Развитие сотрудничества в области туризма между странами

Main differences between ijara and a conventional lease

Factor	Conventional lease	Ijara
Religious requirements	Does not follow any religious rulings. Based on the finance and banking laws of the country.	As all Islamic finance products, based on the rulings of Shariah law
Signing of lease contract	Lease agreement can be signed by the lessee and lessor even before the asset has been acquired by the lessor	Lease agreement can only be signed by the two parties after the Ijara asset has come into existence, is owned by the lessor and is in physical or constructive possession of the lessor
Type	There are two types of contracts – financial lease and operational lease. Both contain conditions that contravene Islamic Shariah law, especially interest	The Ijara can also be of two main types – regular Ijara and Ijara wa Iqtina – and both are designed to ensure they do not contain any condition that is against Shariah law

Main differences between ijara and a conventional lease

Factor	Conventional lease	Ijara
Purchase of the lease asset	The leased asset for a financial lease is automatically transferred to the ownership of the customer upon completion of the lease period	No such automatic transfer of ownership. A separate sale agreement needs to be executed between the lessor and the lessee to finalize the purchase of the asset by the lessee
Rights and liabilities of lessor and lessee	The client is responsible for all kinds of loss or damage to the leased asset, irrespective of the circumstances. In case compensation is not provided by the insurance company, the client is liable to the full amount or to pay the balance after insurance compensation	The lessor bears all risks related to the ownership of the asset and as such bears all loss or damage beyond what is compensated by the insurance company. The lessee only bears usage-related risks and any dues for negligence or mismanagement