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Islamic Finance


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Hikr


Arabic (حكر) for a lease contract (ijarah) that is concluded for the purpose of keeping an endowed land (ardh mawqufah) at the disposal of the tenant as long as the normal rate of rent is paid against using such a land (for building or cultivation, etc).

In addition to the above form, hikr comes in other forms including that when the endowed land is utilized by way of lease for an unspecified period of time. As such, the tenant has the right of use without hindrance. Hikr may also take the form of leasing an endowed land for a specific period of time, so that the tenant uses it for building or cultivation with the permission of the waqif.

Hikr, by nature, is a financial right/ haq mali (and hence it cannot be inherited). It is used as a device to replace istibdal (of the endowed land) in case the use of the latter is restricted or not permitted.

Hikr is also known as tahkir.


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