Under Sharia, Ijara and Murabaha are considered contracts of exchange (i.e. exchange of right to occupy/use asset for payment of rent/lease or exchange of asset for deferred sale price) and not contracts of participation (i.e. where the parties share the profit or loss in a venture). As such, Hejaz is not entitled to share the profit arising from the sale of the property during the Ijara term and is similarly not required to share the loss.
Updated on May 14, 2022