IJARAH/ISLAMIC LEASING

It means to employ the services of a parson on wages. Another type of ijarah relates to paying rent for use of an asset or property
Ijarah is a contract of a known and proposed usufruct against a specified and lawful return or consideration for the service or return for the benefit proposed to be taken, or for the effort or work proposed to be expended. In other words, Ijarah or leasing is the transfer of usufruct for a consideration which is rent in case of hiring of assets or things and wage in case of hiring of persons.
Ijara(Islamic) & Leasing(conventional) are not same at all.

Basically Ijara is based on Partnership Basis(which is purely HALAL).
An example of car financing.
In Leasing, you have to pay a certain amount as down payment and the remaining amount is to be paid in installments.
While in Ijara, bank & you purchase a car together in which bank has 80% share (investment). Now u r supposed to pay 2 type of amounts:
1-since u r the owner of only 20%, u have to acquire bank's 80% share so that u could become the owner of car. For that, you pay a certain mutually decided amount.

2-you have to pay RENT for using 80% of bank's investment. This rent will be decreasing because every month you will be acquiring bank's share & rent is paid according to bank's share.

Leasing or IJARA are in NO WAY partnership based modes, in Islamic Banking partnership modes are only and only Musharaka & Mudaraba BUT NOT IJARA. In IJARA the bank has the ABSOLUTE ownership of the leased asset. And the customer [lessee] pays rentals for the use of this asset.