Can I use the Credit Card, if I duly pay the Bills without Paying Interest (Riba) ?

The first question of Fatwa no. 7425

Q 1: There is a card which facilitates financial transactions in Western countries, as it helps a person to do without carrying cash with them. A person can purchase any goods they want with this card, then at the end of each month they receive a bill with the sum of money they have to pay for what they bought using this card, and they pay the full amount without any increase. This process protects one’s money from being stolen. But there is a condition for receiving this card. Depending on the terms of the card, one may pay interest charges for every day of delay on the amount that they do not pay within twenty five days.

Is it permissible to deal with this card taking into account that a person can avoid dealing with Riba (usury/interest) if they pay the bill during the twenty five days grace period?

A: If the reality is as you have mentioned, then such dealing is not permissible as this contract contains Riba (usury/interest) because you stipulate paying Riba in case of delaying payment.

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’

Member –  Member – Deputy Chairman – Chairman
`Abdullah ibn Qa`ud – `Abdullah ibn Ghudayyan – `Abdul-Razzaq `Afify – `Abdul-`Aziz ibn `Abdullah ibn Baz

http://alifta.net/Fatawa/FatawaChapters.aspx?languagename=en&View=Page&PageID=5036&PageNo=1&BookID=7

Also Read :

Riba (Interest) – Al-Mulakhas al-Fiqhi | Shaykh Salih Fawzan – Abu Muhammad Al Maghribee [Audio|En]

Al-Mulakhas al-Fiqhi (A Summary of Islamic Jurisprudence)

This topic is covered in Volume 2 of the above Book

This is the weekly Monday evening class on the book Al-Mulakhas al-Fiqhi by Shaykh Salih al-Fawzan. We begin with the Book of Trade Transactions, Chapter 6: Riba.

You may download a copy of the original Arabic text here: الملخص الفقهي

As with all of our classes at Masjid Tawheed in Stone Mountain, GA, we encourage you to join us.  If you are not able to attend in person, please feel free to listen in via our Spreaker channel or our telelink line at 712-432-2856.

Part 01 : Listen / Download Mp3 Here (Time 43:32)

Part 02 : Listen / Download Mp3 Here (Time 40:57)

Part 03 : Listen / Download Mp3 Here (Time 46:55)

Part 04 : Listen / Download Mp3 Here (Time 57:10)

Part 05 : Listen / Download Mp3 Here (Time 47:21)

Part 06 : Listen / Download Mp3 Here (Time 45:12)

Posted fromhttp://followthesalaf.com/home/?tag=Al-Mulakhas+Al-Fiqhi

Prohibition of taking Ar-Riba (The Usury)

Chapter 287
Prohibition of taking Ar-Riba (The Usury)

Allah, the Exalted, says:

Those who eat Ar-Riba (the usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: `Trading is only like Ar-Riba, whereas Allah has permitted trading and forbidden Ar-Riba. So whosoever receives an admonition from his Rubb and stops eating Ar-Riba, shall not be punished for the past; his case is for Allah (to judge); but whoever returns (to Ar-Riba), such are the dwellers of the Fire – they will abide therein. Allah will destroy Ar-Riba and will give increase for Sadaqat (deeds of charity, alms). And Allah likes not the disbelievers, sinners. Truly, those who believe, and do deeds of righteousness, and perform As-Salat (Iqamat-As-Salat), and give Zakat, they will have their reward with their Rubb. On them shall be no fear, nor shall they grieve. O you who believe! Be afraid of Allah and give up what remains (due to you) from Ar-Riba (from now onward).” (2:275-279)

Ahadith on the subject are many, including Hadith No. 1615.

1615. `Abdullah bin Mas`ud (May Allah be pleased with him) reported: The Messenger of Allah (sallallaahu ’alayhi wa sallam) cursed the one who accepts Ar-Riba (the usury) and the one who pays it.
[Muslim].

The narration in At-Tirmidhi adds: And the one who records it, and the two persons who stand witness to it.

The Interesting Dream of the Prophet Sallalahu Alahi wa Sallam – Sahih Bukhari

The Dream of the Prophet Sallalahu Alaihi wa Sallam

Sahih Bukhari Volume 9, Book 87, Number 171: [Interpretation of Dreams ] : Narrated Samura bin Jundub:

Allah’s Apostle very often used to ask his companions, “Did anyone of you see a dream?” So dreams would be narrated to him by those whom Allah wished to tell.

One morning the Prophet said,

“Last night two persons came to me (in a dream) and woke me up and said to me, ‘Proceed!’

I set out with them and we came across a man Lying down, and behold, another man was standing over his head, holding a big rock. Behold, he was throwing the rock at the man’s head, injuring it. The rock rolled away and the thrower followed it and took it back. By the time he reached the man, his head returned to the normal state. The thrower then did the same as he had done before. I said to my two companions, ‘Subhan Allah! Who are these two persons?’ They said, ‘Proceed!’

So we proceeded and came to a man Lying flat on his back and another man standing over his head with an iron hook, and behold, he would put the hook in one side of the man’s mouth and tear off that side of his face to the back (of the neck) and similarly tear his nose from front to back and his eye from front to back. Then he turned to the other side of the man’s face and did just as he had done with the other side. He hardly completed this side when the other side returned to its normal state. Then he returned to it to repeat what he had done before. I said to my two companions, ‘Subhan Allah! Who are these two persons?’ They said to me, ‘Proceed!’

So we proceeded and came across something like a Tannur (a kind of baking oven, a pit usually clay-lined for baking bread).” I think the Prophet said, “In that oven there was much noise and voices.” The Prophet added, “We looked into it and found naked men and women, and behold, a flame of fire was reaching to them from underneath, and when it reached them, they cried loudly. I asked them, ‘Who are these?’ They said to me, ‘Proceed!’

And so we proceeded and came across a river.” I think he said, “…. red like blood.” The Prophet added, “And behold, in the river there was a man swimming, and on the bank there was a man who had collected many stones. Behold. while the other man was swimming, he went near him. The former opened his mouth and the latter (on the bank) threw a stone into his mouth whereupon he went swimming again. He returned and every time the performance was repeated, I asked my two companions, ‘Who are these (two) persons?’ They replied, ‘Proceed! Proceed!’

And we proceeded till we came to a man with a repulsive appearance, the most repulsive appearance, you ever saw a man having! Beside him there was a fire and he was kindling it and running around it. I asked my companions, ‘Who is this (man)?’ They said to me, ‘Proceed! Proceed!’

So we proceeded till we reached a garden of deep green dense vegetation, having all sorts of spring colors. In the midst of the garden there was a very tall man and I could hardly see his head because of his great height, and around him there were children in such a large number as I have never seen. I said to my companions, ‘Who is this?’ They replied, ‘Proceed! Proceed!’

So we proceeded till we came to a majestic huge garden, greater and better than I have ever seen! My two companions said to me, ‘Go up and I went up’ The Prophet added, “So we ascended till we reached a city built of gold and silver bricks and we went to its gate and asked (the gatekeeper) to open the gate, and it was opened and we entered the city and found in it, men with one side of their bodies as handsome as the handsomest person you have ever seen, and the other side as ugly as the ugliest person you have ever seen. My two companions ordered those men to throw themselves into the river. Behold, there was a river flowing across (the city), and its water was like milk in whiteness. Those men went and threw themselves in it and then returned to us after the ugliness (of their bodies) had disappeared and they became in the best shape.” The Prophet further added, “My two companions (angels) said to me, ‘This place is the Eden Paradise, and that is your place.’ I raised up my sight, and behold, there I saw a palace like a white cloud! My two companions said to me, ‘That (palace) is your place.’ I said to them, ‘May Allah bless you both! Let me enter it.’ They replied, ‘As for now, you will not enter it, but you shall enter it (one day)

I said to them, ‘I have seen many wonders tonight. What does all that mean which I have seen?’
They replied, ‘We will inform you:

As for the first man you came upon whose head was being injured with the rock, he is the symbol of the one who studies the Quran and then neither recites it nor acts on its orders, and sleeps, neglecting the enjoined prayers.

As for the man you came upon whose sides of mouth, nostrils and eyes were torn off from front to back, he is the symbol of the man who goes out of his house in the morning and tells so many lies that it spreads all over the world. And

those naked men and women whom you saw in a construction resembling an oven, they are the adulterers and the adulteresses;,

and the man whom you saw swimming in the river and given a stone to swallow, is the eater of usury (Riba) and

the bad looking man whom you saw near the fire kindling it and going round it, is Malik, the gatekeeper of Hell and

the tall man whom you saw in the garden, is Abraham and the children around him are those children who die with Al-Fitra (the Islamic Faith).”

The narrator added: Some Muslims asked the Prophet, “O Allah’s Apostle! What about the children of pagans?” The Prophet replied, “And also the children of pagans.”

The Prophet added, “My two companions added,

‘The men you saw half handsome and half ugly were those persons who had mixed an act that was good with another that was bad, but Allah forgave them.’”

Source:Sahih Bukhari Volume 9, Book 87, Number 171: [Interpretation of Dreams ]

The Ruling about having shares in companies and banks – The Permanent Committee

Question:

What is the ruling about having shares in companies and banks’? And is it permissible for a shareholder (in a company or a bank) to sell shares, specifically after he has become a shareholder himself, to offices dealing in buying and selling (stockbrokers)? And from that which is possible is selling them (the shares) for more than the price that the shareholder paid. So what is the ruling about the profit which the shareholder makes every year from the value of the shares bought?

Response:

Having shares in banks and companies that trade in ribaa is not permissible. And if the shareholder wants to rid himself of any ribaa in his shareholding, then he should sell his shares at market value and take the initial investment only. The rest he should give in charity, and it is not permissible for him to take anything from the profits of his shareholding or interest. However, if the shareholding was in a company which does not trade in ribaa, then it’s profits are halaal.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez ibn Abdullaah ibn Baaz;
Member: ‘Abdullaah ibn Ghudayyaan;
Member: Shaykh ‘Abdullaah Ibn Qu’ood
Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 508, Fatwa No.8996

Having shares in the Islaamic Bank – The Permanent Committee

Question:

The Islaamic Bank has shares for sale and the value of each share is one hundred and ten US dollars ($110). And that which we have understood is that the bank in question does not trade in ribaa and that the money from the sale of the shares will be used in trading activities which are free from any dealings in interest. The profits will then be divided amongst the shareholders. So out of concern of falling into that which is impermissible, we request you to give a fatwa about whether this is permissible or not.

Response:

It is permissible to have shares in a bank which does not trade in ribaa, and the profits which accrue from these shares are the result of trading which is not haraam , so it is halaal.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez ibn Abdullaah ibn Baaz;
Member: ‘Abdullaah ibn Ghudayyaan;
Member: Shaykh ‘Abdullaah Ibn Qu’ood

Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 507, Fatwa No.4512

Ruling about life and property insurance : Ibn Baz

 Question:

What is the ruling on Insurance, wether it be life insurance or property insurance?

Answer:

Insuring one’s life and property is forbidden; it is not permissible due to the fact that Al-Gharar (Uncertainty, Risk or Speculation) and usury are involved therein. And Allah – the Almighty the All-Powerful – has forbidden all types of dealings that involver usury and dealings in which there is Al-Gharar (Uncertainty, Risk or Speculation), as a mercy for the (muslim) community and a protection for them for what is harmful to them. Allah – Most Glorified, Most High says:

“where as Allah has permitted trading and forbidden riba” (usury). Al-Baqarah 2:275

And it has been authentically reported from the Messenger of Allah (sallAllaahu ‘alayhi wa sallam) that he forbade selling AL-Gharar. And Allah is the granter of success.

Shaykh `Abdul-`Azeez Bin Baz
Fatawa Islamiyah, volume 5 / page 19

Forbidden Business Transactions : Shaikh Saalih Al-Fawzaan

A Transcribed Lecture of Shaikh Saalih bin Fawzaan Al-Fawzaan
Translated by abu maryam isma’eel

[Dowload PDF of Forbidden Business Transactions in Islaam- Shaykh Fawzan- Al-Ibaanah.com]

Introduction to the Book

All praise is for Allaah and may the peace and blessings of Allaah be on His Final Messenger, his family and those who follow him in goodness until the Day of Recompense. To Proceed.

This is a translation of a small booklet entitled Al-Buyoo’ al-Munhee ‘anhaa fil-Islaam” [Forbidden Business Transactions in Islaam] by the noble scholar of Saudi Arabia, Shaikh Saalih bin Fawzaan Al-Fawzaan, may Allaah preserve him. The original source for this book was a recording of a lecture he gave in 1411H in a masjid in Saudi Arabia . The book was chosen due to the importance of this topic amongst Muslims in the West. This is because as the number of Muslims in the lands of the West increase and the communities grow, the need for instituting Muslim-owned businesses that will support and benefit these Muslim communities also grows.And since it is not befitting for the Muslims to engage in matters without knowledge, we felt a need to present this small but informative book to our readers for the purpose of providing knowledge on those matters, which Allaah and His Messenger have warned us against and forbidden with regard to everyday business transactions. You will find that this treatise is not only intended for the businessman who buys merchandise and sells to his customers, but also for the purchasers who buy the products. The Shaikh spends much of the time focusing on several products that are forbidden to buy, sell and promote, but yet which have found their way into Muslim communities in large quantities, such as music, alcohol and cigarettes. We hope that every Muslim benefits from this book, by avoiding buying or selling those products that have been forbidden and abstaining from conducting business schemes that are against Islaam.

Written by: isma’eel alarcon on April 26, 2002

In the Name of Allaah, the Most Merciful, the Bestower of Mercy

From the Lecture:

All praise be to Allaah, Lord of the Worlds, and may the peace and blessings be upon the chief of all Messengers and upon his family and all of his Companions.

