Sub-lease (ijarah from a lessee)
A lease granted by a lessee to a third party over the usufruct it holds, unless the owner has prohibited it.
A sub-lease is a lease that a lessee grants to a third party over the right of use it holds under its own lease. AAOIFI's ijarah standard allows a lessee to sub-lease to someone other than the owner for the same, a lower or a higher rental, paid now or later, unless the owner has stipulated that the lessee may not sublet, or may do so only with approval. This is the basis on which a bank can lease an asset it has itself leased, so long as its head lease permits sub-letting.
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.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.Sukuk al-ijarahSukuk whose holders own leased assets and receive the rent paid by the lessee as their return.Ijarah of servicesThe service side of ijarah: hiring a person's work or a defined service for a specified period and fee.