Islamic Finance
Types of Mudaraba
August 29, 2021
Investment Banking
DTD
August 29, 2021

A type of ijarah contract in which the underlying usufruct (manfa’ah) is a person’s work, effort, expertise, etc. According to the majority of fuqaha (jumhur), the contract of ijarah has nothing to do with the person himself/ herself, but rather with his/ her labor. However, some fuqaha of Shafi’e school of thought (mazhab) opined that the underlying of ijarah is the worker himself/ herself since usufruct doesn’t exist at the time of contracting. Ibn Taymiah and Ibn al-Qayim were of the opinion that such type of ijarah is particularly fit for renewable sources of labor/ service such as the milk of a wet nurse.

Ijarah ala al-a’amal is an Arabic term (إجارة على الأعمال) that translates as hire of work power.

It is also known as ijarah ala al-ashkhas.

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