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Home > QFINANCE Dictionary > Definition of ijara

Definition of



agreement by bank to purchase then lease item in Islamic financing, a leasing arrangement in which a bank or financier purchases an item for a customer, then leases it to the customer at a profit

ijara - Related Articles
  • Islamic Modes of Finance and the Role of Sukuk

    Best Practice

    Broadly speaking, Islamic modes of finance can be divided into two types: either they provide direct finance as capital funds through partnership (musharaka and mudaraba), or they provide indirect finance through leasing (ijara) and sale contracts (murabaha, bai ajil, salam, and istisna
    By Abdel-Rahman Yousri Ahmad

  • Islamic Capital Markets: The Role of Sukuk

    Best Practice

    State-owned land provided the asset backing, and an ijara structure was used, with the government selling the land to a special purpose vehicle (SPV) and leasing it back, and the investors in the SPV receiving a rental income as indirect owners rather than interest payments. The returns were, however
    By Rodney Wilson

  • Key Islamic Banking Instruments and How They Work


    This checklist provides an overview of Islamic banking instruments, such as murabaha, bai salam, istisna, ijara, and mudaraba.

  • Islamic Law of Contracts


    While many different types of contract exist, the most common contract for the sale of goods is the mu’awadat contract of exchange. These can include a barter-style exchange of goods, a sale of goods in exchange for money, or a money-exchange deal. Another common form of contract is ijara, which


Definitions of ’ijara’ and meaning of ’ijara’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’ijara’ and other financial terms with our online QFINANCE Financial Dictionary.

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