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Is it permissible for the state to deal in usury, especially since all scholars in the country agree that banking transactions are usurious?

1 min readAlso available in العربية

Usury (Riba) is forbidden for individuals and states, based on the Almighty's saying: "Allah has permitted trade and forbidden usury." It is also forbidden to consume usury or to facilitate it. Scholars have categorized companies into three types: investing in some of them is prohibited, such as usurious banks; it is permissible in others; and mixed companies require detailed examination. It is advisable to consult the fatwas of scholars such as Dr. Yusuf Al-Shubaili, Al-Osaimi, and Al-Rajhi.

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

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