For a business asset you want to own outright and keep for its working life, murabaha is the simplest fit: the bank buys it, sells it to you at a disclosed mark-up, and it is yours from day one. For an asset you will replace before it wears out, or where you want the bank to carry ownership risk, ijarah is the better fit: the bank owns it and leases it to you, usually with a transfer at the end. For an asset that does not exist yet, such as a plant built to specification or a fitted-out premises, istisna is the only one of the three designed for the job. The sections below set out who owns, who maintains, who insures and how you leave under each contract, and which Qatari banks and Qatar Development Bank publish which structure.
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The three contracts in one sentence each
Murabaha is a sale: the bank acquires the asset you have specified, then sells it to you at cost plus a disclosed profit, payable in instalments, and you own the asset from the moment of sale. Ijarah is a lease: the bank buys and keeps ownership of the asset and you pay rent for its use for an agreed term; in the ijarah muntahia bittamleek variant, the bank promises to transfer ownership to you at the end by gift or token sale. Istisna is a manufacturing contract: you commission the bank to deliver an asset built to an agreed specification by an agreed date for an agreed price, and the bank in turn commissions a contractor to build it, usually through a parallel istisna. AAOIFI's Shariah standards on murabaha (No. 8), ijarah (No. 9) and istisna (No. 11) govern the detail at Qatar's Islamic banks, which all follow AAOIFI standards under Qatar Central Bank rules.
The home-financing version of this comparison, our murabaha versus ijarah guide for property buyers, covers an individual buying a flat to live in. A business asset differs in three ways: the asset depreciates and may be replaced, the business may want it off its balance sheet, and the purchase is often part of a larger project with construction, equipment and working capital components funded together. Those differences change which contract fits.
Who owns, who maintains, who insures, who carries residual risk
| Question | Murabaha | Ijarah / ijarah muntahia bittamleek | Istisna |
|---|---|---|---|
| Who owns the asset during the term | You, from the sale date | The bank, until transfer at the end | The bank until delivery, then you (or the bank under a follow-on ijarah) |
| Who bears major maintenance | You | The bank as owner; routine upkeep usually passed to you | Contractor until delivery; then as per the follow-on structure |
| Who arranges and pays takaful | You, as owner, on the bank's requirement | The bank as owner; cost typically priced into rent | Contractor during build; owner thereafter |
| Residual value risk | You | The bank, unless the transfer promise moves it to you | You once delivered |
| Can the price change | No; fixed at sale | Rent for future periods can be reset to a benchmark at agreed dates | No; fixed at contract, with variation only by agreed amendment |
| Balance sheet treatment | Asset and payable on your books | Depends on accounting standard applied; ask your auditor | Work in progress then asset |
Two rows deserve emphasis. Under AAOIFI's ijarah standard the lessor must bear the burdens of ownership, which is why a properly written ijarah puts major maintenance and takaful on the bank; if a bank's ijarah shifts both to you entirely, it is drifting towards a disguised sale, and you should ask the bank's Shariah department how it reconciles that. Under the murabaha standard the price is fixed once the sale is executed and cannot be increased for late payment; the bank may charge a late-payment amount only if it goes to charity. That fixity is murabaha's protection and its cost: you cannot benefit from a falling benchmark either.
What Qatar's banks publish for business assets
Dukhan Bank's corporate finance page lists goods murabaha, commodity murabaha, istisna and forward ijara, wakala murabaha and ijara, alongside contract finance and project finance advisory. That is the fullest published menu of the four banks and the only one that names forward ijarah, which is the structure used when the bank finances a build and leases the finished asset to you. AlRayan Bank's corporate financing page lists murabaha to the purchase orderer, ijarah, ijarah muntahia bittamleek, istisna and mudaraba, with explanatory notes on each. QIB presents business finance through its Aamaly SME tier and its corporate banking pages, which describe working capital finance, credit facilities and trade finance (letters of credit, guarantees, documentary collections) rather than naming the contracts on the public page; the structure is specified in the facility letter. QIIB's corporate banking page describes Shariah-compliant corporate products and specialist guidance on documentation and contractors without listing contract types publicly. Our QIB profile and the other provider pages carry the detail we have verified on each bank.
