Is the transaction carried out by the National Bank of Abu Dhabi in Egypt, involving the sale of palladium metal and its installment payment with an annual increase of 11%, along with the buyer authorizing the bank to sell the metal, which the buyer cannot dispose of except on the London Stock Exchange, Islamically permissible?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The transaction mentioned is organized tawarruq, which is impermissible according to the resolution of the Islamic Fiqh Academy. In this, the bank arranges to sell a commodity to the mustawriq (the one seeking cash) for a deferred price, and then the bank sells it on behalf of the mustawriq for an immediate cash price. It is permissible to conduct a valid tawarruq by having the bank purchase a commodity and deliver it to the customer, who then sells it in the market to benefit from its price.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/115104
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 115104
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy