Asalam Alykum! I wanted to ask you that can I buy a car by financing it from the Islamic bank. I dont have enough money to buy a second hand car on cash the best option that I have is to finance it. I could have used other means of transport but requirment of a car in UAE is a must especially in my type of job. please suggest me wht to do. Many ppl say that even islamic banking now adays is fake and all the profits that are calculated are on the same basis as in the Non islamic banking system. Thank you, May ALLAH bless all Muslims with his mercy and Jannah
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
We understand your predicament.
There are many Islamic Banks in the UAE which offer Islamic Finance products like Sharjah Islamic Bank (SIB), Noor Islamic Bank, Dubai Islamic Bank (DIB), Al-Hilal Islamic Bank, Emirates Islamic Bank, etc. Such banks do have a “Rent to Buy” facility where a prospective client may hire a vehicle/car over a period of time and thereafter receive an option to purchase the car once of for a minimal sum of money.
Nevertheless, we have not analyzed any of their Islamic Finance products, therefore we cannot comment on their Shari’ah Compliancy.
We advise you to obtain the contractual agreements of the Islamic Finance product you wish to obtain from such banks and submit them to us for our review.
And Allah Ta’āla Knows Best
Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.