The Effect of Forward Leasing Determinants on Financing the Benefits of Travel and Transportation in Islamic Banks: An Empirical Study in Jordan

Abstract

This empirical study aimed at tackling the effect of the Forward Ijarah (al-Ijarah al-Mawsufah fil al-Dhimmah (AIMAD)) 3 Determinants (religious, legal, administrative and financial) on financing the benefits of Travel and Transportation in Islamic Banks. The study relied on analytical method and also based on a questionnaire as a tool to collect data from 100 employees who work in Jordanian Islamic banks (Islamic International Arab Bank, Jordan Islamic Bank and Jordan Dubai Islamic Bank).The findings came as follows. The Islamic methods used in Islamic banks enhanced the competition with the traditional banks. This study also concluded the provision of applying efficiency of the Forward Ijarah for transportation and travel in Islamic banks. The study recommended Islamic banks sector in Jordan to adopt the Forward Ijarah formula to the product of the benefit of transport and travel as one of the investment fields that contribute to increase it and work to stimulate it, in addition to showing its role in achieving economic and social development.