Ijarah

What Ijarah does

Ijarah Finance Company is a Riyadh-based, Saudi Central Bank (SAMA)-licensed financial services provider founded in 2012 that delivers Sharia-compliant consumer financing, with a primary focus on automotive lease-to-own products. Its core offering is an Auto Lease product that finances vehicles up to SAR 250,000 over terms of up to 60 months, with APRs disclosed between 17.15% and 22.69% and a residual value range of 0% to 35%; the portfolio is complemented by Murabaha (cost-plus financing with disclosed APRs in the 35-37% range) and Tawarrouq (commodity-based personal financing in the mid-16% APR range). All products are structured under formal Shariah supervision (external Mufti and Shariah scholar advisors) and are governed by SAMA license 201508/ أ ش / 36.

The company operates a multi-channel distribution model consisting of physical branches in the Central and Eastern regions, a toll-free customer care center (8001111800), an online e-services self-service portal, and a social media presence across Facebook, X, YouTube, LinkedIn, and Instagram. Underlying infrastructure is built on a Sharia-compliant financial technology platform with integrations to national payments (SADAD biller code 187), identity verification (Elm/Nafath, Yakeen), credit bureau (SIMAH), and web/social analytics. The customer base is split across Saudi citizens, residents, women, public- and private-sector employees, and retirees — a mass-retail consumer finance profile rather than a corporate or SME book.

The business model is a standard Islamic finance spread: revenue is earned on the financed principal plus disclosed profit margin, with customer acquisition conducted directly rather than through broker or dealer intermediation. The company has disclosed no parent, no institutional equity funding, and no M&A activity; ownership is private and the entity is governed by a board chaired by Turki Mohammed AlBaiz with Fayez Abdullah AlFayez as CEO since 2022. Financial scale (revenue, portfolio size, and profit) is not publicly disclosed, and the firm has 51-100 employees.

Name

Ijarah

Legal name

Ijarah Finance Company

Website

https://ijarah.sa

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

51–100 employees

Short description

Ijarah Finance is a SAMA-licensed, Riyadh-based provider of Sharia-compliant consumer financing, primarily offering Sharia-compliant auto lease-to-own products up to SAR 250,000 across Saudi Arabia, complemented by Murabaha and Tawarrouq personal financing for Saudi citizens, residents, women, employees, and retirees.

Ownership category

akta.pro rank

Product category

Islamic Consumer Auto Finance

NAICS

Passenger Car Leasing (532112)

akta.pro primary industry

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH)

Keywords

• Auto lease financing
• Sharia-compliant leasing
• Islamic personal financing
• Vehicle leasing services
• Consumer finance products

Headquarters

HQ city

Riyadh

HQ country

Saudi Arabia

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Supply Chain

Revenue model

1. Auto Lease Financing: Ijarah generates revenue through Sharia-compliant auto leasing contracts where customers lease vehicles with an ownership promise at the end of the contract period. The company charges financing amounts with associated fees and interest rates compliant with Islamic finance principles.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Ijarah is a Saudi Central Bank (SAMA)-licensed financial services company that offers Sharia-compliant integrated financial leasing solutions to individual consumers. Its core offerings include auto lease (vehicle leasing that ends in ownership transfer), Murabaha cost-plus personal financing, and Tawarrouq commodity-based personal financing, with tenors up to 60 months and financing amounts up to SAR 250,000.

Product overview

Ijarah Finance is a Sharia-compliant financial services company offering three main products: Auto Lease for vehicle financing with ownership promise, Tawarrouq for commodity-based personal financing, and Murabaha for cost-plus financing. All products are structured according to Islamic Sharia principles and regulated by the Saudi Central Bank (SAMA). The company operates primarily through digital channels including a customer e-services portal.

Differentiator

Problem solved

Functional benefit

Products and services

• Auto Lease Sharia-compliant auto leasing product leading to vehicle ownership for Saudi citizens, residents, women, public and private sector employees, and retirees. Financing up to SAR 250,000 with repayment periods up to 60 months, no guarantor requirement, comprehensive cooperative insurance, flexible final payment options, and transferable leasing contracts.
• Tawarrouq Sharia-compliant commodity trading and Murabaha financing product for personal financing needs with competitive profit rates. Offered in 12, 24, and 36-month tenors with disclosed APR (e.g., 16.46%-16.71%).
• Murabaha Cost-plus financing product based on Islamic commercial jurisprudence, providing personal financing with transparent profit rate disclosures. Offered in 12, 24, and 36-month tenors with disclosed APR (e.g., 35.27%-36.75%).

Quantifiable outcome

• Financing amount up to SAR 250,000
• +2 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

Partnerships

One partnership is on record.

• SADADcoreTechnology or IntegrationSADAD bill payment service integration allowing customers to pay their due amounts using biller code 187.

Scale indicators2 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Bank AlJazira: Saudi bank offering Sharia-compliant personal financing and Murabaha products to retail and SME customers. Comparable in product structure to Ijarah, especially in personal financing and Murabaha categories.
• Alinma Bank: Saudi fully-Sharia-compliant bank with personal financing, auto finance, and Murabaha offerings targeting Saudi individuals and SMEs. Comparable to Ijarah in its Sharia positioning and retail finance focus, though operating at materially larger scale.
• Al Rajhi Bank: Largest Islamic bank in Saudi Arabia offering Sharia-compliant auto finance, personal financing, and Murabaha products at scale. Competes with Ijarah for the same Saudi consumer finance wallet but with vastly larger balance sheet, funding cost advantage, and branch network.
• Saudi National Bank (SNB): Largest Saudi bank by assets, formed from NCB and Samba merger, offering Sharia-compliant personal and auto financing products. Represents significant competitive overlap with Ijarah's consumer finance focus, with far greater scale and funding flexibility.
• Bank Albilad: Saudi Sharia-compliant bank offering personal financing, auto financing, and Murabaha products to Saudi consumers and businesses. Overlaps directly with Ijarah's retail Sharia-compliant finance products but with broader product range and stronger digital franchise.
• Riyad Bank: Major Saudi bank where Ijarah's Chairman previously served in Retail Banking leadership. Offers personal and auto financing including Sharia-compliant structures, competing directly with Ijarah's product suite and target customers.
• Banque Saudi Fransi: Saudi bank with Sharia-compliant personal and auto financing offerings alongside conventional products. Provides direct competition to Ijarah in the Saudi retail Sharia-compliant finance space, with stronger corporate relationships and larger funding base.

Regional players

• Kuwait Finance House: Major Kuwait-based Islamic bank with presence across the GCC offering consumer and auto Sharia-compliant financing. Comparable in product type and Sharia framework but operates in different geographies with no direct KSA retail overlap.

Others

• SIMAH (Saudi Credit Bureau): Saudi credit information bureau used by Ijarah for credit scoring and fraud prevention. Adjacent infrastructure provider rather than a competitor; included because its data and scoring services directly shape Ijarah's underwriting and risk-based pricing.

Direct peers

• Nayifat Finance Company: Saudi-listed consumer finance company specializing in auto and personal financing under SAMA oversight. Closely comparable to Ijarah in target customer (Saudi individuals), product mix (auto lease and personal finance), and Sharia-compliant positioning.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/ijarah_sa
• YouTubeyoutube.com/@ijarahfinance7839
• Facebookfacebook.com/ijarah
• LinkedInlinkedin.com/company/ijarah

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Ijarah