None of the four banks publishes a rate card for business asset finance. Pricing is quote-only and is usually expressed as a margin over the Qatar Central Bank's benchmark, which is why the ijarah rent-reset clause matters: in a floating-rate ijarah, your rent follows the benchmark at each reset date, while a fixed murabaha does not. Ask for both quotes on the same asset and compare the total cost over the term you actually intend to keep it, not the headline rate.
Qatar Development Bank: the published terms
QDB is the one lender in Qatar that publishes its business asset terms in full, and they are generous. Its machinery and fixed assets financing page, read on 9 September 2026, covers the purchase cost of machinery including logistics and transport, installation and training, ancillary equipment and other fixed assets. Financing is up to 80% of total cost for a standalone purchase, or up to 100% of the asset cost within an overall limit of 80% of total project cost when the asset is part of a composite project. The profit rate is up to 5%, the tenor is up to 15 years, and that tenor includes a grace period of up to 3 years. Cost is verified against two quotations from reputable manufacturers or dealers. Required documents include a valid commercial registration, 100% personal guarantee coverage by one or more Qatari sponsors or proportionate guarantees from all partners, a takaful insurance policy, and a main banking agreement.
QDB's movable assets financing page, covering furniture, vehicles, light trucks, buses, IT systems and movable equipment, publishes the same 5% ceiling and 15-year tenor with 3 years' grace, financing up to 80% standalone or up to 100% within an overall 60% of total project cost for composite financing. The page states the Shariah model is mainly murabaha and tawarruq. QDB's general direct financing page adds that the bank finances up to 60% of total project cost, up to 80% of equipment and machinery (not including construction), up to 100% of raw material, and up to 100% of salaries and rent for the first 6 months of operations, within the same 15-year maximum. Our QDB profile explains eligibility by sector, and our Islamic business financing playbook for Qatar covers how QDB sits alongside the commercial banks.
- Obtain two quotations for the asset from reputable suppliers; QDB verifies cost against them before approval.
- Decide whether the asset is a standalone purchase (up to 80% financed) or part of a composite project (the project-level limit then applies).
- Arrange the takaful policy on the asset; QDB lists it as a required document, not an optional extra.
- Line up the guarantee: 100% personal guarantee from Qatari sponsors or proportionate guarantees from all partners.
- Model the repayment over a tenor that matches the asset's useful life, using the grace period for commissioning rather than as free money.
Early settlement and exit under each contract
Leaving early is where the contracts diverge most sharply. In a murabaha, the full sale price is owed from the day of sale; if you settle early, the bank may grant a rebate (ibra) on the unearned profit, but under AAOIFI's standard it cannot be contractually obliged to, so the rebate policy in the facility letter and the bank's practice are what you rely on. In an ijarah, you owe rent only for periods you have used the asset; early exit means ending the lease and either buying the asset at an agreed price or returning it, and the bank cannot charge rent for future periods. That makes ijarah structurally kinder to a business that may upgrade or dispose of the asset early. In an istisna, exit before delivery is a cancellation of a manufacturing contract and is governed by the contract's variation and termination clauses; after delivery, the follow-on financing (usually murabaha or ijarah) governs. Our guide to early settlement and ibra in Qatar sets out each bank's published position.
Decision table by asset type
| Asset | First choice | Why | Second choice |
|---|---|---|---|
| Delivery vans, cars, light trucks | Ijarah (with transfer) if replacing within 4 to 5 years; murabaha if keeping to end of life | Vehicles depreciate fast; ijarah leaves residual risk and takaful with the bank | QDB movable assets murabaha at up to 5% if eligible |
| Production machinery, heavy equipment | QDB machinery financing (murabaha) if eligible; otherwise bank murabaha | Long useful life suits ownership; QDB's 15-year tenor and 3-year grace fit commissioning | Ijarah where you want the bank to carry major maintenance |
| Existing premises, warehouse or shop | Ijarah muntahia bittamleek | Keeps property risk with the bank, rent resets track the market, transfer at the end | Murabaha for a short, fixed-price purchase |
| Build-to-order plant, fit-out, new building | Istisna, then forward ijarah or murabaha | Only istisna finances an asset that does not yet exist; forward ijarah converts it to a lease on delivery | QDB composite project financing for the whole project |
| IT systems, office furniture | Murabaha | Low value, short life, no secondary market for the bank to own | QDB movable assets if part of a project |
For construction, the detail of how an istisna is drawn down against certified work, and how it converts to a lease, is in our land and construction finance guide for Qatar. The takaful requirement runs through every row: under murabaha and QDB financing you buy it, under ijarah the bank buys it and prices it in, and in both cases the cost is real. Our article on takaful inside Qatar financing shows how to get it quoted before you sign.
