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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/87902
Where this answer came from
- Source platform
- 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.
- Read the full ruling
- Read the full answer on Ftawy