What is the ruling of Sharia on the following transactions: 1. Obtaining a personal loan from Abu Dhabi Islamic Bank in Egypt, where the bank purchases platinum for the requested amount, then sells it and deposits the money into the borrower’s account, and the amount is paid in installments with an increment, knowing that the bank presents Sharia fatwas permitting this transaction? Is this increment considered usury, or does it fall under the permissible increment in the case of installments? 2. The company providing health insurance for employees by contracting with an insurance company that bears the annual premium, allowing the employee to benefit from health services, and in some cases the employee pays a small portion of the cost? 3. Using the "Premier Card" for gold installments without interest or late fees over a specified period, where the gold shop owner pays the full price of the gold to "Premier" company, and the buyer pays in installments to "Premier" company?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The described transaction is a form of organized bank Tawarruq, and a resolution was issued by the Islamic Fiqh Academy prohibiting it, because the bank sells the commodity to the customer (mustawriq) for a deferred price, and then acts on his behalf in selling it to another buyer for a spot price.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 154450
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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