This is a short treatise on the subject of Prohibited types of business transactions, which has been compiled so that the Muslim can avoid them in his daily affairs – so that his earnings can be from the lawful, which Allaah will benefit him with in this life and the next. Originally, the source for this treatise was a lecture I gave at Masjid Sumoo Walee al-‘Ahd Al-Ameer ‘Abdullaah bin ‘Abdil-‘Azeez Aali Su’ood in Riyadh in the month of Jumaadal-Oolaa 1411H. The following is the transcription of that lecture:

O Brothers! There is no doubt that commerce and business are two things that are required and necessary. This is because Allaah has commanded us to seek after gaining provision and sustenance for ourselves according to the proper channels generally. And specifically, He said concerning commerce (i.e. buying and selling):  “But Allaah has permitted trading and forbidden interest (Ribaa).” [Surah Al-Baqarah: 275]

And He says:  

“O you who believe, when the prayer is called for on the Day of Jumu’ah, then rush to the Remembrance of Allaah and leave off the trading (commerce). That is better for you if you did but know. And when the prayer is finished then spread throughout the land and seek from Allaah’s Bounty and remember Allaah much in order that you may be successful.” [Surah Al-Jumu’ah: 9-10]

And Allaah says, praising those who combine between their seeking of sustenance (rizq) and their performing of worship:

“In houses (masaajid), which Allaah has ordered to be raised, and in which His name is mentioned. He is glorified therein during the mornings and the evenings. Men whom neither business nor commerce diverts them away from the Remembrance of Allaah, nor from performing the Prayer or giving the Zakaat.” [Surah An-Noor: 36-37]

In this ayah, Allaah states that from the attributes of the Muslims is that they buy and sell (i.e. they trade). But when the time for prayer comes, they leave off the buying and selling and head for the prayer.

“Neither trading nor business diverts them away from the Remembrance of Allaah.” [Surah An-Noor: 37]

Allaah has commanded us to seek after the means of sustenance (rizq) along with the command to worship Him, as He says:

“So seek your provision from Allaah and worship Him (alone). And be grateful to Him, to Him you will return.” [Surah Al-‘Ankaboot: 17]

So conducting business by buying and selling or any of the other types of permissible ways of earning provision is something that is required according to the Religion since tremendous benefits will result from that for both the individual and the society.

Buying and Selling, in itself, are both praiseworthy and necessary, so long as they do not cause harm to one’s worship or cause him to delay performing the prayer in congregation in the masaajid.

The Prophet (sallAllaahu ‘alayhi wa sallam) said:

The honest and trustworthy businessman will be with the prophets, martyrs and righteous people.”

This means: The businessman who buys and sells while being honest will be with these groups of people on the Day of Judgement. This is a great position, which indicates the nobility of holding such an occupation. And the Prophet (sallAllaahu ‘alayhi wa sallam) was once asked as to which kind of earning was the most purest? So he responded:

A blessed trading (accepted by Allaah) and the labor a man does with his hand. [Reported by At-Tabaraanee]

The Prophet (sallAllaahu ‘alayhi wa sallam) also said:

“The two persons conducting a business are in a state of goodness so long as they do not separate from one another. So if they are both honest and open with one another, they are blessed in their transaction. But if they lie and conceal (the truth), the blessing of their transaction is wiped out.”

So doing business while being honest and righteous is from the best ways of earning sustenance. As for conducting business with lies, fraud, swindling and deception, then this is from the worst forms of earning sustenance.

The Prophet (sallAllaahu ‘alayhi wa sallam) once passed by a group of Muslims who were buying and selling in the marketplace of Madeenah. So the Prophet (sallAllaahu ‘alayhi wa sallam ) said:

“O you gathering of traders!” So they raised their heads waiting to hear what he would say. He said: “Indeed the traders will be resurrected as sinful evil-doers (fujaar) except for those who fear (are dutiful to) Allaah, are righteous and honest.” [Reported by At-Tirmidhee who said it was hasan saheeh]

The Prophet himself (sallAllaahu ‘alayhi wa sallam) engaged in business transactions during the first part of his life, when he used to manage the money of Khadeejah. This was before the advent of his prophethood. And he would buy and sell and gain profit.

This was the same for the Companions of Allaah’s Messenger – they would buy and sell and trade. And there were found wealthy people amongst them who used their wealth to support the Jihaad in Allaah’s Cause, such as ‘Uthmaan bin ‘Affaan (radyAllaahu ‘anhu) who supplied the poor in the army with equipment. And such was ‘Abdur-Rahmaan bin ‘Awf (radyAllaahu ‘anhu) who would donate money to the Muslims at the time of need and at the time of Jihaad.

And such was Abu Bakr as-Sideeq (radyAllaahu ‘anhu) for he would buy and sell and sacrifice his wealth to support Islaam and the Muslims, from the time he was in Makkah before migrating, as well as after migrating. He would give away much and much of his wealth for the Cause of Allaah.

Therefore, seeking the means of sustenance according to the permissible channels the greatest of which are buying and selling – has much good in it.

However, this buying and selling must be set with religious guidelines, so that the Muslim can avoid falling into forbidden transactions and unlawful forms of earning.

The Prophet (sallAllaahu ‘alayhi wa sallam) has forbidden us from certain types of business transactions due to what they contain from sinful means of earning and what is found in them from dangers to mankind and the taking of wealth unjustly. From these types of prohibited transactions are:

  • When the buying and selling keeps one preoccupied from performing worship , i.e. they take away from the time of the worship, such as when a person is busy buying and selling and holds back from praying in congregation in the masjid, to the point that he misses it or misses part of it. This is forbidden. Allaah says:

“O you who believe, when the prayer is called for on the Day of Jumu’ah, then rush to the Remembrance of Allaah and leave off the trading (commerce). That is better for you if you did but know. So when the prayer is finished then spread throughout the land and seek from Allaah’s Bounty and remember Allaah much in order that you may be successful.” [Surah Al-Jumu’ah: 9-10]

And Allaah says in another ayah:

“O you who believe! Do not let you wealth or your children divert you from the Remembrance of Allaah. And whoever does that, then such are the losers.” [Surah Al-Munaafiqoon: 9]

Take note of Allaah’s saying: “…then such are the losers.” He rules upon them that they are losers even though they may be wealthy, having amassed hoards of money even if they may have many children.This is because their wealth and their children cannot replace what they missed out on from the Remembrance of Allaah. So even if they gain a profit or earn income in this world, they will still be losers in every sense of the word. They can only be profiting in reality if they combine between these two good things. If they were to combine between the seeking of sustenance and the worship of Allaah, by buying and selling when it is time for buying and selling and attending the prayer when it is time for prayer, then they would have combined between the good of this life and the good of the Hereafter. And they would have acted on Allaah’s saying:

 “So seek your provision from Allaah and worship Him (alone)”

and His saying:

 “So when the prayer is finished then spread throughout the land and seek from Allaah’s Bounty.”

