Alternatives to interest : interest and Murabahah

Fatawa Question

Dearest brother and respected Shaikh, I pray that Allah continues his blessing upon you and accepts your truly valuable work Fisabilillah, and grants you the highest ranks in Jannah, In Sha Allah. Amin. We are an Islamic Television Channel established in the UK, to be broadcasted on Sky and Cable by the end of this year, In Sha Allah. Our programs are structured around three key strands ; Informative, educational and entertaining within the platform of the Islamic Shari’ah. The core aims of the channel are to provide a unique platform for the Muslim Ummah and also counter the western and non-Islamic media and propaganda, with the will and help of Allah almighty. Now to the question : We are currently doing a program for a series called the business hour, and the topic for next week's program is : Islamic Finance and Halal Investments. There will be three guests on the program, two of them are the Managing Directors of Two Islamic Banks and one of them is Brother Tarek al-Dewani, who wrote a book titled "Problems with Interest". The questions concerned are as follows : 1) Is it prohibited for Person A to transfer 100 dollars to Person B on condition that Person B transfers 110 dollars to Person A in one year's time ? 2) Is it prohibited for person A to transfer 100 dollars to Person B on condition that Person C transfers 110 dollars to Person A in one year's time ? 3) is it prohibited for person A to pay 100 dollars to Person B for a car, on condition that Person C shall immediately buy that car from Person A for 110 dollars payable in one year's time ? (The cash flows from A's perspective on all three of these contracts are the same, but some [a and b] are clearly interest whilst c is the standard Murabahah contract used widely in Islamic finance). These questions will be presented to all three quests for profiling during the program, therefore we would like to know the stance of the scholars on the following case-study which we then can reveal to the audience. I would be very grateful if you may email the answers to me please. Finally, If you have any enquires regarding the Channel or the program, then please do not hesitate to contact me on this email address : admin@Channelislam.tv with many thanks, Jazak Allah Khairan. Wassalam. Syed

Fatwa

Click hereto view more

Publication Date

2002-03-15

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Resale on profit
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-726705

• APA
• MLA
• AMA