Ijarah and Ijarah Muntahia Bittamleek - Appendix C (Definitions)

Transcription

1. Shari ’ah Standard No. (9): Ijarah and Ijarah Muntahia Bittamleek Appendix (C) Definitions Ijarah The term Ijarah as used in this standard means leasing of property pursuant to a contract under which a specified permissible benefit in the form of a usufruct is obtained for a specified period in return for a specified permissible consideration. Ijarah Muntahia Bittamleek One of the forms of Ijarah used by Islamic financial Institutions is Ijarah Muntahia Bittamleek. This is a form of leasing contract which includes a promise by the lessor to transfer the ownership in the leased property to the lessee, either at the end of the term of the Ijarah period or by stages during the term of the contract, such transfer of the ownership being executed through one of the means specified in the Standard. 266