"I read that Islamic Banks usually make transfer of ownership just an option to sell at the end of a
  • "Evidently, you are asking about the ultimate disposition (the residual value) of assets that are leased out in an ijarah contract. The operative principle in the matter is that Islamic law prohibits the conmingling of two separate transactions under a single contract. Likewise, the Shari`ah specifies that the asset will be the property of the lessor when the lease period comes to an end. Thus, when Islamic banks enter into ijarah contracts with their clients, they will not include a clause to the effect that the assets will be sold or gifted to the lessee. Instead, they will unilaterally promise to enter into a contract with the lessee at a later date. Such a promise, according to the classical jurists, is binding only on the party that makes it. Thus, the option in the matter is left to the lessee; if the lessee so chooses, he may enter into a contract with the bank for the sale or gift of the asset. If, on the other hand, he chooses not to, then that is his prerogative.
    The answer has been taken from various sources of scholars, academics and muslim inspire research team – and we do not verify its accuracy And Allah knows best."