The Three Pillars of This Domain
Pillar 1 — Ijarah (Lease): The lessor OWNS the asset; the lessee has the RIGHT TO USE it. Ijarah Muntahia Bittamleek adds ownership transfer by the end of lease. Subject: the Ijarah standard.
Pillar 2 — Musharakah (Partnership): Two or more parties contribute capital and share management, profits, and losses. Diminishing Musharakah allows one partner to gradually buy out the other. Subject: the Musharakah standard.
Pillar 3 — Mudarabah (Trust Partnership): Rabb al-Mal (capital provider) and Mudarib (entrepreneur) partner. Capital provider bears ALL capital loss; entrepreneur bears ALL operational loss. Subjects: the Mudarabah standard, the Profit Distribution standard, the Capital Protection standard.
Comparison Matrix
| Feature | Ijarah | Musharakah | Mudarabah |
|---|---|---|---|
| Ownership of asset | Lessor owns; lessee uses | Both own (joint or several) | Rabb al-Mal owns; Mudarib manages |
| Capital contribution | Lessor only | Both parties contribute | Rabb al-Mal only |
| Management | Lessor (lessee follows conditions) | Both (unless delegated) | Mudarib only |
| Risk on capital | Lessor bears asset risk | Both share capital losses | Rabb al-Mal only (Mudarib loses effort) |
| Profit sharing | Rental (fixed or variable) | By agreement (equal or unequal) | By pre-agreed ratio |
| Loss allocation | Lessor bears asset loss | Proportionate to capital terms | Rabb al-Mal bears ALL capital loss |
| Duration | Fixed term (must be specified) | Indefinite (unless agreed) | Indefinite (unless restricted) |
| Relationship | Lessor-lessee (contractual) | Partnership (mutual) | Trust-based (fiduciary) |