We need to be educated about Islamic banks

Fatawa Question

Dear scholar, Assalam-O-Alaikum i know that interest is prohibited in Islam. every Muslim scholar is saying that taking interest is Haram as well as doing job in a bank is also Haram, but where and what is the alternate system ? is there any alternate system available in this world. as far as i know all banking system is based on interest. how can a person survive in this modern world without being involved in this system. I am living in Saudi Arabia but here also the banking system is based on interest. It is the responsibility of all Muslim scholars to device an interest free banking system which can take up the presently interest based banking system and this transition will be gradual not abruptly. I wanted to invest some money but i have no knowledge of any business, and if i give this money to somebody for business he will give some profit for some time and then he will say that all the money has been lost in business. I have seen this thing happening many times. If a person has retired from his job at the age of 60yrs and he is given some money from his department at the time of retirement(Gradtuity) and he has 5 daughters to marry, at the age of 60 he cannot do any work. Now if he will not invest this gratuity in some scheme in a bank this money will finish in less than 5yrs, than what will he do? If everyone will stop investing in banks than whole economy will collapse. If you have any solution for this problem, please tell me.

Fatwa

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Publication Date

2003-01-21

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic economics
• Banking
• Usury
• Banking services
• Islamic Banks

Data Type

Fatawa

Language

English

Record ID

BIM-724584

• APA
• MLA
• AMA