Education Financing Services in Islamic Banks

The intensified rivalry in the sector of banking sector necessitates that Islamic banks are required to take the initiative to establish and evolve products so that they can maintain and preserve their unique identity. Nevertheless, and even though these banks are huge and widely spread in the Arab and Islamic world, the offered services are not commensurate with the size of various economic requirements, in addition to the urgent financial obligations and the challenges that call for constant work to come up with solutions, arrangement, and treatments required for achieving the targeted objectives. One of the services that could meet the increasing economic requirements is the “In-Debt Lease Contract.” In its broad sense, this type of contract can be defined as “an agreement on something, whether it is a property, a benefit, or a service, identified in debt, whether with prompt or delayed fees.” It is indeed a financing contract, which has several benefits for both parties, thus acquiring the flexibility to harmonize and adapt to modern developments, such as time extension, and delay of payment despite the absence of a contract subject. The contract is not terminated, and it can be replaced by other subjects.