 Therefore, commerce is of two types – the commerce of the worldly life and the commerce of the next life (Hereafter). The commerce of this life is with wealth and with earnings while the commerce of the next life is with righteous actions. Allaah says:

“O you who believe, shall I not direct you to a trade (i.e. commerce) that will save you from a painful punishment? Believe in Allaah and His Messenger and strive hard and fight in the Cause of Allaah with your wealth and your lives. That will be better for you, if you but knew! (If you do so), He will forgive you your sins and admit you into Gardens under which rivers flow and pleasant dwellings in the gardens of ‘Adan (i.e. Paradise). That is indeed the great success. And He will also give you another (blessing), which you will love – help from Allaah and a near victory. So give glad tidings to the believers.” [Surah As-Saff: 10-13]

This is the immense commerce, which is profitable. So if the permissible commerce of this worldly life is attached to it, it becomes good upon good. But if a person limits his commerce to solely that of this worldly life while abandoning the commerce of the Hereafter, he becomes a loser, as Allaah says: “…then such are the losers.” [Surah Al-Munaafiqoon: 9]

Therefore, if a person were to turn his attention to performing worship and establishing

the prayer, and if were to remember Allaah much, by doing what Allaah commanded him to do, Allaah would surely open the doors of sustenance for him. As a matter of fact, the prayer is a means for attaining sustenance (rizq), as Allaah says:

“And command your family with prayer and be patient in offering them. We are not asking you to provide Us with sustenance (rizq). (Rather), We will provide for you and the good end is for those who have Taqwaa.” [Surah TaHa: 132]

So the prayer, which some people claim takes time away from them seeking after the rizq (sustenance) and from buying and selling, is in fact the opposite of what they claim. It opens for them the door of provision, comfort and blessing. This is because the sustenance (rizq) is in the Hand of Allaah. So if you were to turn your attention towards remembering Him and worshipping Him, He would facilitate and open the door of sustenance for you. “And Allaah is the best of Providers.” [Surah Al-Jumu’ah: 11]

Allaah says, describing the worship of the believers:

 “In houses (masaajid), which Allaah has ordered to be raised, and in which His name is mentioned. He is glorified therein during the mornings and the evenings. (They are) Men whom neither business nor commerce diverts them away from the Remembrance of Allaah, nor from performing the Prayer or giving the Zakaat. They fear a day when the hearts and the eyes will be overturned out of fear (of the horrors of the Day of Judgement).” [Surah An-Noor: 36-37]

In explanation of this ayah, some of the Salaf said: “They (the Sahaabah) would buy and sell, but when one of them heard the mua’dhin calling to prayer, and the scale was still in his hand, he would drop the scale and head out for the prayer.” So as stated before, the point is that if the buying and selling preoccupies you from performing your prayer, then this commerce is forbidden and futile. And the money earned from it is Haraam (unlawful) and filthy.

  • And from the forbidden types of business is: Selling a forbidden commodity. This is because when Allaah makes something forbidden, He also makes taking money for it forbidden, such as when someone sells something that is forbidden to be sold.

Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) forbade that dead animals, khamr (i.e. wine), swine and statues be sold .So whoever sells dead animals, i.e. meat for which no prescribed Zakaat was given, then he has sold a dead animal and earned unlawful money. This goes the same for selling khamr. What is meant by the word khamr is everything that intoxicates, based on the Prophet’s saying:

 “Every intoxicant is khamr and every kind of khamr is Haraam (unlawful).”

 And he (sallAllaahu ‘alayhi wa sallam) cursed ten people with regard to khamr, as is recorded in the authentic hadeeth:

“Verily Allaah cursed khamr – the one who produces it and the one for whom it is produced, the one who sells it and the one who buys it, the one who drinks it and the one who earns from the sale of it, the one who carries it and the one who it is carried to, and the one who serves it.” [Reported by At-Tirmidhee and Ibn Maajah]

Khamr is every type of intoxicant regardless of whether it is called khamr or alcoholic beverages or liquor or wine or whiskey. It doesn’t matter if it is called by any of these or other names – changing the name does not change the fact that it is khamr. It has been reported in a hadeeth that: “There will come a people during the Last days that will call khamr by another name and drink it.” Also, what is worse than this is selling narcotics, such as hasheesh and opium, as well as other types of drugs, which are being dealt out to the people in these days. So the one who sells it and deals it is a criminal – in the eyes of the Muslims and in the eyes of the whole world. This is because drugs kill people, so it is like a destructive weapon.

Therefore, anyone who sells drugs or distributes it or assists in its distribution all of them fall under the curse of Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam). And taking money from it is from the wickedest of acts and the most detestable of gains. Furthermore, the one who deals drugs deserves to be executed because he is one of those who cause mischief in the land.

The same goes for selling cigarettes and qaat (leaves that are chewed in Arabian lands). Cigarettes are harmful and they cause diseases to occur. In fact, all of the characteristics of khubth (wickedness) are gathered together in cigarettes. There is no benefit in smoking in any way whatsoever. Its harms are many. The one with the worst kind of breath, the most despicable appearance and the most burdensome to accompany out of all people is the one who smokes cigarettes. If he sits next to you or he rides next to you in a car or on a plane, you feel constricted by the smoke he makes and its foul stench. The odor coming from his mouth is bad enough when he breathes in your face, so how much more so if he were to smoke in your presence and the cigarette smoke were to float in your face! The matter would be worse. So smoking is wicked from all perspectives and there isn’t any benefit found in it. Therefore, it is forbidden without any hesitation or doubt. It is unlawful to smoke based on several perspectives, not just one.When one smokes, he throws away money and wastes time. Cigarettes disfigure the face, blacken the lips and stain the teeth. As for the diseases that are caused by it, then they are many. Many people have been afflicted by it and yet they take it lightly and as something trivial. This is even to the point that some are suffering from its effects even though they never smoked and they hate smoking. However, they sold it to the people because they loved to make money any way they could. But these people don’t know that this type of business spoils all of their earnings, because some of them mix the money they make from it with their business and so they spoil it, since (doing this) is forbidden and disobedience (to Allaah). Sustenance is not to be sought from Allaah through disobeying Him. Rather, sustenance and provision are to be sought from Allaah by way of obeying Him. Whatever Allaah has ordained for you from rizq (sustenance) will surely come to you. If you seek after it while being obedient to Allaah (in all that He commands and prohibits), He will facilitate and bless your wealth.

  • Another type of forbidden business is: Selling musical and entertainment instruments in all of their various forms, such as stringed instruments and wind instruments or musical appliances and all of the instruments that are used for that purpose, even if they are called by other names such as “technical apparatuses.”

So it is Haraam (unlawful) for the Muslim to sell these instruments and appliances because it is an obligation to destroy them and not have any of them remain in the lands of the Muslims. So if this is the case, how can they be sold? And how can one take money for them? This is from the forbidden acts!

