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