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How can a joint commercial store be financed through one partner selling his share in a property to the other on credit, then repurchasing half of it through an Islamic bank, such that the property covers the bank installments from the store's profits?

1 min readAlso available in العربية

The aforementioned transaction is forbidden by Sharia because it involves collusion in a 'Bay' al-Inah' (sale and buy-back) transaction. The reality of the transaction is that the questioner buys his brother's share of the jointly owned property on a deferred payment basis, and then sells it back to him for cash, with the bank merely acting as an intermediary. This is one of the prohibited stratagems.

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

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