What is the ruling on subscribing to the initial public offering of United International Transportation Company (Budget Saudi)?

The business of a car rental and sales company is permissible, but it engages in usurious transactions and prohibited commercial insurance, making it a mixed company. The majority of contemporary scholars, including the Permanent Committee for Issuing Fatwas and the Islamic Fiqh Academy, have ruled that it is forbidden to contribute to mixed companies.

Sheikh Dr. Muhammad Al-Osaimy issued a fatwa (definition) stating the impermissibility of subscribing to this company (Budget Saudi Arabia), clarifying that it has usurious loans and cash amounts in banks that are likely to be interest-bearing. Additionally, there is income from compensation and refunds imposed on customers, which constitutes commercial insurance. Although the company stated its endeavor to finance cars according to Islamic Sharia (definition), this is insufficient, as the company must adhere to Sharia guidelines in all loans and investments.

Al-Osaimy advised those in charge of the company to fear Allah and adhere to Islamic financing and cooperative insurance, and to appoint a Sharia consultant, warning that disobeying Allah's commands is a greater danger than any other economic risks.