Arabic (إعارة) for a special case of ijarah where the usufruct of subject-matter (property) is transferred by the owner to someone else in return for no consideration (i’wadh/ countervalue/ rental/ ujrah). Al-musta’eer (borrower) has the right to use the object/ property or to allow others to do so (sub-ei’arah), but he can’t do so on the basis of ijarah, i.e., in return for ujrah, because ei’arah contract is, by nature, non-binding, whist ijarah is a binding contract. However, some schools of thought (mathahib), such as shafi’ee and hanbali, don’t approve sub-ei’arah.
Islamic Finance
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