What is the ruling on working in Islamic financial institutions, and are their transactions - such as Tawarruq - permissible out of necessity or in general, and what is the preponderant opinion concerning them, given the difference in scholars' views?
"Tawarruq" is of two types: genuine (real) and organized. Genuine tawarruq is permissible according to the majority of scholars. It involves purchasing a commodity on deferred payment and selling it for cash to someone other than the original seller at a lower price to obtain liquidity. Organized tawarruq, however, is impermissible because it is a cash financing with an increment and resembles bay' al-'inah (a type of buy-back sale), and it violates the condition of actual possession (qabḍ). A resolution to this effect has been issued by the Islamic Fiqh Academy. The ruling on the questioner remaining in his job depends on the institution's adherence to guidelines. If it adheres, then his staying is desirable. Otherwise, he must leave it. If the matter is unclear to him, he should refer to trustworthy scholars in his country.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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