Is the personal finance transaction, which involves the bank buying Sukuk and selling them to the client at a higher price and in installments, and then the client selling these Sukuk to obtain the financing amount, considered usury or a permissible sale and Murabaha?
The legitimacy of the must be verified. If they are sukuk, then the legitimacy of the Mudarabah must be verified. If the capital for the Mudarabah (Qirad) is a mixture of cash, debts, tangible assets (A'yan), and usufructs (Manafi'), then it is permissible to trade Mudarabah sukuk at a mutually agreed-upon price, provided that tangible assets and usufructs constitute the majority.
If the sale of the sukuk is deemed permissible, then the bank's financing takes two forms: 1. The bank buys the sukuk and transfers them to its portfolio, then sells them to the client in installments with a profit. This is permissible provided that the contract is free from any prohibited conditions and that the sukuk are transferred to the bank's portfolio before being sold to the client. Once the client owns the sukuk, they must sell them themselves and not appoint the bank as an agent. 2. The bank does not buy the sukuk for itself, but rather pays their price on behalf of the client, then demands the price from the client in installments with an increment. This is a prohibited usurious loan.
If the bank does not first buy the sukuk for itself, then the transaction is merely a prohibited usurious financing.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 29836
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy