Ijarah of services
The service side of ijarah: hiring a person's work or a defined service for a specified period and fee.
Ijarah covers services as well as assets. Bank Negara Malaysia's glossary defines ijarah to include a contract for hiring the services of a person for a specified period in exchange for a specified consideration. Classical law calls this the hiring of persons, and it is the basis for service-based Islamic products, such as financing for education or medical services, where the provider sells a defined service rather than an asset.
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.Ujrah (fee)A fee, wage or rent paid for a service, an agency or the use of an asset; the price side of ijarah and paid wakalah.Ju'alahA reward contract: a fee is promised for achieving a specified result and is paid only when the result is delivered.