Ijara is an alternative spelling of ijarah, the contract in Islamic finance under which the owner of an asset transfers the right to use it to another party for an agreed period in return for rent. The main entry describes the contract, its conditions and its variants; this entry covers the spelling and how the term is used.
The word is a transliteration of an Arabic term, and no single English form is standard. "Ijara" is common in the names of retail products, particularly home finance offered by Islamic banks in the United Kingdom and North America, and in market commentary. "Ijarah" is the form used by standard-setters such as AAOIFI and by most regulators. "Ijaarah" and "ijara wa iqtina" also appear, the latter referring to a lease that ends with the customer acquiring the asset.
There is no difference in meaning. In either spelling the lessor must own the asset and bear the risks of ownership during the lease, which is what distinguishes the rent from interest on a loan. The contract underlies sukuk ijarah, and it is often combined with a co-ownership arrangement in diminishing musharakah home finance.