What is the ruling of commodity Murabaha in the Jordan Islamic Bank (See enclosed copy)?
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.
The Fatwa Committee of the General Iftaa` Department has reviewed the contracts of Murabaha to the purchase orderer of the Jordan Islamic Bank. It found out that they are based on the conditions stipulated in Sharia and are free of any violations or mistakes that could render the Murabaha contract invalid. Therefore, there is no sin in dealing with these contracts.
However, adherence to the conditions of Sharia as regards the application of this transaction (Commodity Murabah) is the responsibility of the Bank`s clerk, and for each transaction. The bank must buy the commodities from the seller first and take possession of them, then sell them to the purchase orderer (Client) through signing the purchase contract along with the latter. And Allah the Almighty knows best.