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The question

What is the ruling on obtaining a loan from an Islamic bank through a contract of buying and selling precious goods that is completed in minutes without seeing or possessing the item?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

The financial transaction known as organized or banking Tawarruq has been deemed impermissible by the majority of contemporary scholars. A resolution prohibiting it was issued by the International Islamic Fiqh Academy due to the fact that the bank carries out a standardized process in which a commodity is arranged to be sold at a deferred price to the mustawriq (the one seeking Tawarruq), on the condition that the bank undertakes, on his behalf, to sell it at a spot price. Therefore, it is not permissible to engage in this transaction.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
176514
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.
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Read the full answer on Ftawy