Is it permissible for a group of Muslim youth in Canada, who are a minority and where no Islamic banks exist, to deal with a conventional bank to obtain financing for a real estate investment project, given that the full price of the land is paid by the partners and part of the construction cost is paid by the buyers, and the bank is a partner in profit and loss, knowing that the amount paid to the bank will be slightly more than the amount received, and is it true that Al-Azhar issued a fatwa permitting such transactions?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The ruling depends on the form of the contract between you and the bank. If the bank will provide a loan with interest (riba), then this is forbidden except in cases of necessity. However, if the bank enters as a partner with a portion of the project's capital and shares in the profit and loss, then this is permissible and there is no objection to it, although this possibility is far from the nature of the work of interest-based banks.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/112195
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- Original fatwa ID
- 112195
- Imported
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