---
title: "What is Ijarah muntahia bittamleek? | IslamicOpenFinance™"
description: "A lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor."
url: https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Lease, agency and service contracts](https://islamicopenfinance.com/glossary/#lease)

Lease, agency and service contracts

# Ijarah muntahia bittamleek

A lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor.

Ijarah muntahia bittamleek is a lease combined with a separate promise from the lessor that the lessee will come to own the asset at the end of the lease. Under the IFSB definition, ownership can pass by sale for a token amount, an agreed price or market value, or by gift, through a promise to sell, a promise to donate or a conditional gift contract. The transfer is a separate act from the lease, which keeps the lease and the sale from being made conditional on each other.

## Sources

- [IFSB-23 Revised Capital Adequacy Standard (Banking Segment), 2021: Definitions, Ijarah muntahiyah bittamlik](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-23_En.pdf)

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

[**Ijarah** A lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period.](https://islamicopenfinance.com/glossary/ijarah/) [**Wa'd (promise)** A unilateral promise to do something in the future; it can be made binding and is used in hedging, sukuk and lease-to-own deals.](https://islamicopenfinance.com/glossary/wad/) [**Hibah** A gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.](https://islamicopenfinance.com/glossary/hibah/) [**Ijarah accounting** How lessors and lessees report ijarah contracts, including leases ending in ownership, under AAOIFI's ijarah standard.](https://islamicopenfinance.com/glossary/ijarah-accounting/)

**Lease, agency and service contracts**

1. [Ijarah](https://islamicopenfinance.com/glossary/ijarah/)
2. [Wakalah](https://islamicopenfinance.com/glossary/wakalah/)
3. [Kafalah](https://islamicopenfinance.com/glossary/kafalah/)
4. [Hawalah](https://islamicopenfinance.com/glossary/hawalah/)
5. [Ju'alah](https://islamicopenfinance.com/glossary/jualah/)
6. [Rahn](https://islamicopenfinance.com/glossary/rahn/)
7. [Ijarah mawsufah fi al-dhimmah (forward lease)](https://islamicopenfinance.com/glossary/ijarah-mawsufah-fi-dhimmah/)
8. [Ijarah of services](https://islamicopenfinance.com/glossary/ijarah-of-services/)

[All 221 terms](https://islamicopenfinance.com/glossary/)