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Islamic Finance




Haqq al-Ijaratain


In the context of waqf (Islamic endowment), it refers to a specific type of hikr or hukr (حكر). It constitutes a primary right in rem that is classified under the broader class of ownership rights (haqq al-mulkiyyah). It gives its holder the right to use an endowed (mawqoof) plot of land in need of construction in return for a lump sum amount equal to the value of the constructed buildings in addition to an annual rent estimated at ajr al-mithl (equivalent market rent). The waqf will use the lump sum amount for the repair and restoration of the waqf building. The building at all times belong to the waqf, but the lessee has the right to use it as long as he pays the annual rent. After his demise, the waqf property passes on to his heirs. Otherwise, it will be redeemed by the waqf.

Notwithstanding, haqq al-ijaratain differs from hikr or hukr in that the waqf, in the case of hikr, is at liberty to use the lump sum amount as desired.

Haqq al-ijaratain (حق الإجارتين) is Arabic for dual-lease right.



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