Ijarah (leasing)

Ijarah, or leasing, is a financial arrangement where one party (the lessor) owns an asset—like a vehicle or property—and allows another party (the lessee) to use it for a specified period in exchange for periodic payments. It’s similar to a rental agreement but often involves the eventual transfer of ownership or an option to buy. Ijarah is based on principles of fairness and transparency, avoiding interest. It provides a flexible way to access assets without full purchase, ensuring both parties benefit through clear terms and mutual consent.