What is the primary difference between a conventional lease and an 'Ijarah' contract in Islamic Finance?

Test yourself: pick an answer

• A)In a conventional lease, the lessor owns the asset, but in Ijarah, the lessee owns it immediately
• B)In Ijarah, the lessor must retain the risk and ownership responsibilities related to the asset (such as major maintenance and insurance), whereas conventional leases often transfer these to the lessee
• C)In Ijarah, rental payments are strictly forbidden
• D)In a conventional lease, the asset must be donated to charity at the end of the term