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Islamic Finance




Mawsufah fi al-Zhimmah


Transliteration for Arabic term “موصوفة في الذمة”; a description for a clearly defined and specified subject matter of a contract that will be delivered at a future date in accordance with the set specifics/ specifications (agreed at the inception of the contract).  For example, in ijarat al-khadamat (service lease), the ownership of a mawsufah fi al-zhimmah usufruct/ manfaah (of a service or a bundle of services) is transferred by a service provider to the “lessee” (user) at a future date or over a specified period in exchange for a preset consideration (iwad). Whether transacted with a service provider or through a third party, the service provider is under obligation to render the subject-matter service at the specified date.

This may also refer to a contract that involves hiring the services of a person (natural or legal) for a specified period in exchange for a preset or pre-agreed consideration.



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