---
title: "What is Ijarah thumma al-bai (AITAB, lease then sale)? | IslamicOpenFinance™"
description: "A lease followed by a separate sale of the asset to the lessee at the end, used in Malaysia for vehicle financing."
url: https://islamicopenfinance.com/glossary/ijarah-thumma-al-bai/
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 thumma al-bai (AITAB, lease then sale)

A lease followed by a separate sale of the asset to the lessee at the end, used in Malaysia for vehicle financing.

Ijarah thumma al-bai is a lease followed by a sale: the financier leases an asset to the customer for a period and, at the end, the asset may be sold to the customer under a separate sale contract. Bank Negara Malaysia's compilation of Shariah Advisory Council resolutions describes its use in vehicle financing, with the customer first appointed as the bank's agent to buy the vehicle, then leasing it, and having the option to buy it when the lease ends. It is close to ijarah muntahia bittamleek, and the same separation between the lease and the transfer of ownership applies.

## Sources

- [Bank Negara Malaysia, Shariah Resolutions in Islamic Finance, second edition, 2010: application of al-ijarah thumma al-bai\` in vehicle financing](https://www.bnm.gov.my/documents/20124/9198675/shariah_resolutions_2nd_edition_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/) [**Ijarah muntahia bittamleek** A lease that ends with ownership passing to the lessee, through a separate sale or gift promised by the lessor.](https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek/) [**Wakalah** Agency: one party appoints another to act on its behalf, with or without a fee.](https://islamicopenfinance.com/glossary/wakalah/) [**Hibah** A gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.](https://islamicopenfinance.com/glossary/hibah/)

**Lease, agency and service contracts**

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

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