What is the ruling on purchasing building materials in installments from a person who directs me to a merchant and handles his account, then I pay him back with an increase, or dealing with a contractor who owns building materials and trades in them, or undertakes all construction costs and sets the price per meter?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The first scenario is an interest-based loan (riba) because the person pays the price on behalf of the enquirer and then recovers it from him with a guaranteed increase. As for the second scenario, there is no objection to it. It is a type of trade that can be regulated according to the Istisna' contract, whereby the contractor sells the materials on credit for more than their immediate price, and the lease (ijara) is included with the sale of the materials.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/176682
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 176682
- 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