Ijarah Muntahia Bittamleek (IMB) is essentially Islamic lease-to-own financing. The bank buys an asset (like a house or car), leases it to you for a fixed period, and at the end of the lease, ownership transfers to you — either as a gift or through a token sale.
Think of it like renting an apartment, but at the end of your lease, you own it. Your monthly payments cover rent plus a portion of the purchase price. Unlike conventional mortgages, there is no interest — the bank earns through rental income.
IMB is hugely popular for Islamic home financing and vehicle purchases across the Middle East and Southeast Asia. The key Shariah requirement: the bank must bear ownership risks (maintenance, insurance) during the lease period.