Is financing through share tawarruq—in which a power of attorney is signed authorizing the bank to immediately buy and sell shares—considered permissible or forbidden tawarruq?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The correct method for "Tawarruq" (monetization) using shares is for the bank to purchase permissible shares and place them in its portfolio. Then, the bank sells them to you, and they are placed in a portfolio or account under your name. Subsequently, you sell them to a third party other than the bank. If the bank handles all of these operations, then this type of "Tawarruq" is not permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/173077
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 173077
- 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