Ijara under Turkish law: Bridging Islamic finance and legal frameworks

The rise in development and prosperity levels in regions with significant Muslim populations, coupled with the growing preference to avoid interest in compliance with Sharia principles, have accelerated the demand for alternatives to conventional interest-based financial products.

In this context, the search for interest-free financial alternatives has led to the emergence of financial institutions operating in compliance with Islamic law, contributing to the widespread adoption of these alternatives, particularly in Islamic countries but also across in Europe, the U.S.A. and East Asia. Within this context, Ijara (leasing) has emerged as a pivotal instrument in interest-free banking. In this article, we examine how Ijaras are being structured and utilized in Türkiye.

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