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Ijarah is a type of Islamic financing that is based on the principle of renting or leasing. Under an Ijarah contract, the lender provides the borrower with the use of an asset, such as a car or a piece of equipment, for a specified period of time. In return, the borrower agrees to make regular payments to the lender. The key difference between Ijarah and conventional finance is that Ijarah contracts are structured in accordance with Shariah law. As such, they are often used to finance Islamic business ventures. While Ijarah can be used to finance a wide variety of assets, it is most commonly used to finance the purchase of homes and businesses.

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