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What is the ruling on Islamic banks selling goods by installment that they do not possess, and does the ruling differ between movable and fixed goods?

1 min readAlso available in العربية

For Murabaha sale to be permissible in Islamic banks, it is a condition that the bank must possess the commodity before selling it to the requesting buyer, whether the commodity was already owned by the bank or acquired by it before the contract. If the bank does not possess the commodity before the sale, then it is impermissible and considered a circumvention of usury (riba). There is no difference in this regard between movable and immovable goods.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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