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Is it Permissible to Purchase a House Via Al Rayan Bank?

Answered as per Hanafi Fiqh by Darulfiqh.com


Is it Permissible to Purchase a House Via Al Rayan Bank?

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

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


The Home Purchase Plan products offered by al Rayan Bank have been signed off as Shariah compliant by Al Rayan’s Sharia Supervisory Committee.  This includes competent and reputable Shariah scholars in the Islamic Finance industry such as Sheikh Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Muhammed Saleh Yaqoobi and Mufti Abdul Qadir Barkatulla.  One may follow their approval and use the services of al Rayan Bank.

Product development and Shariah advisory on Islamic finance products is a very specialised industry.  To sign off a product as Shariah compliant or to reject the Shariah compliancy of any product requires a number of expertise.  One needs to have knowledge, proficiency and literacy in at least the following areas:
1)   Fiqh al-Mua’malāt (Transactional laws of Shariah)
2)   Usul al-Fiqh
3)   Regulation and governance
4)   Economics
5)   Experience in the financial industry
6)   Understanding of legal issues in the jurisdiction of operations

Therefore, the above scholars are reputable and well-grounded in Islamic finance and other necessary areas for practice.  One may follow their approval and use the facilities of al Rayan Bank.  Some issues may not be understood by all or may be open for debate, nevertheless, as it is an issue of ijtihad and reasoning, you may follow their approval and certification.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam,
5th December 2016
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This answer was collected from DarulFiqh.com, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).

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