Islamic Baking Innovation With a Special Focus on Al-Ijarah Thumma Al-Bai (AITAB)

Abstract

Every market strives to develop new products and services. For a relatively new industry like Islamic banking, this is particularly crucial. The need to create fresh ideas and products that generate demand and ensure market competition is paramount. Islamic banks, in particular, must be innovative in their product offerings to gain a competitive edge over the 'already set' conventional banks. The increasing need to expand the range of products and services to meet consumers' more sophisticated needs and the complex requirements of today's business is a significant challenge. This chapter, focusing on AITAB, explores this unique product's mechanics, benefits, and challenges within Islamic banking. AITAB, with its crucial role in maintaining compliance with Sharia principles, also significantly contributes to fostering economic growth, thereby paving the way for a promising future of Islamic banking.