Is it permissible to finance the finishing of a hotel and the purchase of its furniture and equipment with a commercial bank loan, in a European country, with the bank directly paying suppliers upon the client's request and based on their invoices, without the bank being a party to the supply contracts, and without transferring any funds to the client, and settling the loan after the project is completed?

The aforementioned financing method is impermissible because it is an usurious loan (riba) and thus forbidden. Scholars have unanimously agreed that any loan with a stipulated increase is usury. The Islamic Research Academy at Al-Azhar issued a resolution stating that "interest on all types of loans is forbidden usury." There is no difference whether the client receives the loan directly or requests its transfer to the contractor; in both cases, the relationship is one of usurious borrowing. The permissible alternative is a Murabaha contract, where the bank purchases the furniture for itself and takes possession of it, then sells it to the client. This requires two separate contracts: the first between the bank and the contractor, and the second between the bank and the client, with no contractual link whatsoever between the client and the contractor.