Is it permissible to build a house through an Islamic Murabaha system with a bank, where the bank sends a representative to purchase construction materials while the Murabaha rate remains fixed at 4% annually, and the beneficiary is responsible for the workers' wages?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank buys construction materials and then sells them to you in installments with a known increase, this is permissible, provided the contract is free of late payment penalties, and that the increase is specified and known. However, if the bank gives you money to buy materials and then you return it to the bank with an increase, this is forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/165743
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 165743
- 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