What is the ruling on purchasing a residential unit under construction from Al-Handhal Company within the Tamkeen initiative, knowing that the price of the unit is predetermined, and the buyer pays two upfront installments to the company, and the bank finances an amount of $76,000 transferred directly to the company, and the amount is repaid to the bank in monthly installments without increase, with a 1% annual murabahah clause between the company and the bank?
The involvement of a bank in a contract between a buyer and a seller can take two forms:
First: The bank acts as a lender to the buyer. If the loan involves usurious interest (riba), then it is not permissible.
Second: The bank purchases the house and then sells it to the buyer on a murabahah (cost-plus-profit) basis. This is permissible under two conditions: that the house has already been constructed, and that the contract explicitly states that the seller is the bank.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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