Is what the Islamic bank charges the client for opening a letter of credit for importing goods considered interest if this percentage (4% of the credit value) changes with the change in the amount to be opened?

A letter of credit is a commitment from the bank to the seller to pay the price within a certain amount and a specified period, in exchange for the delivery of documents conforming to the instructions. There are two types of letters of credit:

1. A letter of credit fully covered by the client: This is considered an agency (wakalah), and the bank may take a commission as a fee for the agency, whether it is a lump sum or a percentage.

2. A letter of credit not fully covered: This is considered a guarantee or a loan from the bank, and the bank is not permitted to take a commission on it, except to cover actual costs. This is because a commission on a guarantee and a loan is considered usury (riba).

It is not permissible to deal with a letter of credit unless it is free from Sharia violations such as usury or taking a commission on a guarantee.

The Sharia-compliant alternative to an uncovered letter of credit is Murabaha, whereby the bank first buys the goods for itself and then sells them to the client at a profit, with the letter of credit opened in the bank's name and for its benefit to ensure the validity of the transaction.