Is the Islamic murabaha currently practiced in banks permissible, which involves the bank paying a sum of money to the client in exchange for the bank purchasing shares, metals, or cars, provided that the amount is paid in monthly installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank gives the customer a sum of money to be repaid with an increase, this is usury (riba) and not Islamic murabaha. Islamic murabaha is when the bank buys the commodity and then sells it to the customer in installments at a profit. It is permissible to appoint the bank as an agent to sell the commodity that the customer bought from it after taking possession of it, and to buy shares, metals, or cars with the price of that commodity.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/54487
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 54487
- 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