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Murabahah

Answered as per Hanafi Fiqh by Askimam.org

Please see the links below for Islamic Banking offered where i live. Does these meet the guidelines to be true islamic finance?

https://www.devonbank.com/asp/general_10.asp

http://www.guidanceresidential.com/the-difference/how-it-works/

http://www.myuif.com/financing/shariah-compliant-home-financing/murabaha-home-financing/

Answer

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

Assalāmu ‘alaykum wa rahmatullāhi wa barakātuh

While the concept of “Murābahah” is in principle an Islāmically viable model for home-financing, the ruling of any particular Murābahah transaction will depend on the clauses in the contract and how it is implemented. Hence, we can only comment on a specific Murābahah transaction once the complete contract is forwarded to us. In its absence, we cannot issue a general answer on its permissibility or impermissibility.

And Allah Ta‘ālā Knows Best

Zameelur Rahman

Student Darul Iftaa
UK

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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