An ijarah in which an asset is leased for a long period of time in a way that ujrah (compensation) is fixed as a token amount in the first years of ijarah period, while the bulk of ujrah is scheduled to be paid in the last year. The term “ijarah tawilah” (the Arabic transliteration of long-term lease) was coined and introduced by Hanafis, though the majority of jurists consider this type of ijarah shari’a-compliant.

According to Hanafis, long-term lease is not permissible for awqaf (endowments) with maturities of more than three years. However, Malikis deemed it lawful for four years provided the leased asset is a plot of land. For Shafis and Hanbalis, the period of waqf ijarah need not be limited if there is reasonable degree of the safety of the waqf property (ain) and its usufruct (manfa’ah).