Ijarah Financing

What does the term "Ijarah" literally mean?

• To sell an asset

• To give something on rent

• To transfer ownership

• To provide a loan

In Ijarah financing, who is the lessor?

• The customer

• The bank

• The supplier

• The legal advisor

What is the core principle of Ijarah financing?

• The immediate transfer of ownership

• The transfer of usufruct in exchange for rent

• The sale of assets for profit

• The provision of interest-based loans

Which of the following is NOT a type of Ijarah contract?

• Operating ijarah

• Ijarah Thumma Al-Bay (AITAB)

• Ijarah Muntahia Bittamleek

• Murabaha

Which type of Ijarah contract does NOT transfer ownership of the asset to the lessee?

• Operating Ijarah

• Ijarah Muntahia Bittamleek

• AITAB

• All of the above

What is a common use for Ijarah Muntahia Bittamleek contracts?

• Financing of airplanes

• Financing of vehicles

• Financing of industrial equipment

• Financing of agricultural machinery

In Ijarah Muntahia Bittamleek, how can ownership be transferred at the end of the lease?

• By way of gift

• Token price

• Equivalent price

• All of the above

What does AITAB stand for?

• Ijarah Thumma Al-Bay

• Asset Investment and Trading

• Asset Transfer and Benefit

• Accounting for Islamic Transactions and Banking

What does "substance over form" mean in the context of Ijarah accounting?

• Legal ownership is the primary consideration

• Both legal form and economic substance are equally important

• Economic substance is more important than legal form

• Only the legal form is considered in accounting

According to the sources, who bears the costs of repairs and maintenance for an asset under Ijarah?

• The lessor

• Depends on the asset

• The lessee

• Both the lessor and the lessee