Answered by Shaykh Muhammad ibn Adam al-Kawthari
Do you know if the ijarah scheme offered by the Kuwaiti Bank in the UK is halal. I would appreciate if you could highlight some of the key issues with ijarah that can make the contract haram or halal.
In the name of Allah, Most Compassionate, Most Merciful,
The Kuwaiti bank have a unit called Islamic Investment Bank Unit (IIBU), who offer interest free mortgages for the purchase of homes. The plan is known as the Manzil plan, and is supervised by scholars amongst others. Shaykh Taqi Usmani and Shaykh Nizam al-Ya’qubi are on the Shari’ah advisory board.
The Murabaha and Ijarah plans offered by this financial institution is generally Shari’ah compliant. However, one must check with a religious scholar before entering into an agreement.
As far as the key issues concerning the Ijarah plan, there was a recent post which discussed in detail the essential parts of this plan. You may refer to it.
And Allah knows best
Muhammad ibn Adam al-Kawthari, UK