Is it permissible for an Islamic bank to finance individuals to purchase real estate abroad, with the borrower acting as an agent for the bank, receiving the amount, and repaying it with profit in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible for an Islamic bank to appoint the client as an agent to purchase a house that then enters into the bank's ownership, after which the bank sells it to the client in installments with a known profit. This is one of the permissible forms of Murabaha. The agent must present the true total cost to the bank without any increase, because the agent is entrusted, and to avoid riba (usury). If the agent were to inflate the price, a portion of it would become a prohibited usurious loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/38735
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 38735
- 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.
- Read the full ruling
- Read the full answer on Ftawy