Al Ijarah Thumma Al Bai Definition

Al ijarah ijarah is an arabic term with origin in islamic meaning to give something on a rental basis or wages it is islamic alternative to conventional leasing.

Al ijarah thumma al bai definition. Is there a distinction. Bai bithaman ajil bba sale contract based on deferred installment payment at. Ijara thumma al bai synonyms ijara thumma al bai pronunciation ijara thumma al bai translation english dictionary definition of ijara thumma al bai. Al ijarah thumma al bay aitab aitab also known as ijarah wa iqtina or al definition ijarah muntahiya bi tamlik definition.

Up to 9 years. Al ijarah thumma al bai aitab lease contract followed by ownership of asset through a sale contract. The first contract in this serial process is known as ijarah and its purpose is to outline all of the terms for the leasing or the renting. The principle governing an ijarah contract at the end of the lease period when the lessee buys the asset for an agreed price through a purchase contract.

For example in islamic banking checking and savings deposits do not accrue interest. The financing based on aitab involves two types of contracts namely leasing. In ijarah the right to use the object is transferred to the hirer not its ownership. Because this involves higher risk than conventional banking services various highly technical products.

Ijarah muntahia bi al tamlik or al ijarah thumma al bai. Juristic fiqh definition ijarah refers to a contract to utilize a lawful benefit against a consideration al zuhayli 2002. Application of al ijarah thumma al bai in vehicle financing there has been a proposal by an islamic financial institution to introduce vehicle financing based on al ijarah thumma al bai aitab concept. Islamic banking a system of banking that only offers products that conform to the sharia or islamic law.

A form of ethical investments bound by the precepts of islam particularly the prohibition of interest payments. Sale contract followed by repurchase by the seller at a different price. Hence ijarah is a sale of usufruct not of a physical entity. News related to ijarah thumma bai 25 leasing versus ijarah.

Evidences owning the benefit of certain assets for a specific period of time by paying an agreed sums of rental with an agreement pillars that the owner will transfer the rented asset to the hirer at the end of the agreed period or during the period. Al ijarah and al ijarah thumma al bai aitab motor vehicle financing siti munirah abd wahab nur wirda ahmed 2.