2. •
•
Literally means: to give something on rent.
It is defined as: ownership of the right to the
benefits of using an asset in return for
consideration {Rent}.
3. Operating Ijarah
Situation
Transfer of ownership
Financial Ijarah
Contracts that do not
end with the transfer of
ownership of leased
assets to the lessee.
Contracts that end up
with of ownership of
leased assets to the
lessee.
-Gift at the end of
period.
- Token of sale
consideration at the end
of period.
- Sale at specific amount.
-Sale during the lease
period for the remaining
installments.
- Gradual transfer
during lease period
7. 1. Leasing ( Ijarah ) is a contract . the owner of an asset
transfers it to another person for an agreed period, at an
agreed payment ( ujrah ) .
2. The assets must have a value
3. Must remain in the ownership of the person who own it .
4. The things that considered as a liabilities on the property
remains on the owner but the things that considered liability
use of the property is on the lessee .
5. The period of rent must be determined .
8. 6.The lessee cant use the property ( asset) for any
other purpose stated on the contract .
7. The lessee repay the lessor if he caused any harm
or damage to the property.
8. natural causes damages the asset the owner cant
ask the lessor to repay him .
9. If the property owned by two persons or more
their shares distribute depending on their
proportion share .
9. 10.The owner can give his share of the rent to his
partner not to any other person .
11.The the lessee must identify the asset ,
12. The rental must be determined at the time of
contract for the whole period of lease.
11.
Waleed has decided to study abroad after three years .
So he was wondering what is the best option he got for
buying or leasing a car . He has chosen the toyota FJ
2013 basic options silver color automatic gear . So he
asked salman what is the best way? buying or leasing a
car and Salman said buying a car by a ijarah contract or
murabaha contract in KFH since the other islamic
banks such as the ahli united bank only got one type of
ijarah ( ijarah muntahya bltamleek ) but Ahmed does
not agree with Salman and told Waleed that since there
isn’t an ijarah contract in NBK you can always take a
loan and buy the car or rent a car from a car rental
company like Aayan leasing company that follow the
islamic way of renting . So Waleed went through each
option and these are the results
12. (A) KFH “ Ijarah “
The car cost 10000 KD for three years the bank will lease it to
waleed at a total cost 10984 KD . Monthly payments 165 KD ,
Down payment 1000 kd and the car book value ( 4950 after
three years ) .
(B) NBK “ Loan “
In NBK waleed decided to take a loan 10000 KD for three years
with 300 KD monthly payments . The contract is Without
down payment but they offer maintenance for 20 KD each 3
months. Total cost of the loan with interest 10800 with nominal
rate 5%.
13. (C) KFH “Murabaha” contract
The car cost 10000 KD with murabaha contract it will cost 10800
with monthly payments 300 KD for three years without down
payments .
(D) Aayan lessing company
The car cost 10000 KD with down payment 599 KD , monthly
payment 222 KD for 2 years ,the cost for two years contract cost
80 KD , the book value for the car after two years 8000 KD
14.
15.
16. Company or bank :
Nom I :
EAR :
KFH ( IJARAH )
3.906 %
3.977 %
NBK ( Loan )
6.53 %
6.73 %
AAYAN
22.929 %
25.43 %
KFH ( Murabaha )
5.218 %
5.345 %
We conclude that KFH ijarah is the best for waleed
because its has the lowest I nom. and EAR
17.
We now know how the ijarah works and
operates . Its one of the most important islamic
financing instruments . the islamic finance
protect people from falling In reba or any garar
actions so our investments and assets stays
halal.
