This is a contract sale between the bank and its client for the sale of goods at a price which includes a profit margin pre-agreed by both parties.
As a financing technique, it involves the purchase of goods by the bank as requested by its client.
Lease Ending in Ownership
This is applied to real estates, machinery and others. These are purchased then rented for a certain period in a way that enables lessee to own them at the end of the lease period according to the regulations and Sharia arrangements in this regard, and as per the stated contract.