As per my understanding an Islamic Bank buys a Product

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Date: Sunday, May 15, 2011

Category

Money Matters

Title

As per my understanding an Islamic Bank buys a

Product

Question

As per my understanding an Islamic Bank buys a

product, retains its ownership, sells it to the

prospective buyer at a higher price and once this

price is reached by way of mutually agreed installment

and period, it transfers the ownership.

 

I would like to know whether I can do the same thing

at personal level?

 

I have money lying inbank, since I don’t take

interest, alhamdolillah, the money loses its value due

to inflation. I have to invest this money. What

alternative I have except buy real estate! I am not

much interested in this business as I have seen

several muttakeen goind down the devils’ way.

 

Answer

Muhtaram / Muhtaramah

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.

 

Your understanding is correct. This can also be done in a person’s personal capacity. However, the following should be remembered:

 

1. The prospective buyer is not bound to buy the product.

2. One has to take possession of the item before reselling it.

 

And Allah knows best
Darul Iftaa

Madrasah Inaa’miyya

 

 

· The Sharée ruling herein given is specifically based on the question posed and should be read in conjunction with the question.

· The Darul Ifta bears no responsibility to any party who may or may not act on this answer. The Darul Ifta being hereby exempted from loss or damage howsoever caused.

· This answer may not be used as evidence in any Court of Law without prior written consent of the Darul Ifta.

 

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