  • And from the forbidden types of business transactions is: Selling images (i.e.pictures, statues). The Prophet (sallAllaahu ‘alayhi wa sallam) forbade us from selling statues, and what was intended by statues was (all life) images. This is because originally statues are based on image representations, regardless of whether it is representing horses, birds, animals or human beings. Everything that has a spirit (rooh), then selling an image of it is Haraam, and the money made from it is Haraam.

The Prophet (sallAllaahu ‘alayhi wa sallam) cursed the image-makers and he informed us that they will be the ones with the worst and most severe punishment on the Day of Judgement. Likewise, it is not permissible to sell magazines that are filled with pictures, especially if these magazines contain immoral pictures (i.e. of naked women). This is because along with the fact that they contains pictures, which are forbidden, they also serve as fitnah (temptation) and an incitement towards doing evil acts. This is since when a man looks at a picture of a beautiful girl who is exposing some of her features or she is uncovering some of her body (i.e. naked), then most of the time this will rouse the man’s desires. And these desires will lead this individual to commit lewd and criminal acts. This is exactly what the devils amongst mankind and the jinn hope for by the distribution and sale of these pictures.

Also, from a higher perspective, is selling immoral movies (i.e. pornographic films), especially videotapes, which the Muslim communities have poured into the arena of their homes. These movies display images of naked women in them as well as images of lewd and immoral sexual acts! These movies tempt and incite the young men and women and cause them to be raised upon loving this kind of immorality.

Therefore, it is not permissible to sell these kinds of lewd films. Rather, it is binding upon you to prevent, destroy and distance these films away from the Muslim environments.

So anyone who opens a store to sell (or rent) these immoral videotapes, he has in fact opened a place for the disobedience of Allaah to be conducted and he has earned unlawful and illegal money, if he uses it or spends it on his family. Rather, he has opened up a place of fitnah (mischief) and a fortress for the Devil.

  • And also from the forbidden types of business transactions is: Selling Tapes in which are recorded immoral songs, with the voices of male and female singers accompanied by music. And these songs consist of words that talk about lust, infatuation and craze for women. So it is forbidden (Haraam) to listen to, record and sell these songs. And taking money for it is considered unlawful earnings and illegal gains, which Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) forbade severely since they spread evil and immorality. And they corrupt one’s manners and transport evil into the homes of the Muslims.
  • And from the forbidden types of business transactions is: Selling something which the buyer will use towards committing Haraam. So if the seller knows that the buyer will use the product he is buying to commit some forbidden act, then selling it to him is forbidden and void. This is because you will be assisting him upon sinfulness and transgression, and Allaah says:

“And help one another towards piety and fearing of Allaah, and do not help one another towards sinfulness and transgression.” [Surah Al-Maa’idah: 2]

So for example, if someone buys grapes or dates for the purpose of making wine from them, or he buys a sword for the purpose of killing Muslims with it or for the purpose of committing highway robbery or to be tyrannical or a troublemaker and so on.

Everyone that will use a product against what Allaah has forbidden or will use it in a way Allaah has forbidden, then selling that product to him is not permissible. This is if one knows for sure that the buyer will do that or he suspects for the most part that he will do that.

  • And from the forbidden types of business transactions is: When a man sells something that he doesn’t own. For example, a man goes to a businessman looking for a specific product, but this businessman doesn’t have this specific product. Yet they both agree to a contract (for the sale of the product) and agree on the extent of the price (on the item) presently or in the future. And all the while, the product is not found in the possession of the businessman or the buyer. Then the businessman goes and buys this product and hands it over to the buyer after they already agreed to a price and they made a contract and determined the value as it relates to present terms or in the future.

So this kind of business transaction is haraam. Why? Because he sold something he didn’t own and he sold something before gaining possession of it, if the product was specified. As for if the product was not specified and its price was delayed, he actually sold a debt on credit. The Messenger of Allaah (sallAllaahu ‘alayhi wa sallam) forbade us from doing that, as was the case when Hakeem bin Hazaam (radyAllaahu ‘anhu) came to him, saying: “O Messenger of Allaah, what if a man comes to me wanting to buy something from me, but I don’t have it. Then I go to the marketplace and buy it for him?” The Prophet (sallAllaahu ‘alayhi wa sallam) said: “Do not sell what you don’t have.” This is a clear cut forbiddance, therefore it is not permissible for a person to sell some specified commodity unless he is in possession of it before making a contract on it, whether he will sell it right there or in the future.

It is not permissible to take this matter lightly. So whoever wants to sell something to the people, then he should store the products in his store or in his shop or in a warehouse or in the trunk of his car or in his office, so that he can have the products ready with him. Then if some people who want to buy the products come to him, he can sell it to them directly or at a later time.

  • And from the forbidden types of business transactions is: The ‘Aynah Transaction.What is the ‘Aynah Transaction? It is when a product is sold to a person for a deferred price (i.e. a raised price to be paid later), then that same product is bought back from him at current value less than the deferred price for which it was given to him. So when the time comes in which the deferred payment is due, he pays his creditor in full. This is what is known as an Al-‘Aynah Transaction. It is called ‘aynah (i.e. derivate of ‘ayn = same) because the same product that was sold is returned back to its owner. This is Haraam because it is deceiving someone into interest (Ribaa). In reality, it is as if you are selling dollars at the current price for deferred dollars (i.e. to be given later), which are more than the original amount. And you are just using the product as a device or means to gaining this interest.

It is an obligation on you if you are owed money by someone, because you sold him some product for a deferred price that you let him sell it to someone else, or that you let him act freely in the matter – if he wishes he can keep it or if he wishes he can sell it to someone else, if he is in need of the money. The Prophet (sallAllaahu ‘alayhi wa sallam) said: “When you deal with al-‘aynah transactions and you hold onto the tails of cows and you are pleased with the agriculture, Allaah will send humiliation down upon you. He will not remove it from you until you return back to your Religion.” [Reported by Abu Dawood and it has supporting evidences]

  • And from the forbidden types of business transactions is: An-Najash. What is meant by an-Najash is when you display a product for sale in a public auction. Then a person comes and bids up the price of the item, but he doesn’t intend to purchase the item, rather he only wants to raise the price for the customers intending to deceive the buyers. This is the same whether he agreed with the seller to do this or he did it on his own. So whoever bids for a product and he doesn’t want to buy it, rather he only wants to raise its price for the customers, then this person is a Naajish, who has opposed the prohibition of Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam). Doing this is Haraam, as the Prophet (sallAllaahu ‘alayhi wa sallam) said: “And do not perform Najash on each other.”

1 [Translator’s Note: Another example is if you sell an item that is worth $25 to someone for $50 because he will pay you next month and not now. This may be agreed because perhaps you feel the value of the item will go up by then. But for some reason, the buyer is short of money and wants to sell the item back to you, so he comes to you the next day and you make him sell it to you for the current market price, which is still $25. So when the date, next month, on which you agreed he would pay you the $50 comes, he pays you the money. So altogether you make $25 apart from the item, which is considered interest.]

