Is real estate financing or a bank loan considered permissible (halal), given that the banks are Islamic, and is there another solution for buying a house in Saudi Arabia?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Real estate financing is permissible if the bank first purchases the property for itself and then sells it to you at a profit, provided specific regulations and conditions are met. However, a bank loan where the price is repaid with an increment is usury (riba) and thus forbidden. As for organized tawarruq (monetization), there is a detailed ruling: regular tawarruq is permissible, but organized tawarruq is forbidden according to the more preponderant opinion. It is advisable to consult specialized scholars in your country before conducting any transaction.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/162984
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- Ftawy
- Original fatwa ID
- 162984
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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