Al Ijarah Thumma Al Bai Definition

The word ijara means renting hiring or leasing.

Al ijarah thumma al bai definition. Thumma means to be followed by or thereafter whilst the phrase al bai refers to sales. In ijarah the right to use the object is transferred to the hirer not its ownership. Ijarah thumma al bai means hire purchase it refers to how parties will enter into contracts which come into effect in a serial manner in order to form a complete lease or buyback transaction. Islamic banking a system of banking that only offers products that conform to the sharia or islamic law.

Definasi al ijarah thumma al bai i ialah sewa kemudian beli muamalah jenis ini adalah suatu daripada kaedah jual beli harga tangguh ataupun pada hari ini lebih dikenali hire purchase yang dibuat mengikut prinsip muamalat islam. News related to ijarah thumma bai 25 leasing versus ijarah. Because this involves higher risk than conventional banking services various highly technical products. Is there a distinction.

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. Juristic fiqh definition ijarah refers to a contract to utilize a lawful benefit against a consideration al zuhayli 2002. For example in islamic banking checking and savings deposits do not accrue interest. They either lie dormant until withdrawal or are invested.

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. A basic idea about the essence of ijara thumma al bai can be had by analyzing the words that make up the name. The financing based on aitab involves two types of contracts namely leasing. 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.

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. الإجارة al ijārah to give something on rent or providing services and goods temporarily for a wage a noun not a verb is a term of fiqh islamic jurisprudence and product in islamic banking and finance in traditional fiqh it means a contract for the hiring of persons or renting leasing of the services or the usufruct of a property generally for a. Al ijarah and al ijarah thumma al bai aitab motor vehicle financing siti munirah abd wahab nur wirda ahmed 2. Hence ijarah is a sale of usufruct not of a physical entity.

A form of ethical investments bound by the precepts of islam particularly the prohibition of interest payments.