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The question

What is the Sharia ruling on the dealings of Al Baraka Bank Algeria, which buys a commodity (such as a house) at the request of the buyer, and then sells it to him at a higher price in installments, after the bank guarantees the buyer and verifies the price of the commodity?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

The consideration is for facts and contents, not for names and titles. The Murabaha sale to a purchasing agent, as conducted by Islamic banks, is not a valid sale unless the bank first acquires ownership of the commodity and then sells it to the customer at the agreed-upon price. If the bank merely pays the price of the commodity to the seller without acquiring ownership and title, then this is not a Murabaha sale but rather an usurious loan.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
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Ftawy
Original fatwa ID
87902
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.
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Read the full answer on Ftawy