contract is executed for a usufruct of a
particular asset
Example:
Some one says to the other :"I let you this
house", or the contract is executed for usufruct
of an asset described on liability e.g. I let you a
camel whose description is so and so
Second:
The contract is executed for a particular work
Example:
some one says to the other :" I hire you to build
me this wall or make me this box, or any other
type of contracting with craftsmen as the
contract is made for the work provided by them,
though the ultimate goal of this contracting is to
acquire the resultant usufructs,
 The subject matter of Ijarah is either hire of
usufructs of precise property or hire of
usufructs described on legal responsibility.
 The lease of an asset is the lease at
the usufruct of a selected asset
along with: assets, animal or human gain
 Ijarah of assets other than animals
 Ijarah of Houses and Buildings
 Ijarah of vehicles
 Thisstudy allows in expertise that how
Ijarah affects on Islamic banking. Being a
Muslim is our obligation to
keep away from all the ones sports which can
be prohibited in Islam hobby is one of them in
our society human beings don’t understand