What is the ruling on Islamic banks financing the purchase of shares with a profit margin taken on the entire purchase amount, such that the money is not handed over to the individual but rather to the brokerage firm, and is it permissible to sell the shares and dispose of the money thereafter?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Two conditions are stipulated for the permissibility of dealing in shares: 1. The company's activity must be permissible. 2. The company must not deposit any part of the shareholders' money in usurious banks.
If these two conditions are met, investment in shares is permissible, and there is no difference between direct purchase or through Islamic banks or brokerage firms. Murabaha sale is only valid if the bank first purchases the commodity for itself and then sells it to the customer.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/69800
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 69800
- 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