Category: Business Matters
Fatwa#: 40902
Asked Country: Bangladesh

Answered Date: Oct 21,2018

Title: Ijarah contract


 Request to please provide opinion inregards to Shariah Compliance of MCCA & Amanah Islamic Finance

 Assalam O Alaikum Wa Rahmat Ul lahe wa barakatuhu,


Dear and respected Mufti Sahab,


Respectable brother  I live in Australia. I am trying to get some authentic information about some of the Islamic Home Finance Institutions here.One of the most commonly used one is MCCA ( which works on the basis of Ijarah Muntahia Bittamleek and the other one is Amanah finance ( which works on Ijarah and Wakalah agreements.


I have attached MCCA contract which has been issued to one of my friends. In the contract they talk about Ijaraj on pages 22 onward and in the general terms and conditions document they are talking about Insurance on pages 15 and 16. My concern is why is MCCA not paying the council rates and for insurance of the property if they are the owners.



There is another islamic finance with the name of Amanah finance ( which work on the basis of Ijarah and Wakalah contract they also need the customer too purchase the insurance but on their website they have mentioned the need for it as follow:


"It is the practice in Australia for Financiers to require that the financed property be insured. These requirements exist across the world including, in Islamic banks such as at Meezan Bank in Pakistan where Takaful (an Islamically permissible form of insurance) is used.


Takaful is not available in Australia. We overcome this problem by including a term in the Wakalah Agreement which states that the Customer is purchasing the insurance on behalf of the Financier, and the Financier has adjusted the payments to include the insurance premium. This acknowledgement in relation to premium payment is expressly recognised and evidenced as a key term of the Wakalah.


From a Shariah perspective, the Amanah contracts have been drafted such that the Financier is considered as the one purchasing, and enjoying the benefit of the insurance. In these circumstances, the insurance is permissible under Sharia

 Dear and respected Mufti can I please request you to provide your opinion as to weather MCCA or Amanah both or none or anyone of them is Shariah Compliant or not.


May Allah bless you and your family, Ameen


Kindest regards


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Respected Brother in Islam

We have perused the attached documents.

According to the documents in reference, it is our submission that the Ijarah Muntahia Bitamleek of MCCA does not reflect a proper Shariah Compliant Ijarah. [1]

If we are provided with the contract details of Amanah Finance, we will advise accordingly. You may forward the documents to [The website is the official website of Mufti Faizal Riza Sahib, who trained under Mufti Ebrahim Desai Sahib and is currently based in Melbourne].

And Allah Ta’āla Knows Best

Anas Sharieff Qasmi.

Student Darul Iftaa

Hyderabad, India.

Checked and Approved by,
Mufti Ebrahim Desai


[1][An introduction to Islamic finance]

Actual secretarial expenses…pg-129

Penalty on Default-133

Basic rules of leasing-160

Penalty for late payment of rent-172

Insurance of the assets-174

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