Al Ijarah (Leasing)

It is a contract granting the right to use a specific asset for a specified period in exchange for a specified rent; that is, the owner of the asset allows the lessee to use the asset in exchange for agreed-upon rent payments, while ownership of the asset remains with the lessor throughout the term of the contract. It requires the existence of a tangible asset (real estate, a car, an aircraft, production equipment, etc. etc.) and that the rent and term are specified. It is divided into an operating lease and a lease-to-own arrangement, in which ownership of the leased asset transfers to the lessor at the end of the term through sale or gift in accordance with Sharia regulations.

Sectors where Ijarah is applicable

Among the most common areas where the Ijara structure is applied are:

  • Real estate financing.
  • Equipment and machinery.
  • Automobiles.
  • Aviation and transportation.
  • Student seats.
  • Islamic sukuk.
Eligibility Requirements

Steps to Ijarah Financing

  • The customer submits an application to the bank stating the specifications of the commodity he wants.
  • The bank studies the process, and ascertains its economic feasibility. It determines the conditions and guarantees for its ratification.
  • The bank owns the commodity or service that is the subject of the lease.
  • Sign contracts and take guarantees.

Frequently Asked Questions

Answers to your questions

Financing compliant with the provisions of Islamic Sharia, in accordance with the policies and publications issued by the Central Bank of Sudan and Al Baraka Banking Group, Sharia supervisory boards, government agencies and regulatory bodies such as (agricultural & industrial & export & import & service & mining & medical & real estate financing – as permitted by the Central Bank of Sudan’s policy & transportation – as permitted by the Central Bank of Sudan’s financing policy, and other financing products – electrical appliances, furniture and tools & solar energy & spare parts and maintenance of private and commercial vehicles & medical devices and equipment for doctors, medical laboratories and clinics, dispensaries and health centers)

Subject to bank policies and Central Bank regulations, including creditworthiness assessment.

Based on the financing amount and duration after application review.

Through bank branches or digital channels.

Through the branch or customer service.