Ijarah Muntahia Bittamleek in Islamic Banking: A Critical Review of Its Shari‘ah Validity and Practical Applications in the Light of the Qur’an and Sunnah

Authors

  • Syed Zia Ud Din PHD schooler, international Islamic University Malaysia
  • Dr. Mohamamd Mohiuddin Assistant Professor Department of Quran and Sunnah Studies (RKQS) International Islamic University Malaysia
  • Sadheer Khan (Mufti Muhammad Hassan) Phd Scholar, International Islamic University Malaysia (ISTAC-IIUM)

Abstract

Ijarah Muntahia Bittamleek is a widely used financing technique in Islamic banking, especially for vehicle, housing, and asset financing. This article presents a comprehensive analysis of its Sharī‘ah foundations by examining Qur’ānic evidence, Prophetic traditions, classical jurisprudence, contemporary fiqh resolutions, and the practical models used by Islamic banks in Pakistan. The study concludes that the structure of Ijarah Muntahia Bittamleek is fundamentally permissible and firmly rooted in Islamic legal principles, provided that the contracts of sale and lease remain separate, ownership and risk remain with the lessor, and all maintenance obligations are fulfilled according to Sharī‘ah requirements. The paper also critically evaluates existing practices, identifies weaknesses, and offers practical recommendations for improvement within modern Islamic financial institutions

Keywords: Ijarah۔Ijarah Muntahia Bittamleek-Islamic Finance-Islamic Banking-Fiqh al-Muamalat

https://doi.org/10.5281/zenodo.18113821

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Published

2025-12-31

How to Cite

Syed Zia Ud Din, Dr. Mohamamd Mohiuddin, & Sadheer Khan (Mufti Muhammad Hassan). (2025). Ijarah Muntahia Bittamleek in Islamic Banking: A Critical Review of Its Shari‘ah Validity and Practical Applications in the Light of the Qur’an and Sunnah. Journal of Religion and Society, 4(02), 874–885. Retrieved from https://islamicreligious.com/index.php/Journal/article/view/366

Issue

Vol. 4 No. 02 (2025): Journal of Religion and Society

Section

Articles