Can a financial institution acquire a specific asset to lease it to a customer, if the customer then leases back the asset to the institution? The customer benefits from the price difference and the institution
According to the Hanafis, it is not permissible to lease an asset back to its owner.
However, according to the Malikis, this scenario is permissible.
According to the Shafi’is and Hanbalis, they differ as to whether it is permissible for the customer to enter into the second lease contract, before taking possession of the actual asset from the first lessor (owner). Once the customer has taken possession of the asset, there is no disagreement on its permissibility to lease the asset back to its owner.
And Allah knows best!
(Mufti) Billal Omarjee