All praise is due to Allah, the Lord of the Worlds. The ultimate outcome is for the righteous, and there is no enmity except against the wrongdoers. Peace and blessings be upon the trustworthy Messenger, Muḥammad ibn ʿAbdillāh, who was sent as a mercy to the worlds, and upon his pure family, noble companions, and all those who follow them with righteousness until the Day of Judgement.
Ijārah (leasing) is classified among the nominate contracts (ʿuqūd musammā) that fulfil a wide range of people’s needs. For the lessee, it serves as a means of satisfying daily needs— particularly when he cannot afford to purchase the leased asset or does not desire ownership for any reason. For the lessor, ijārah constitutes an investment opportunity and a means of generating returns.
In modern times, the ijārah contract has evolved, giving rise to a financing model known as ijārah muntahiyah bi-tamlīk (lease-to-own), which combines leasing with eventual ownership. This study aims to examine several legal and jurisprudential issues related to this form of ijārah. The specific issues addressed include:
1. The legal characterisation (takyīf fiqhī) of rental payments that exceed the market rate,
2. The lessee’s liability for partial or total loss of the leased asset,
3. The transfer of essential maintenance and insurance costs to the lessee, and
4. The linkage of rental payments to an index in long-term leasing agreements.
Indeed, success lies only with Allah, the Almighty. We ask Him to make this work sincerely dedicated to Him.
