Islamic lease agreement

An Islamic lease agreement, known as Ijarah, is a contract where a property or asset is rented out by the owner (lessor) to a tenant (lessee) for a predetermined period and fee. It emphasizes fairness and transparency, avoiding interest (riba) by setting payments for the use of the asset rather than lending money. The agreement specifies the rights and responsibilities of both parties, including maintenance and usage terms, ensuring the transaction aligns with Islamic principles of ethical and just conduct. It is commonly used for leasing property, equipment, or vehicles.