Ijara derives
from the root word ajara -- to recompense, compensate or give a
consideration and return. In its juristic usage, Ijara primarily
refers to both a rental as well as a hire contract that engages the
services of persons.
Ijara is the
sale of benefits gift and charity which consist of the transfer of
the capital asset as a whole and not only of its benefits. Ijara is
thus a sale of benefits usually of durable goods. Consideration in
Ijara is normally payable toward the end of a particular period
ranges from week to years.
Since Ijara is
a variety of sale, it is lawful in everything that can lawfully be
bought and sold.
And since the
Ijara transfers the ownership of assets from the lessor to the
lessee, the former must not only own the assets involved but also
be able to transfer the ownership of its benefits to the lessee. It
is also a requirement of a valid Ijara that the capital asset
survives and does not perish with the Ijara. This would preclude
items such as food, fuel and money which cannot be used unless they
are consumed altogether.
Leasing is used
as a mode of financing by Islamic financial institutions with the
purpose of enabling customers to use durable goods and equipment
such as ships, aircraft heavy machines and plants in productive
enterprises without having to buy them. The banks are usually not
interested in the asset itself and the contract generally provides
for sale or gift of the asset to the lessee at the end of the
contract period.
Based on the
above explanation Anything that exist can be offered through Ijara
or Leasing.
