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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The aforementioned transaction is forbidden by 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/86126
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 86126
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy