Ijarah

Ijarah is an agreement whereby Badr leases moveable or immovable property to the Customer with an option to purchase the item at the end of the lease period at a pre -agreed price.  Ijarah can also be a contract involving Sale of Usufructs of tangible property (land, real estate, equipment etc). Ijarahs can be either Operating Ijarah (operating lease) or Ijarah wa Iqtina (lease with a purchase option/finance lease)

Areas of Application:

The Operating Lease transactions are suitable for expensive assets such as ships, aircraft, and heavy-duty industrial and agricultural equipment. The Finance Lease is widely used in real estate, vehicle, machinery, project, computers, equipment financing etc. that require medium to long term financing