Verdict by business situation
A trading or services SME in a QDB-mandated sector buying machinery or vehicles: start with QDB. Its published 5% ceiling, 15-year tenor and 3-year grace are not matched by any commercial bank's quote we have seen, and the murabaha structure means you own the asset. Accept the guarantee and takaful requirements as the price of the terms.
A business outside QDB's sectors buying vehicles or equipment it will replace within five years: ask for an ijarah muntahia bittamleek quote first, with the rent-reset dates and the end-of-term transfer price written in. Then ask for a murabaha quote on the same asset and compare total cost over your real holding period, not the full term. Choose ijarah if you value exit flexibility and the bank carrying ownership; choose murabaha if you want a fixed price and will keep the asset.
A business acquiring premises: ijarah muntahia bittamleek is the natural fit and all four banks offer it; Dukhan and AlRayan name it publicly. A business commissioning a build or fit-out: istisna with a forward ijarah on delivery, which Dukhan names on its corporate page and AlRayan lists as istisna; ask QIB and QIIB for the same structure by name. Use our comparison tool to line up the banks and our business financing hub for the wider picture. Facts checked against qdb.qa, dukhanbank.com, alrayan.com, qib.com.qa, qiib.com.qa on 9 September 2026.
Frequently asked questions
What is the difference between murabaha and ijarah for business financing?
Murabaha is a sale: the bank buys the asset and sells it to you at cost plus a fixed, disclosed profit, and you own it from day one. Ijarah is a lease: the bank owns the asset and you pay rent for its use, with an optional transfer of ownership at the end. Ownership, maintenance, takaful and residual risk sit with you under murabaha and with the bank under ijarah.
What is ijarah muntahia bittamleek?
It is a lease ending in ownership. The bank buys the asset, leases it to you for an agreed term, and separately promises to transfer ownership to you at the end, by gift or for a token or agreed price. AAOIFI Shariah Standard No. 9 requires the lease and the transfer promise to be separate documents and the bank to bear ownership burdens such as major maintenance and takaful during the term.
When should a business use istisna?
Use istisna when the asset does not yet exist: a factory, a fitted-out building, custom plant or a vessel built to specification. You commission the bank to deliver the asset to an agreed specification, date and price, and the bank commissions the contractor. On delivery the financing typically converts to a murabaha or forward ijarah. Murabaha and ordinary ijarah cannot be used for an asset that is not yet in existence.
What does Qatar Development Bank finance and on what terms?
QDB's published terms cover machinery, fixed assets and movable assets for SMEs in its mandated sectors: up to 80% of asset cost standalone, a profit rate up to 5%, and a tenor up to 15 years including a grace period up to 3 years. It verifies cost against two supplier quotations and requires a commercial registration, personal guarantees from Qatari sponsors or partners, and a takaful policy on the asset.
Can I settle a murabaha or ijarah early?
Yes, but the economics differ. Under murabaha the whole price is owed from the sale date, and any rebate on unearned profit is at the bank's discretion under AAOIFI rules, so read the facility letter's ibra clause. Under ijarah you pay rent only for periods used, so exit means ending the lease and buying or returning the asset, with no future rent owed. Ijarah is structurally easier to leave.
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Who pays takaful on a business asset financed by an Islamic bank?
Under murabaha, you, because you own the asset; the bank will require cover as a condition of finance, and QDB lists a takaful policy among its required documents. Under ijarah, the bank as owner should arrange takaful and will price the cost into your rent. Either way the cost is part of the total, so ask for the takaful quote alongside the finance quote.
