What is the ruling of Sharia on the finance lease of the Jordan Islamic Bank?
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.
While examining the close-end lease of the Jordan Islamic Bank, We (Iftaa` Department) were keen on arriving at a form that is free from any violations of Sharia. This was achieved through making use of the Ijtihad of the scholars of the reliable Madahabs and the rules they have established concerning financial transactions in accordance with the conditions stipulated in Sharia.
Consequently, the amended version of the close-end lease of the Jordan Islamic Bank-see attached copy-is permissible and adheres to the conditions established by the Islamic Fiqh Academy in Resolution No. (110) and the Sharia Standard No. (10).
However, it is necessary to pay attention to two issues:
First: The bank should be responsible for adhering to the terms of contract and applying the conditions of Sharia in this regard. Most importantly, the contract shouldn`t be concluded unless after the bank actually purchases the property in question. Rather, the bank should start by making the client sign the promise to complete the transaction, then the original contract.
Second: This contract includes some conditions that should be thoroughly read by all parties, in addition to taking consequent financial obligations into consideration, so that the will to engage in contract is initiated with knowledge and satisfaction.
We can`t fail to express our deepest thanks to the administration of the Jordan Islamic Bank and the Sharia Supervisory Board for their cooperation and understanding of the observations sent from the General Iftaa` Department. We ask Allah for His mercy and forgiveness. And Allah the Almighty knows best.