Editing Islamic banking and finance (section)

==== Ijarah ====
''Ijarah'', (literally "to give something on rent")<ref name="Islamicity">{{cite web|title=Islamic Glossary. Ijarah |url=http://www.islamicity.org/IslamicGlossary/action.lasso.asp?-Search=fsearch&-database=Services&-Table=islamicglossary&-noresultserror=searchglossary.asp&-Response=searchglossary.asp&-MaxRecords=30&-SortField=Term&-SortOrder=Ascending&-op=cn&fsearch=Ijarah |website=Islamicity |access-date=19 August 2017}}</ref>
is a leasing or renting contract.<ref name="Ijara-Contracts">{{cite web|title=Ijara Contracts|url=https://ijaracdc.com/ijara-contracts/|website=IjaraCDC|access-date=5 October 2017}}</ref> In traditional Islamic jurisprudence (''[[fiqh]]''), it means a contract for the hiring of persons, services, or the "[[usufruct]]" of a property, generally for a fixed period and price.<ref name="meaning">{{cite journal|title=MEANING OF IJARAH|url=https://www.academia.edu/3583126|website=academia.edu|access-date=21 July 2016|last1=Fatma|first1=Asma}}</ref>

In Islamic finance, ''al Ijarah'' usually refers to a leasing contract that also includes a sales contract. Property such as plant, office automation, or motor vehicle, is leased to a client for stream of rental and purchase payments, so that the end of the leasing period coincides with completion of purchase payments and transfer of ownership to the lessee, and otherwise follows Islamic regulations.<ref name="meaning"/> 
There are several types of ''ijarah'' in Islamic finance ("operating ijarah" or ''ijarah tashgheeliah'', are leases without sales and finance):

===== Ijarah thumma al bai' and Ijarah wa-iqtina =====
''Ijarah thumma al bai''' (hire purchase)<ref>{{cite web|title=Ijarah thumma al bai'|url=https://ijaracdc.com/ijarah-thumma-al-bai/|website=IjaraCDC|access-date=4 October 2017}}</ref> and ''Ijarah wa-iqtina''<ref name="Definition of Ijarah wa-iqtina">{{cite web|url=https://www.islamicbanker.com/dictionary/i/ijarah-wa-iqtina|title=Definition of "Ijarah wa-iqtina "|website=Islamic Banker|access-date=21 July 2016|archive-date=11 July 2015|archive-url=https://web.archive.org/web/20150711201441/http://www.islamicbanker.com/dictionary/i/ijarah-wa-iqtina|url-status=dead}}</ref> ("lease and ownership")<ref name="if-literal">{{cite web|title=ijara|url=http://www.islamic-finance.com/item_ijara_f.htm|website=Islamic-finance.com|access-date=19 August 2017}}</ref> involve the leasing/renting/hiring of a good, paid in installments and ending with its purchase (or option to purchase) by/for the customer.<ref name="Definition of Ijarah wa-iqtina "/> Both involve two contracts – a lease and a transfer of ownership of the asset or the property – that should be recorded in separate documents.<ref name=":1">{{cite web|url=https://ijaracdc.com/what-is-ijara-wa-iqtina/|title=What is Ijara wa Iqtina?|website=Ijara CDC|access-date=21 July 2016}}</ref>

The two modes differ in that in ''Ijarah wa-iqtina'' (or ''ijara muntahia bittamleek'') sale/ownership transfer is "an option given to the lessee" and cannot be a precondition.<ref name=":1"/> In ''ijara thumma bay''' sale is part of the contract.<ref name="I&F">{{cite web|title=What is the Difference Between Ijara Muntahia Bittamleek and Ijara Thumma Bay'?|url=http://investment-and-finance.net/islamic-finance/questions/what-is-the-difference-between-ijara-muntahia-bittamleek-and-ijara-thumma-bay.html|website=Investment & Finance|access-date=4 October 2017}}</ref>

===== ijara mawsoofa bi al dhimma =====
In a "forward ijarah" or ''ijara mawsoofa bi al dhimma'' Islamic contract, the service or benefit being leased is defined, rather than the particular unit providing that service/benefit.
In contemporary Islamic finance, it is used to finance construction (of a home, office, factory, etc.) combined with a ''Istisna'' contract.<ref name="FJIFD2012:158"/> The party begins leasing the asset after "taking delivery" of it.<ref name="i&f">{{cite web |title=Ijarah Mawsufa fi al-Dhimmah |website=investment&finance |url=http://investment-and-finance.net/islamic-finance/i/ijarah-mawsufah-fi-al-dhimmah.html |date=12 February 2013|access-date=25 September 2017}}</ref>

===== Ijarah challenges =====
Among the complaints made against ''ijara'' are that in practice some rules protecting the customer are overlooked,<ref name="IIFTU1998:167">[[#IIFTU1998|Usmani, ''Introduction to Islamic Finance'', 1998]]: p.167</ref> that its rules provide weaker legal standing and consumer protection<ref name="Ahmad-2010-210">{{cite book|last1=Ahmad|first1=Abu Umar Faruq |title=Theory and Practice of Modern Islamic Finance: The Case Analysis from Australia|date=2010 |publisher=Universal-Publishers |page=210 |url=https://books.google.com/books?id=wRlI0nJp5mEC&q=Ijara+wa+Iqtina&pg=PA209 |access-date=4 October 2017 |isbn=9781599425177}}</ref> and less flexibility{{sfn|Visser|2009|p={{page needed|date=September 2022}}}}{{sfn|Khan|2013|p=349}} than conventional [[mortgage loan]] or [[car finance]], as well as higher costs.<ref name="MeGIFLEP2006:14">[[Murabaha#MeGIFLEP2006|El-Gamal, ''Islamic Finance'', 2006]]: p.14</ref>