ijarah

Simplified Shariah Structures Guide: Ijarah

In this simple guide, we will look at the following: What is Ijarah? Key requirements of Ijarah Applications of Ijarah 1. What is Ijarah? Ijarah is simply a Shariah lease. Ijarah is almost identical to an operating lease which involves the owner of the asset transferring the Manfa’ah (utility) of the asset to another person […]
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Is Zakat due on Sukuk al-Ijarah investments?

Question: Is Zakat due on Sukuk al-Ijarah investments? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Ijarah Sukuk is based on an underlying Ijarah structure. Certificates are issued by a special purpose vehicle that entitles the holders to an ownership interest and a right to a return in proportion to […]
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