Also known as operating ijarah (In Arabic إجارة تشغيلية); by definition it is an ijarah contract that doesn’t end up with the transfer of ownership of leased properties to the lessee. In other words, the owner of the property gives possession thereof to the lessee, whilst retaining its ownership. The lessee has only the right to use the property in return for rental. At maturity, the lessor takes back the property from the lessee, and the ijarah contract is terminated. This type of ijarah is particularly suitable for expensive, long-productive-life assets that require large layout in order to possess. Examples include ships, aircrafts, fleets of transportation vehicles, etc.

In view of its operating nature, this form of ijarah is seldom used by Islamic banks, as they don’t usually have the specialized capabilities to operate such assets, not to mention handling all matters related to obsolesce, diminishing demand, changing market needs, etc.