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The question

Is it permissible to engage in an installment transaction for construction or finishing materials that the engineer purchases for the client, provided that 2% per month is added to the original amount according to the agreed-upon repayment period?

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

This transaction is impermissible if the engineer does not sell the materials to the apartment owner, because it involves explicit usury (riba), as the engineer imposes a usurious interest that multiplies monthly, which is forbidden by Islamic law. The transaction can be corrected by the financier purchasing the materials, bringing them into his possession and responsibility, and then selling them to the customer at a higher price, provided that this price does not increase due to delayed payment or the imposition of a late penalty.

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
111717
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