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What is the legal ruling on purchasing property in partnership with an Islamic bank, whereby the bank sells its share through a Murabaha (cost-plus financing) contract with installments that include profit?

1 min readAlso available in العربية

There is no objection to an Islamic bank participating in the joint purchase of real estate. There is also no objection to the partner (the questioner) promising the bank to buy its share later through Murabaha, provided that the price is not determined in advance. Rather, it should be at the market price at the time of purchase or at a price agreed upon by them at that time. Agreeing on the price at the beginning of the partnership is not permissible because it leads to the partner guaranteeing the share of his partner and to Riba (usury).

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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