Selling by instalments to the one who issued instructions to buy

I went to someone who has no money to buy a bedroom set for my marriage, then he went with me to the merchant and bought the bedroom set for me for a certain amount. Then he sold it to me by instalments for a higher price than the price for which he bought it. This kind of transaction happens with many people; each person identifies the item he wants to buy, then he buys it for him and sells it to him by instalments. Please note that this person is not specialised in any particular trade. Is this riba?.

Praise be to Allaah.

This transaction is known as a muraabahah transaction for the one who gives instructions for the purchase. Dr. Muhammad ‘Abd al-Haleem ‘Umar said in his paper at-Tafaaseel al-‘Amaliyyah li ‘Aqd al-Muraabahah, which was published in the fifth edition of Majallat Majma‘ al-Fiqh al-Islami:

Muraabahah may be done in one of two ways that were defined in classical fiqh. They are:


This may be called the general or original form. This is when someone buys an item for a certain price, then he sells it to another person for the original price plus an extra amount of profit. In this case he is buying it for himself without any prior request from anyone else, then he offers it for sale on the basis of muraabahah.  Continue reading

Taking part in a knowledge quiz in return for an expected prize

I arrange a knowledge quiz twice monthly, its description is as follows:
1- Each competitor sings up by paying100 SR. This gives him the right to participate in the competition for life’s time.
2- I use this money gathered by singing up in successful projects. Then I distribute the profits to the competitors, I do not give profits from the actual money gathered by signing up.
3- I give a prize values 5000 SR to every winner. Winners are 3 in every 1000.

Praise be to Allaah.

It is not permissible to organize this quiz or to take part in it, because it is based on riba. The money that is paid to you is considered to be a loan, not a deposit, because a deposit is preserved as is, and is not disposed of, whereas a loan means taking the money and giving something else back in return, and if the loan brings some stipulated benefit to the lender, then it is riba. The benefit in this case is winning a prize; were it not for that people would not give their money to you.  Continue reading

He bought shares in a company then he found out that it deals with riba

I bought shares thinking that the company does not deal with interest. Then I found out that it has money in banks that deal with interest. What shall I do with these shares?.

Praise be to Allaah.

You have to sell them and get rid of them, and there is no sin on you in that, because you did not know that they are haraam.

Shaykh Dr. Muhammad ibn Sa’ood al-‘Usaymi was asked about that and he replied:

Praise be to Allaah and blessings and peace be upon the Messenger of Allaah and his family and companions. Continue reading

Ruling on dealing in currencies in the FOREX system and paying fees for delaying the deal

Is it permissible to deal in currencies in the foreign exchange market (forex) over the Internet? What is your opinion regarding the issue of tabiyeet (stipulating interest for not using the deal at the same day)? What is also your opinion about the clearing process which is to delay submitting one to two days after the contract ends.

Praise be to Allaah.

It is permissible to deal in currencies if the deal is done hand to hand and the transaction is free of conditions that stipulate riba, such as the stipulation of fees for delaying the deal, which is interest that is charged to the investor if he does not take a decision concerning the deal on the same day.  Continue reading

Ruling on buying shares in the Chemanol company

What is the ruling on buying shares in the Chemanol company?.

Praise be to Allaah.

The Chemanol company manufactures and markets formaldehyde and its derivatives, and materials for improving concrete, which is work that is basically permissible, but it also has some riba-based dealings, which puts this company in the category of “mixed companies”, which are those whose activities are basically permissible but they engage in some haraam transactions. Most contemporary scholars have issued fatwas stating that it is haraam to buy shares in this type of company, and that the shareholder will be a partner in the sin of those haraam transactions.  Continue reading

Ruling on subscribing to the Middle East Specialist Cable company

What is the ruling on subscribing to the Middle East Specialist Cable company?.

Praise be to Allaah.

The activities of the Middle East Specialist Cable Company are basically permissible, as it produces industrial cables, control cables, cables for use in fire-fighting, fire-resistant cables, information transfer cables, and high tech cables that are used in oil, gas and petrochemical projects, electrical power stations, desalinization plants and other industrial projects.

But the accounts of this company show that it deals with riba-based loans, which makes it come under the heading of what are called “mixed companies”, i.e. companies whose activities are basically permissible but they engage in some haraam transactions.

Most contemporary scholars have stated that it is haraam to buy shares in these companies.  Continue reading

He wants to get out of the investment fund but they stipulated that he must leave some money in it

I had some money that I put in the Post Office investment fund, and left it there for some time, then I realized that the profit that this money produces is nothing more than riba, so I went to withdraw the money and close the account, but the Post Office employee told me that I could not cancel it completely, and that I had to leave ten (Egyptian) pounds at least, even though the amount of interest that I collected was only twenty pounds. I withdrew the money and gave ten pounds of it to the mosque, and I regarded what was left in the account (ten pounds) as being the rest of the interest. Is what I did correct?.

Praise be to Allaah.


It is not permissible to subscribe to the investment fund that gives a fixed percentage of the money deposited in it, because this is riba which Allaah and His Messenger have forbidden. This is no different from the riba-based banks except in name only, and you have done well to get out of it.  Continue reading

Ruling on subscribing to the Petro-Rabigh company

What is the ruling on subscribing to the Petro-Rabigh company?.

Praise be to Allaah.

This company’s activities include oil refining and petro-chemical manufacturing, which are permissible activities, but this company has taken out riba-based loans, and it puts its money in riba-based banks.

Based on that, this company comes under the heading of “mixed companies” whose work is basically permissible, but they engage in haraam transactions, such as riba and so on. Most contemporary scholars are of the view that it is haraam to buy shares in this type of company. This was stated in a fatwa by the scholars of the Standing Committee for Issuing Fatwas in the Land of the Two Holy Mosques. A statement to that effect was also issued by the Islamic Fiqh Council of the Organization of the Islamic Conference, and the Islamic Fiqh Council of the Muslim World League.  Continue reading

Profit sharing and investing in al-Raajihi shares

What is the ruling on profit sharing (mudaarabah) and investing in shares of al-Raajihi Bank?.

Praise be to Allaah.

It is permissible to engage in profit-sharing and investment in shares of al-Raajihi bank so long as they are pure shares and not mixed (i.e., shares in purely halaal ventures). Dr. Muhammad al-‘Usayni (may Allaah preserve him) included shares in al-Raajihi among his list of permissible shares. Continue reading