The term Ijara (leasing) in Arabic means to give something on rent. Ijara contract is an agreement wherein a lessor leases a physical asset or property to a lessee who receives the benefits associated with ownership of the asset against payment of predetermined rentals for a known period called the Ijara period.

The contract of Ijara financing is used as a mode of financing to provide the customers with short to medium-term financing to lease such items which may include real estate, buildings, equipment, machinery, computers, motor vehicles, and other acceptable (not be haram or forbidden assets).