Is it permissible, in Sharia, to liquidate a percentage of the value of a bank guarantee to use it for the execution of a project, then disburse the remaining value after completion, knowing that the bank does not take any material consideration for that, or is this considered usurious lending?

A bank guarantee is an undertaking by a bank to pay a certain amount to another party upon the client's request when entering a tender or executing a project. It is permissible in Islamic law because it is either a kafala (suretyship/guarantee) or a wakala (agency). The resolution of the Islamic Fiqh Academy states that it is a kafala if it is uncovered (uncollateralized), and a wakala if it is covered (collateralized). The bank is permitted to request a pledge (collateral) in exchange for the guarantee. There is no disagreement regarding the permissibility of liquidating the value of the guarantee or a percentage of it if the bank does not take a material fee, as this is considered a guarantee without a pledge. As for the origin of the guarantee in this manner, if the bank takes possession of the amount as a pledge without disposing of it, it is permissible. However, if it takes possession of it as a loan and disposes of it, it is not permissible because it is a loan that draws a benefit (interest).