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What is the ruling on purchasing a car through the Murabaha formula applied by Al Baraka Islamic Bank?

1 min readAlso available in العربية

The basic principle is that dealing with Islamic banks is permissible, unless it becomes clear to the customer that the bank is conducting a transaction that violates Islamic law, in which case dealing with it in that particular transaction becomes impermissible. As for Murabaha sale to a purchasing agent, it is permissible if the bank acquires ownership of the commodity and possesses it before selling it, bearing the responsibility for its perishing or returning due to a hidden defect. Then, it sells it to the customer for a price known to both parties and not subject to increase if payment is delayed.

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

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