"Ijarah" is a term of Islamic Fiqh. Lexically, it means 'to give something on rent'. It is a Shari’a-compliant alternative to conventional leasing where Dhofar Islamic acts as a Lessor and the customer acts as a Lessee. The Lessor (Dhofar Islamic) allows the Lessee (customer) to use the asset owned by the Lessor in return for a monthly rent. Using Ijarah as a financing instrument, Dhofar Islamic purchases the item required for leasing and receives title of ownership from the vendor. Dhofar Islamic leases the asset to the customer after execution of lease agreement. The customer makes periodic rental payments as per the contract. At the end of the lease agreement, Dhofar Islamic transfers the ownership to the customer through a sale transaction.
Why Islamic Banking?
- Uncompromising service.
- Unwavering values.
Built for today
Modern Islamic banking represents the collective effort over several decades of leading bankers, economists and scholars from the Muslim world. It is a financial system in line with the principles of Shariah that also meets the requirements of individuals and organizations in a fast-paced world.
Built to endure
Shariah-compliant banking promotes prudent sharing of both risks and rewards between the provider of capital and the user of funds. This approach minimizes the incentive for excessively risk-taking, and maximizes productivity and sustainable profitability for all stakeholders.
Islamic banking today has proven to offer an ethical and stable base for rapid growth, despite systemic challenges in the global economy and financial industry.