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Islamic Ruling on Investing in the Islamic International Arab Bank

Answered as per Shafi'i Fiqh by Darul Iftaa Jordan
I have deposited an amount of money into my account at the Islamic International Arab Bank as an investment (IIAB). Is this permissible or not? Moreover, is this amount liable for Zakah although it decreases monthly because the profits aren`t sufficient for my household expenses and I need this money to pay for my daughter`s university tuition fees? It is worth pointing that I don`t have any other source of income.


All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

If the Islamic International Arab Bank (IIAB) deals in Murabah contracts in compliance with the rules of Sharia in this regard, then you (Questioner) are allowed to invest your money there and you don`t incur sin by taking your share of profits, which the Bank distributes among the investors.

On the other hand, if the Bank doesn`t abide by the rules of Sharia regarding Murabaha contracts, then it isn`t permissible to invest your money there. However, you may deposit your money in a current account at that Bank for safekeeping without using it in any non-Sharia compliant Murabah transactions. 

Passing a conclusive ruling on the Murabah transactions conducted by the Islamic International Arab Bank (IIAB) requires examining samples of these contracts (*).

However, you may deal with this Bank under the pretext that it is an Islamic bank and that it, not you, will be liable for any violation of Sharia rules related to Murabah transactions.

No matter what the case may be, Zakah is due on your money once it reaches Nisaab (Minimum amount liable for Zakah) and one full lunar year elapses over possessing that it (Nisaab). This is even if your money is saved to be spent on your household expenses and your daughter`s university tuition, because Zakah has to do with the money itself regardless of the aim behind saving it. The evidence on this point is the general meaning of the verses and Hadiths indicating that Zakah of wealth is an obligation once it reaches Nisaab and a full lunar year passes over possessing that Nisaab.

Accordingly, We (Iftaa` Department) advise you to be keen on giving the Zakah of this amount, be content with the reward from Allah the Almighty, and trust that He will compensate you with that which is better. This is as Allah has promised in the following verse (Which means), " Say: "Verily my Lord enlarges and restricts the Sustenance to such of his servants as He pleases: and nothing do ye spend in the least (in His cause) but He replaces it: for He is the Best of those who grant Sustenance." {Saba`, 39}. And Allah the Almighty knows best.

(*) After having issued this Fatwa, some contracts used by the Islamic International Arab Bank were examined and deemed permissible. As a result, Fatwas were issued to that end. Kindly see Fatwas No. (343) and (932).

This answer was collected from the official government Iftaa Department of Jordan.

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