So a person who has no desire or need for the item, he should not participate in the auction and not bid for it. Instead, he should leave the customers, who really desire the item, to outbid each other.

Perhaps a person may want to help the seller, and sympathy for the seller overcomes him. So he bids up the price of the item for the purpose of helping the seller according to his perception. Or perhaps, the seller may agree with a group of his associates to create a crowd around the item for sale in order to draw the people’s attention. These acts are considered from Najash and are Haraam because they are a means of deceiving the Muslims and a way of taking their money unjustly.

Also, the scholars of Fiqh have stated that what falls under Najash is when a seller tells his customer: “I bought this item for such and such price”, lying about the price, so that the buyer may be fooled and buy the item at an increased value. Or it is when the seller says: “I was given this product at this price” or he says: “I received it for this much”, lying about the price. He only wants to fool the customers into bidding the price up to reach this alleged and false price, which he claims he spent for the item. This is from the Najash, which Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) forbade. It is a treachery and deception of the Muslims, and it is lying and disloyalty, for which he will be accountable for before Allaah. So what is obligatory on the seller is that he reveals the truth if the buyer asks him how much he got it for. He must tell him the truth and not say that he attained it for this much money, lying about the price. What also falls into the definition of An-Najash is if the people of the marketplace or the storeowners agree to not outbid one another when an item is presented for sale, for the purpose of forcing the owner to sell it for a (discounted) cheaper price. So therefore, they are all participating in this act, which is Haraam. And this is from An-Najash. It is also a form of taking the people’s money unjustly.

  • And from the forbidden types of business transactions is: When a Muslim conducts a sale on top of the sale of his brother. The Prophet (sallAllaahu ‘alayhi wa sallam) said: “And none of you should conduct a sale on top of the sale of his (Muslim) brother.” How is this done? It is done, for example, when a person who wants to buy a certain product comes and buys it from one of the businessmen, who gives him the option to finalize the deal in two or three days or more. So in this case, it is not permissible for another businessman to come and interpose, saying to the buyer: “Leave this product. I will give you the same item, even better than it, for a cheaper price.” This is Haraam because he is conducting a sale on top of the sale of his brother.

Therefore, so long as he sells him the item and gives him the option (to finalize the deal later), let him obtain it and do not interfere in the deal. If he wishes, he will take the product, and if he wishes, he will cancel the deal. So if he calls off the deal due to his own choice (i.e. not being coerced or influenced), then there is nothing preventing you from selling it to him (now). (On the opposite end) conducting a purchase over his purchase is also Haraam. So if a Muslim comes and buys a product from one of the businessmen for a fixed price and is then given the option for a period of time (to finalize the deal), it is not permissible for another buyer to interfere by going to the businessman or the seller, saying: “I will buy that product from you for a higher price than that person bought it from you.” This is Haraam because these kinds of transactions cause harm to the Muslims and violate their rights and puts hatred into their hearts (for one another). This is since if a Muslim comes to know that you interfered in his transaction and you were the cause for ruining the deal that was between the two of them, he will be filled with hatred, spite and abhorrence for you. Or perhaps he may even supplicate against you, because you have oppressed him. And Allaah says: “And work with one another upon piety and fear of Allaah. And do not work with one another upon sin and transgression.” [Surah Al-Maa’idah: 2]

  • And also from the business transactions that are forbidden is: The Deceptive Sale, which is when you deceive your Muslim brother by selling him a product that has defects and you know about these defects yet you do not inform him about them. So this kind of sale is not permissible and it is from deception, swindling and fraud. It is obligatory on the seller to make these defects clear to the seller and to let him know about them. But if he fails to inform him about them, then this is from deception and swindling, which Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) forbade in his saying: “The two persons conducting a business transaction are in a state of goodness for as long as they do not separate from one another. So if they are both honest and open with one another, they are blessed in their transaction. But if they lie and conceal (the truth) from one another, the blessing of their transaction is wiped out.”

So it is obligatory upon us, O servants of Allaah, to be sincere. Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) said:

“The Religion is sincerity, the religion is sincerity, the religion is sincerity.”

They (the Companions) said: “To who O Messenger of Allaah?” He said: “To Allaah, to His Book, to His Messenger, to the Muslim leaders and the Muslim general masses.”

So the Muslim must be sincere. What is meant when one is sincere towards something is that he is free or absolved from certain things. So being sincere means being free from cheating (for example).

One time the Messenger of Allaah (sallAllaahu ‘alayhi wa sallam) passed by a person selling some food in the marketplace who had his food in a pile. So the Prophet (sallAllaahu ‘alayhi wa sallam) put his noble hand inside the pile of food and found some wet portions in the bottom of the pile. So he said: “What is this O owner of the food?” He said: “The sky has affected it” – meaning the rain has affected some of it. So Allaah’s Messenger (sallAllaahu ‘alayhi wa sallam) said: “Then won’t you make it visible so that the people can see it? Whoever cheats us (i.e. swindles Muslims) is not from us.”

This hadeeth is considered one of the fundamental principles in conducting business transactions between the Muslims. So it is not permissible for a Muslim to conceal the defects. If his merchandise has a defect then he must make it visible so that the buyer sees it and is aware of it, and so that he could acquire the item for a price that is appropriate for this defect. He must not acquire the item for the price it would be if it were flawless, for then the seller would be deceiving, cheating, fooling and swindling, based on the saying of Allaah’s Messenger: “Then won’t you make it visible so that the people can see it? Whoever cheats us is not from us.”

So O servants of Allaah! How much of swindling do you see in these days? How many times do you see people placing the defective items in the bottom of the containers and cases while placing the good items on the top – whether vegetables or food items? They purposely put the defective item in the bottom while putting the flawless item on the top. This is trickery, which is done intentionally.

We ask Allaah to pardon and forgive us and you, and that He make our rizq (sustenance) Halaal and that He make our earnings Halaal. And we ask Him to provide us from His vast Bounty.

O Allaah suffice us with what You have made Halaal over that which You made Haraam, and (suffice us) with Your Bounty over that of others besides You. And forgive us, have mercy on us and accept our repentance. Verily, You are the One who accepts Repentance, the Bestower of Mercy. And may the peace and blessings of Allaah be on Allaah’s Messenger.

Buying goods using debit cards : The Permanent Committee

Question:

I hope your excellencies can advise us about using Saudi Net (debit) cards when buying items from stores in the following manner: When the total sale price is agreed upon, for example SR150 (riyals), the card is presented to the salesman who passes (“swipes”) it through a machine he has in the store. The (total) value of the transaction is then debited instantly by transferring the amount from the buyer’s account to the vendor’s account in the same instant, i.e. before the buyer leaves the store.

Response:

If the matter is as you describe, then there is no harm in using the mentioned card, so long as the buyer has sufficient funds in his account to cover the required amount (of the sale).

