Transactions of conventional and Islamic banks in Egypt

Fatawa Question

Al Salam Alaykum I’ve read about considering banks interest as Reba. And I’m asking you to give me clear vision on this issue that would help me to make the right decision InShaAllah. Banks in Egypt claims to give varying interest which is around 9.5 % : 10.5 % these days. I’m not sure if the bank invests all its money in loans with fixed interest or it invests money also in projects that profits the bank. I would like to know what specific transaction of the bank that is considered Reba. I’m an Egyptian studying in USA, I’ve no fixed income right now, and I’ve some money in a bank in Egypt that inherited from my family. The interest of this money represents my main source of income that helps me to cover my living expenses. If banks are based on Riba, then what is the alternative, please advice me if there is Islamic banks that I can invest my money in, I understand that solidifying the money in gold or other fixed assets would not be a right thing to do. Jazakom Allah kheir Alsalam alykom

Fatwa

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Publication Date

2002-04-30

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Investments
• Loans
• Egypt
• Bank deposits
• Usury
• Transactions
• Islamic Banks

Data Type

Fatawa

Language

English

Record ID

BIM-724616

• APA
• MLA
• AMA