Is the loan provided by the Arab Bank through Sharia-compliant Tawarruq—by selling metals owned by the bank and stored in the warehouses of other companies—considered a permissible loan?

It is permissible to engage in tawarruq, although it is more prudent to avoid it. For this transaction to be permissible, it is stipulated that the bank must acquire ownership of the metals and take lawful possession of them by moving them from their place. Furthermore, the second buyer must be someone other than the bank, and there should be no prior agreement to sell the metals to a specific party. It is not permissible to deal with interest-based banks, as this constitutes cooperation in sin and aggression, unless the bank has a dedicated branch for Islamic transactions that is entirely independent and has a Sharia (definition) supervisory committee well-versed in the rulings of Islamic law and strict in its oversight.