What is the ruling on the percentage (1%) that Al Rajhi Bank takes as administrative fees for Tawarruq, which increases with the increase in the financing amount?

First: Tawarruq is the purchase of a commodity to obtain money. The correct method of tawarruq in shares is for the bank to buy shares from sharia-compliant companies, then sell them to you, and then you undertake to sell them to a third party other than the bank. It is not permissible to authorize the bank to sell them, and this is what is called organized banking tawarruq, which is Islamically prohibited.

Second: It is permissible for the bank to take a profit on the sale of shares, and perhaps this is what is meant by administrative fees on tawarruq. In addition to the profit, Al-Rajhi Bank takes a fixed administrative fee (500 Riyals) which is not a percentage of the amount.

Third: There is no harm in the bank taking non-refundable administrative fees from the party ordering the purchase in a murabaha financing transaction, in exchange for their assessment of the client's solvency, preparation of the file, follow-up on the commodity, and so on. This is not a loan contract, but rather a sales contract between the bank and the client. In summary: There is no harm in the bank taking non-refundable administrative fees in murabaha financing. And Allah knows best.