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.
Ujrah is the consideration paid for a service or for the use of an asset: a wage, a fee or a rent. It is the price component of ijarah and of paid agency under wakalah. Islamic finance generally requires the fee to be known and agreed when the contract is made, which is why fee-based products state their charges up front rather than leaving them to depend on an uncertain outcome.
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.WakalahAgency: one party appoints another to act on its behalf, with or without a fee.Ju'alahA reward contract: a fee is promised for achieving a specified result and is paid only when the result is delivered.Ijarah of servicesThe service side of ijarah: hiring a person's work or a defined service for a specified period and fee.