An Arabic term (عقود الامتياز) that denotes concession contracts; by definition, a contract of concession is an authorization whereby a party grants another party the right of utilizing, constructing or managing a particular project for a certain consideration in return.
The two parties agree on the consideration at the time of contracting. Shari’a permits concession contracts unless they include an element of violation such as gharar, riba, etc. As such, it is permissible to offer concession rights against preset fees or any consideration agreed upon in the contract. Concession contracts are especially used to facilitate the realization of public interest (al-maslaha al-a’amah) or the interests of contracting parties. Offering concession rights should be based on just treatment, equality of opportunities, and realization of public interest.
