Ijar

Ijar is a term that can refer to several different concepts, depending on the context. In the realm of Islamic jurisprudence, ijar is a contract of lease or hire, often used for tangible assets like property or vehicles. This type of contract specifies the duration of the lease, the rent to be paid, and the responsibilities of both the lessor and the lessee. It is a fundamental concept in Islamic finance, enabling individuals and businesses to utilize assets without direct ownership.

In a broader, more colloquial sense, ijar can also refer to a specific type of garment. Historically, in some cultures, ijar has denoted a type of loose-fitting trousers or a sarong-like garment worn around the waist. The exact form and usage can vary significantly based on region and time period. These garments were typically worn by both men and women, providing comfort and modesty.

More recently, the term ijar has gained traction in the context of a specific type of loan in Islamic finance known as ijarah. This is a leasing-based financing method where the lessor buys an asset and leases it to the lessee for a specified period and at a predetermined rental amount. Upon expiry of the lease term, ownership of the asset may transfer to the lessee. This structure aims to adhere to Islamic principles by avoiding interest (riba).