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The question

Is it permissible to benefit from government agricultural support conditioned upon insuring the project and purchasing shares from the institution distributing the support, knowing that this institution has a banking character?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is permissible for the state to assist citizens with grants or loans, provided that the loan does not entail a stipulated increase or benefit for the lender, based on the hadith of Ibn al-Mundhir: "They [the scholars] have unanimously agreed that if the lender stipulates an increase or a gift from the borrower... then taking an increase on that is usury."

As for insurance, conventional commercial insurance is forbidden because it is based on gambling (maysir), as Allah the Almighty says: (O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone altars [to other than Allah], and divining arrows are but defilement from the work of Satan, so avoid it that you may succeed) [Quran 5:90]. Cooperative insurance, however, is permissible because it is based on cooperation and donation.

Regarding investing in companies by purchasing shares, it is permissible if these companies do not deal with usury and invest their money in lawful transactions. It is forbidden if they deal with usury or deposit their money in usurious banks, as Allah the Almighty says: (O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged) [Quran 2:278-279]. And as the Prophet, peace and blessings be upon him, said: "Allah has cursed the one who consumes usury, the one who gives it, and its two witnesses." And he said: "They are all equal in sin."

Summarized from the full answer at Ftawy · imported

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Where this answer came from
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Ftawy
Original fatwa ID
42630
Imported
Translation status
Source text, unreviewed
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