 In this module, we would look at another application of Ijara mode of financing. But before that, let us go back and look at Ijara. What is Ijara? Ijara is actually one of the simplest contracts in Islamic law and actually this contract is very simple in a conventional framework as well. In its very simple form, what is Ijara? Ijara is that a person gives something to someone on rent and the rent is taken. And of course, there are very well defined rules governing this arrangement. In an Islamic contract, it is important that the use of the asset remains career-confined. It is not a requirement, for example, that the less sore and the less tea should be career-confined or should be even Muslim. What do I mean by that? It is possible for a Muslim to rent a house from a non-Muslim and vice versa. It does not mean that transacting parties in the case of Ijara should be Muslim. Similarly, it is permissible for a Muslim owner to rent a building to a western corporation and vice versa. It is possible and permissible for a Muslim to rent a building from a non-Muslim or an un-Islamic corporation. However, the question should be exercised when selecting a part. In case of someone if I own a property and if a bank comes to me, a conventional interest based bank and asked me to rent my commercial property to the bank so that the bank should have a branch in it. Because that bank is an interest based bank, the activity to be undertaken in that building is not career-confined. Hence, it is not permissible for me to rent my house, my commercial property or my land to someone who is going to do a career-repugnant activity over there. So this was the basic Ijara contract which was used centuries ago and its usage remained constant over time. In the context of Islamic banking and finance, Ijara has emerged as an important Islamic mode of finance. It is not just this simple Ijara now, rather as we previously looked at, it has variants like Ijara, Muntahiya, Bitamleek and we have others like Ijara, Waikhtina which is Ijara with a component of a gift in it. In case of Ijara, Muntahiya, Bitamleek, the Ijara contract finishes with the ownership of the asset going to the Lassi and there are well-defined rules and processes governing this kind of activity and this kind of mode of finance. In case of the Ijara, Waikhtina, there is a slightly different arrangement. Ijara, Muntahiya, Bitamleek actually becomes a basis for higher purchase mode of financing and it can be used for financing any item ranging from household goods to heavy industrial equipment and even aircraft. Now I started with this thing that there are no restrictions on the contracting parties and there is one restriction at least on the asset itself that its usage should be Sharia compliant. Another restriction is that asset itself should be Sharia compliant. What do I mean by that? If someone has got a brewery which produces alcohol, that brewery cannot be leased out or leased in a Sharia frame because that asset itself is not Sharia compliant. In case of Ijara, Muntahiya, Bitamleek all general kind of assets like machinery, household items, home financing, etc. they can be financed on the basis of Ijara, Muntahiya, Bitamleek or Ijara, Waikhtina. Ijara as we previously mentioned as well, this is a very popular to cook structure. In case of UAE, a lot of aircraft financing actually take place with the help of Sukupijar or Ijara Sukup. Ijara Waikhtina, this is slightly different from Ijara, Muntahiya, Bitamleek because in this case the leased asset actually is gifted by the less store to the less sea at the end of the lease period. Otherwise, all other technicality and processes of Ijara, Muntahiya, Bitamleek and Ijara, Waikhtina are almost the same. Let us look at Ijara, Muntahiya, Bitamleek with the help of a diagram. So we have a less sea here, finance tree, the party looking for finance and we have less store of finance here. They have this contract in case of Ijara, Muntahiya, Bitamleek which has two aspects. It is a lease contract. This is a simple Ijara contract with the provision of two additional undertakings. One is a purchase undertaking, the other one is a sale undertaking. Sale undertaking is taken by, it is undertaken by the less store and it says it is a one page document which says that once the less sea has fulfilled all the obligations of this lease agreement by the end of the lease period, the less store undertake to sell the leased asset to the less sea for a price. So this is called a sale undertake. A purchase undertaking is actually by the less sea. It says that during the lease period, if I happen to breach any of the terms and conditions of this lease agreement, I undertake to buy the leased asset from the less store for a price which would be determined by the amount outstanding pursuant to this Ijara contract. So this is what we mean by to undertake. So at the end of the lease period, when the less sea has fulfilled all the obligations of the lease agreement i.e. it has paid the rentals and it has been a good tenant, then at the end the less store would sell the leased asset to the less sea for a nominal price. That is called Ijara Muntahia Bitamli i.e. an Ijara that ends with ownership of the less sea. In case of Ijara Wa Ikhtina, the structure is more or less the same. However, in case of Ijara Wa Ikhtina, the less store promises to give the leased asset to the less sea if the less sea has been a good tenant during the term of the Ijara agreement. So apart from this, there are not very many major differences between Ijara Muntahia Bitamli and Ijara Wa Ikhtina. The use of Ijara Muntahia Bitamli or Ijara Wa Ikhtina, it depends on certain legal jurisdiction. In certain legal jurisdiction, it is safer to use Ijara Muntahia Bitamli rather than using Ijara Wa Ikhtina. For example, in case of Saudi Arabia, Ijara Muntahia Bitamli is preferred over Ijara Wa Ikhtina because there is one career opinion which suggests that once someone has promised, once someone has undertaken to give something to someone else and that person has taken possession of that something, then the gift would have taken place automatically to avoid that kind of situation in the jurisdictions like Saudi Arabia where the court decisions are made by the judges without any precedent i.e. if a case goes to a court in Madina, the judge over there may take a completely independent decision from someone else, another judge who took a decision on a similar matter in Riyadh for example. So there is a lot of legal uncertainty in certain jurisdictions because of which the choice of Ijara Muntahia Bitamli or Ijara Wa Ikhtina actually reflects the risks inherent in the two process.