Ijarah mawsufah fi al-dhimmah (forward lease)
A forward lease of an asset described by specifications, with use starting on a future date once it is delivered.
Ijarah mawsufah fi al-dhimmah is a lease of an asset described by agreed specifications rather than an identified existing asset, with the usufruct delivered on a future date. Bank Negara Malaysia defines it as an ijarah that transfers ownership of a usufruct for a specified future duration, based on specifications agreed at inception. It is used to finance assets under construction, such as homes and infrastructure, often alongside istisna.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
IjarahA lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period.IstisnaA contract to manufacture or build a specified asset for delivery on a set date, with the price paid in stages or as a lump sum.Ijarah muntahia bittamleekA lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor.