This financing is based on the principle of ljarah. ljarah is a contract where the benefits/use of an asset is transferred by the owner (lessor) to the lessee at an agreed price/rental amount for an agreed period of time or Ijarah period. During the period the Ownership of the assets remains with FNBM.

The rules of Ijarah, in the sense of leasing, are very much analogous to the rules of sale, because in both cases something is transferred to another person for a valuable consideration. The only difference between Ijarah and sale is that in the latter case the corpus of the property is transferred to the purchaser, while in the case of Ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee. We offer Ijarah on Vehicles, Plant & Machinery, Equipments and other similar assets.