Is the share financing provided by Bank Albilad permissible in Sharia, whereby the bank finances the purchase of local shares chosen by the client and places them in a special investment portfolio owned by the bank, then the bank sells these shares to the client at their original price plus a profit margin, provided that the client repays the value of the shares to the bank in monthly installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
There is no objection to this transaction if the shares are permissible. The mechanism of the contract is unproblematic, as it involves the bank first owning the shares and then selling them to the client at a specified price, even if it is higher than the market value, to be paid in installments. The installment amount does not increase if payment is delayed.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/121258
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 121258
- 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