Ijarah (Islamic Leasing) is an agreement that permits one party (the lessee) to use an asset or property owned by another party (the lessor) for an agreed-upon rentals over a fixed period of time. It is a form of asset finance which has the benefit of using assets without the requirements of ownership. The lessee acquires the asset he needs without borrowing on interest and receives the benefits of use while the lessor receives the value of regular rental payments for a specified period plus the residual value of the asset. The lease may be written either for a short-term or for a long-term and its rules are similar to those governing sale because in both cases there is a transfer of one thing between two parties for valuable consideration. However, leasing differs from sale as its mechanism allows the separation between ownership and use; in fact, it does not involve transferring the corpus or ownership of an asset which remains with the lessor.

The aim of this forum is to explore the untapped market of Islamic leasing (Ijarah) and to adopt the latest trends, challenges and opportunities in Islamic banking and finance industry worldwide.

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