Islamic Contract Law: Classification of

Mal

Based on Whether It Lasts After Use

Property (mal) can also be classified according to whether it remains after being used or is consumed through use.

In this classification, mal is divided into two types:

1. Istihlaki — non-lasting or consumable property
2. Isti‘mali — lasting or non-consumable property

1.

Istihlaki

— Non-Lasting or Consumable Property

Istihlaki refers to property that cannot normally be used without consuming it, destroying it, or changing its original form.

Once it is used, the same item cannot be returned and used again in the same way.

Examples

• Food
• Drinking water
• Petrol
• Money

Example: Food

If a person eats a plate of rice:

• The rice is consumed.
• The same rice cannot be returned after use.
• Therefore, food is istihlaki property.

Why Is Money Considered

Istihlaki

?

Money is slightly different because it is not physically destroyed when used.

However, when a person spends or lends money:

• The exact money leaves the person’s ownership.
• The same notes or coins are not normally returned.
• What is returned is an equivalent amount, not necessarily the identical money.

For example:

Ahmad lends Ali RM1,000.

Ali may spend the RM1,000. Later, Ali must repay RM1,000 of equivalent value, not necessarily the same banknotes.

Therefore, money is treated as istihlaki.

Easy Meaning

Istihlaki = property whose use consumes it or requires its ownership/form to be replaced.

2.

Isti‘mali

— Lasting or Non-Consumable Property

Isti‘mali refers to property that can be used repeatedly without destroying or consuming its original form.

The property remains in existence after being used.

Examples

• Book
• Computer
• House
• Car
• Furniture
• Bicycle

Example: Computer

A person can use a computer today and use the same computer again tomorrow.

The computer remains after use.

Therefore:

Computer = isti‘mali property

Example: House

A person can live in a house for many years while the same house continues to exist.

Therefore:

House = isti‘mali property

Easy Meaning

Isti‘mali = property that can be used repeatedly while the same property remains.

Importance of This Classification

The distinction between istihlaki and isti‘mali is important because it affects several Islamic contracts.

1. Effect on

Ijarah

— Lease Contract

Ijarah is a contract where a person pays to obtain the benefit (manfa‘ah) of an asset or service for a certain period.

For ijarah to work, the original asset should generally remain after its use.

Therefore, ijarah is generally suitable for isti‘mali property.

Valid Example

Ahmad rents a car to Ali for three days.

• Ali uses the car.
• The car remains in existence.
• At the end of the lease, Ali returns the same car.

Therefore:

Car = isti‘mali → suitable for ijarah.

Why

Istihlaki

Property Cannot Normally Be Leased

Consumable property cannot normally be the subject of an ordinary ijarah because using it requires consuming it.

Example: Food

Suppose Ahmad says:

“I lease you this bag of rice for one week.”

This does not work like a normal lease because Ali cannot eat the rice and later return the same rice.

Once it is eaten, it is gone.

Therefore:

Istihlaki property is generally not suitable for ijarah.

2. Difference Between

Qard

and

‘Ariyah

This classification also helps distinguish between two important contracts:

• Qard — loan
• ‘Ariyah — gratuitous loan of use

Qard

— Loan of Consumable Property

Qard generally applies to property that is consumed or transferred through its use.

The borrower receives ownership of the property and must later return an equivalent replacement.

Therefore, qard is commonly associated with istihlaki property.

Example: Borrowing Money

Ahmad lends Ali RM500.

Ali may use and spend the money.

He does not need to return the exact same banknotes.

Instead, he must return:

RM500 of equivalent value.

Therefore:

• Money = istihlaki
• Contract = qard

Another Example

If Ahmad lends Ali 10 kg of standard rice as qard:

• Ali may consume the rice.
• He later returns 10 kg of equivalent rice.

The same original rice does not have to be returned.

‘Ariyah

— Free Loan of Use

‘Ariyah refers to allowing another person to use property for free and then return the same property.

Because the same item must remain and be returned, ‘ariyah is suitable for isti‘mali property.

Example: Borrowing a Laptop

Ahmad allows Ali to use his laptop for one week without payment.

• Ali may use the laptop.
• Ownership remains with Ahmad.
• After one week, Ali must return the same laptop.

Therefore:

• Laptop = isti‘mali
• Contract = ‘ariyah

Another Example: Borrowing a Book

Fatimah allows Aisha to borrow her textbook for two weeks.

Aisha:

• Uses the book
• Does not become its owner
• Must return the same book

Therefore:

Book = isti‘mali

Free loan of the book = ‘ariyah

Key Difference Between

Qard

and

‘Ariyah

The easiest way to distinguish them is to ask:

Must the same exact item be returned?

If no, and only an equivalent replacement is required:

Qard

Example: Borrow RM500 → return another RM500.

If yes, the same item must be returned:

‘Ariyah

Example: Borrow a laptop → return the same laptop.

Connection with

Manfa‘ah

This classification also connects with the concept of manfa‘ah.

With isti‘mali property, a person can transfer or allow another person to enjoy the benefit of the asset while preserving the asset itself.

Example

A house can be rented.

• House itself = ‘ayn
• Living in the house = manfa‘ah
• House remains after use = isti‘mali

This is why a house can be the subject of an ijarah contract.

By contrast, food cannot normally be leased for consumption because obtaining its benefit requires destroying or consuming the food itself.

Simple Summary

Istihlaki

Property that is consumed, destroyed, or transferred through its use.

Examples:

• Food
• Petrol
• Money

Usually connected with:

Qard — borrower uses the property and returns an equivalent.

Isti‘mali

Property that remains after use and can be used repeatedly.

Examples:

• Book
• Computer
• House
• Car

Usually suitable for:

Ijarah — paid use of the property.

‘Ariyah — free use of the property.

Easy Way to Remember

Istihlaki = use it → original property is consumed or replaced.

Isti‘mali = use it → the same property remains.

And:

Money borrowed → Qard

Laptop borrowed for free → ‘Ariyah

House rented for payment → Ijarah