Ijarah (Islamic Leasing) is the most common financing instrument used by Islamic banks all over the world. IBA is currently offering Plant, Machinery and vehicle financing on the basis of Ijarah. Ijarah is a contract whereby Bank transfers right to use of Ijarah Asset to the customer for agreed period with agreed rentals. All the assets will be leased out on Ijarah basis which are Shari’ah Compliant. Following are the common assets for Ijarah financing.


  • Vehicles
  • Plant and Machinery
  • Fixed Assets

Sub Products Under Ijarah

  1. Ijarah (“Operating Lease”)
  2. Ijarah Wa Iqtin'a (“Hire Purchase”) / [Diminishing Musharakah]
  3. Ijarah Muntahia Bittamleek (“Finance Lease”)
  4. Sale Lease Back (SLB Ijarah)