Is Sheikh Ibn Baz's ruling on the the impermissibility of associations correct?
Shaykh Ibn Baz, may Allah have mercy on him, permitted the system of revolving savings associations (jama'iyyat), while Shaykh Al-Fawzan disagreed, holding the view that they are forbidden. The Council of Senior Scholars examined this system, which involves a number of employees agreeing that each of them will pay a specific amount at the end of each month. The entire collected sum is then given to one of them in rotation, until each person receives the same amount as those before him, without any increase or decrease. After deliberations and discussions, the Council, by majority, approved the permissibility of this type of transaction due to the benefit it entails for everyone without harm or additional gain for anyone.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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