Ujrah

Ujrah, in Islamic finance, refers to the fee or compensation paid for services rendered, similar to wages for work done. It is an important concept that emphasizes the ethical provision of services and ensures both parties enter into agreements with clarity on compensation. Ujrah is particularly relevant in contracts, where the service provider must inform clients of the cost upfront. This practice upholds transparency and fairness, aligning with Islamic principles that discourage exploitation and promote justice in financial transactions. Understanding Ujrah helps in recognizing the ethical framework guiding financial and service-related agreements in Islamic finance.