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Fataawa, comprising –
Head: Shaykh ‘Abdul ‘Azeez Ibn Abdullaah Ibn Baaz;
Member: Shaykh ‘Abdul-‘Azeez Aal ash-Shaykh;
Member: Shaykh Saalih Ibn Fowzaan;
Member: Shaykh Bakar Ibn ‘Abdullaah Abu Zayd
Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa., – Volume 13, Page 527, Fatwa No.18521

Receiving Monthly Pension after Retirement from Public Sector

Q 3: What is the islamic ruling on someone who works in the public sector, although we all know that most of the money of the government is the produce of usurious dealings and alcohol selling. Is it lawful to have a government job? Civil workers seek to benefit their family from the pension they receive after he dies as no pension is provided for freelance working. We live in a country where there is no Bayt-ul-Mal (Muslim treasury).

A: There is nothing wrong in working in a non-Muslim country as long as the kind of work done does not involve disobeying or helping to disobey Allah. There is nothing wrong with you receiving your salary from the mixed treasury of the state. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’
Member Member Deputy Chairman Chairman
`Abdullah ibn Qa`ud `Abdullah ibn Ghudayyan `Abdul-Razzaq `Afify `Abdul-`Aziz ibn `Abdullah ibn Baz

Fatwas of the Permanent Committee>Group 1>Volume 14: Transactions 2>Chapter on lease contracts>A Muslim serving a Kafir
(Part No. 14; Page No. 479)
The third question of Fatwa no. 5488

Regarding the asl of pention

Q 1: I was enrolled in the Egyptian Armed Forces as a volunteer from September 1967 A.D. till January of 1981 A.D., and served in the Army for approximately thirteen years. They used to deduct part of my monthly salary to cover insurance and pensions. This was obligatory. After Allah guided me to understand Islam, I resigned, and thanks to Allah, my resignation was accepted. However, they started paying me 56.54 pounds as a monthly pension. A brother told me that the money of this pension is Riba (usury) and that I must refuse it. Is this correct? What is the correct ruling concerning this pension?

A: If the reality is as you mentioned, it is permissible for you to take the retirement pension as it is a reward for the period you served in the government.

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta’
Member Member Deputy Chairman Chairman
`Abdullah ibn Qa`ud `Abdullah ibn Ghudayyan `Abdul-Razzaq `Afify `Abdul-`Aziz ibn `Abdullah ibn Baz

Fatwas of the Permanent Committee>Group 1>Volume 23: Oaths>Vows>Imamate>Rulership and Al-Siyasah Al-Shar`iyyah>Retirement pension
The first question of Fatwa no. 7121

A new convert paying to the bank its dues before entering Islam – Permanent Committee

Q: The submitter says he has recently converted to Islam. He had bought a house before he converted to Islam through a transaction widely prevailing in the West. To clarify, he paid a certain amount of the price in advance and borrowed the remainder on credit. Knowing that a Muslim may not pay or receive interest, he inquires about the ruling on interest that he has to pay for that loan.

A: If the reality is as you have mentioned, the person in question should submit his new status to the authority from which he took the loan asking it to take back only the capital, i.e. without interest, as interest is prohibited according to Islam. Doing so is more precautionary and frees him from accountability for paying the usurious interest. If the borrowing authority approves of it, it will be alright, praise be to Allah. Otherwise, he will have to pay the interest stipulated in the contract he had signed before converting to Islam.

May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!

Permanent Committee for Scholarly Research and Ifta’

Member     Member     Deputy Chairman     Chairman
`Abdullah ibn Qa`ud     `Abdullah ibn Ghudayyan     `Abdul-Razzaq `Afify     `Abdul-`Aziz ibn `Abdullah ibn Baz

Source : alifta.com

Making Ribaa (interest) permissible in the west – Shaykh Ahmed al-Wasaabee

Shaykh Ahmed al-Wasaabee warns us of evil callers who make ribaa “halal,” evil callers such as Qaradaawe, Siraaj Wahhaaj

Question to Shaykh Ahmed al-Wasaabee: Some youth try to tell us that ribaa (interest) in the west is permissible. And they attribute this to al-Qaradaawee. So what is the ruling on the one who follows these types of rulings? And other people in the west have made similar statements, such as Siraaj Wahhaaj, and others like him. This is a very common thing, as many youth say that ribaa is permissible in the west because of necessity (i.e. you cannot purchase a house without a mortgage, and if you do not purchase a house, the Muslims will be in a state of weakness!, etc.).

Shaykh Ahmed al-Wasaabee: Allaah (subhaana wa ta’laa) has completed our deen for us. Allaah’s statement:

This day, I have perfected your religion for you, completed My Favour upon you, and have chosen for you Islam as your religion. (Al-Ma’idah 5:3)

So our deen is perfect, and it is perfect in every time and every place. So the one who has given the fatwa that working with ribaa, and eating ribaa is allowable in the lands of the west, then he is from amongst the people who are following the footsteps of shaytaan. And it is waajib upon us and the Muslims to enter into al-Islaam fully. And to accept al-Islaam in its entirety, in all of its forms, all of its orders, and all of its prohibitions. Allaah’s statement:

O you who believe! Enter perfectly in Islam (by obeying all the rules and regulations of the Islamic religion) and follow not the footsteps of Shaitan (Satan). (Al-Baqarah 2:208)

So the ones who issued these fataawa, allowing ribaa in the lands of the west, then they are indeed following in the footsteps of shaytaan. And the deen of al-Islaam must be established and performed in all places, in Yemen, and in Makkah, and in Britain, and in America, and other than them; and the deen is not to be established in certain places and to be left off in other places.

And the ruling of ribaa is clear. Allaah (subhaana wa ta’laa) said: O you who believe! Be afraid of Allaah and give up what remains (due to you) from Ribaa (usury) (from now onward), if you are (really) believers. (Al-Baqarah 2:278)

And if you do not do it, then take a notice of war from Allaah and His Messenger. (Al-Baqarah 2:279)

And He (taa’ala) said:

Those who eat Ribaa (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: “Trading is only like Ribaa (usury),” whereas Allaah has permitted trading and forbidden Ribaa (usury). So whosoever receives an admonition from his Lord and stops eating Ribaa (usury) shall not be punished for the past; his case is for Allaah (to judge); but whoever returns [to Ribaa (usury)], such are the dwellers of the Fire – they will abide therein. (Al-Baqarah 2:275)

And the Prophet (salallaahu ‘alaihiwasallam) said, “Every time a person increases in ribaa, then the end of his issue is to littleness and nothingness.”

And the Prophet (salallaahu ‘alaihiwasallam) did not make a distinction in these hadeeths, and Allaah (subhaana wa ta’laa) did not make a distinction in these ayaats, regarding times and places. And this is applicable to every time and to every place.

