LEASING ENDING WITH OWNERSHIP AND LEADERSHIP BOND

Leasing (ijdrah) is a contract with the aim of benefiting the usufruct by the lessee, such as sewing clothes, constructing a wall, carrying a passenger to his destination, or offering residency in a house for a certain period as mentioned in the contract. At the end, the leasing goods will be returned to the owner. These economic activities has been expanded by Islamic institutions and been benefited by them as an instrument in developing the economy, whereby the traders who are involved in the economic activity can influence the economic development, yet they are in need of financing to achieve their business activities. A loan without interest is nearly impossible, but individuals who need cash will be treated fairly and the intention of a person who helps them is reward from Allah. To achieve this goal, many economic instruments have been invented with the supervision by the Shari‘ah advisors in Islamic institutions. One of these instruments is al-ijdrah al-muntahiyah bil-tamlik (leasing ending with ownership)