What is the ruling on settling Al Rajhi Bank's debt through Bank Albilad using the aforementioned mechanism?
There is no objection to taking this path to settle the debt. The transaction is based on two matters: First, Murabaha (cost-plus financing) in shares, which means that Bank Albilad sells to you, on an installment basis, the shares you choose after it acquires ownership of them. This is permissible, provided that the shares are -compliant, like those of Al Rajhi, Albilad, and Alinma. Second, Tawarruq (monetization) in shares, which means your purchase of shares with the aim of selling them to obtain cash. This is permissible, provided that the shares enter your portfolio and then you sell them yourself. Once the shares are sold and you receive the cash, you can settle your debt, while committing to pay the installment price of the shares to Bank Albilad.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 16417
- 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