And the ones who change the deen and make it applicable in certain times and certain places, then they are the ones who follow their desires. Allaah’s statement:

Have you seen him who takes his own lust (vain desires) as his ilaah (god), and Allaah knowing (him as such), left him astray, and sealed his hearing and his heart, and put a cover on his sight. (Al-Jathiyah 45:23)

So it is waajib upon the believers to fear Allaah in these issues. Allaah’s statement:

Say (O Muhammad (salallaahu ‘alaihiwasallam) to these polytheists): “Tell me, what provision Allaah has sent down to you! And you have made of it lawful and unlawful.” Say (O Muhammad (salallaahu ‘alaihiwasallam)): “Has Allaah permitted you (to do so), or do you invent a lie against Allaah?” (Yunus 10:59)

And verily, the people who allow ribaa in the west have made a lie upon Allaah (suhbhaana wa ta’laa). And they have no justification for what they say. And the clear verses and the clear commands of Allaah and His Messenger are present. And there is no room for anyone to twist and modify them according to certain times and places. And these fataawa are false and far astray, and they come from the people who are not cautious in their deen. And my advise is that we do not ask about our deen except from the Ahlul-‘Ilm, the people known to be upon the Kitaab and the Sunnah, the Ahlus Sunnah wal-Jama’ah. And we do not ask about our deen from the Ahlul-Bidaah, such as Yusuf al-Qaradaawee, and others like him. So they are never to be asked about affairs of our deen, and never to be depended upon in their legal opinions. And they are to be warned against.

And Islaam calls the disbelievers to enter into al-Islaam, and calls them to fulfil the orders of Allaah (subhaana wa ta’laa) and to leave off His prohibitions. And from His prohibitions is ar-ribaa.

[And the shaykh warned us about these callers of evil (those who issue rulings making ribaa permissible in the west), and that they should be warned against, and to be stay away from.]

In summary, ribaa is not permissible in the west.

Benefit: It is not permissible to put money in banks that deal with ribaa. However, out of necessity, if a person fears that his money may be stolen, or that it may be robbed, or that it may be taken from him (if he does not place it in a bank); then in this instance, the ‘Ullema, like Shaykh ‘Abdul ‘Azeez ibn Baaz and others have issued fataawa that it is permissible for people to put their money in banks that deal with usury in order to secure their money. This is with the condition that they are not allowed to earn interest on this money. But if this fear is not a reality, then it is not allowed for any Muslim to place his money in banks that deal with ribaa, even if he fulfils the condition that he does not earn interest on his money. For verily, the banks benefit from those who place money in their banks.

Source: Al-Qawl-ul- Mufeed Fee Adillatit Tawheed [Beneficial Speech in Establishing the Evidences of Tawheed], in the Q&A at the end of the 20th Chapter (The Danger of Ascribing Shirk with Allaah)

Ruling on medical insurance made by institutions and companies on the employees and their families – alifta

Source : alifta.com – Issued by the Permanent Committee

Q: Some private companies and businesses offer medical insurance to their employees and their families. To provide this service, they make an agreement with some private hospitals. This agreement is as follows:

1- The company pays the hospital a fixed monthly amount of 100 Riyals for each employee, regardless of the number of times they visit the hospital to have treatment.

2- The hospital is responsible to treat the employees, giving them the necessary medications and performing surgery for them when necessary. It is important to mention that the hospital spends more than 100 Riyals some months on treating an employee, especially when the person has an operation.

At other times, an employee may not visit the hospital at all and thus, does not benefit from the 100 Riyals or he may benefit only from a small amount. The question now is: First, is this type of medical insurance permissible or does it involve uncertainty and deception?

Second, does this kind of insurance fall under the permissible Ji’alah (payment for a permanent job, not a fief) as some researchers have said (i.e., Majallat Al-Buhuth Al-Fiqhiyyah Al-Mu`asirah, “Contemporary Jurisprudence Research Journal”, issue no. 31)? Third, what are the characteristics of a lawful cooperative medical insurance?

A: The transaction mentioned in the question falls under the category of prohibited commercial insurance, which involves uncertainty, deception and devouring people’s money falsely. The permissible cooperative medical insurance is to establish a charity fund that is paid to help the needy and sick people without the donor expecting any financial benefit from it. Giving the money to the fund should only aim at helping the needy, and hoping for the Reward of Allah (Exalted be He). May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!

Permanent Committee for Scholarly Research and Ifta’
[Issued by the Permanent Committee, Fatwa no. 19399]

Buying Shares in Companies which Deals with Riba (interest) – Shaykh Muhammad ibn Saalih al-‘Uthaymeen

Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah have mercy on him) was asked about the ruling on buying shares in companies.

He replied:

Buying shares in companies is subject to further discussion, because we have heard that they put their money in foreign banks, or quasi-foreign banks, and take interest on it, which is a kind of riba. If this is true then buying shares in them is haraam and is a major sin, because riba is one of the worst of major sins. But if it is free of this then buying shares is halaal, so long as there is nothing else involved that is haraam according to sharee’ah. End quote.

Majmoo’ Fataawa Ibn ‘Uthaymeen (18/question no. 119).

Don’t miss to read the below interesting analysis : (excerpted from the net)

Take the top 500 corporate giants of India which are basically engaged in Halal business and their end products and services too are Halal. One shall be astonished to look at the capital structure of these companies as more than half of the capital of these companies comes from debt instruments such as interest carrying debentures, secured loans and other borrowing from commercial banks and financial institutions. In fact a company is said to be based upon strong fundamentals whose debt-equity ratio is in the range of 60:40 to 70:30. And nearly all these 500 companies conform to this criterion mostly. The moot point here is can a company be bracketed under Halal business concerns just because its finished goods and services are Halal even though the majority of its capital and finance comes from debt and interest-carrying loans. Take these top 500 Halal companies again. It is a bare fact that these companies park their reserves and surplus capital in high-yield and fixed income debt instruments and government securities. And sometimes the returns from these investments far exceed the income from their declared business. Corporate giant, Tata Iron and Steel Company which is ranked second in terms of market capitalization and weightage on the Sensex of the Bombay Stock Exchange is a classic case whose main income in the early 90’s came from such investments under the sub-head “Other Income”.

Viewed from yet another angle, a good company’s capital, as stated earlier, mainly consists of nearly 40 per cent equity and 60 per cent debt. At times of boom in the economy, companies usually earn more than 100 per cent on their investments. But they pay back their debtors only the pre-determined interest of say 20 per cent and pass the benefit of the remaining 80 per cent to their equity share holders besides their own 100 per cent entitlement. Under this scenario the profit-sharing of the debtors and the equity share holders would be 20 per cent and 220 per cent respectively. Conversely, at times of economic recession, companies could hardly earn anything, and even the debt servicing has to be met with from the share of the equity share-holders such as company reserves and further borrowing. In the former case if the equity share holders get abundantly benefited from the Haram investment of the debtors, in the latter case, it is the turn of their Halal investment to get the raw deal at the hands of the Haram one. The fundamental question here is does Islam permit the intermingling of Halal and Haram investments with such dire consequences, and that too of the present magnitude? The plain and unambiguous answer is a simple “no”. How can the stock-market trading be termed Halal then?