Ijarah is commonly used for long and medium term fixed asset financing, project financing, plant and machinery, equipments, vehicles, etc.
Ijarah (Lease) is an arrangement/contract whereby one party (Lessor) agrees to transfer the usufruct (benefit of use) of an asset to another party (Lessee) for an agreed period at an agreed consideration. Ijarah can be carried out for only those assets which are not consumed with their usage.
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