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Islamic Finance




Bay al-Istijrar


In Islamic finance, it is a contract (of bay’) whereby a supplier agrees to deliver a specific commodity/ item to a customer, on an ongoing basis (weekly, monthly, etc), at an agreed price and method of payment. This type of contract is typically resorted to in cases where different quantities/ units are repetitively purchased from a single seller over a period of time. Sometimes, it also refers to transactions in which the seller delivers varying consignments in different installments to consummate the full purchase. The terms and conditions of bay’ al-istijrar may be similar to any normal cash or credit sale.

Bay’ al-istijrar is an Arabic term (بيع الاستجرار) that translates as “recurring sale” or “supply contract”.



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