Buying from non-Muslims when Muslim

Q: The Ummah Magazine issued in Doha ( Qatar ) in its issue of the month of Sha`ban 1402 A.H. (June 1982) published a Fatwa (legal opinion issued by a qualified Muslim scholar) on financial transactions held in foreign countries and in Dar-ul-Harb (non-believers country) stating: "Imam Abu Hanifah is of the view that it is permissible to deal in usurious transactions with non-Muslims in Dar-ul-Harb and that all contracts and transactions bringing benefit to Muslims are valid so long as they are based on mutual consent and contain no cheating or infidelity." In fact, if the Fatwa is sound, it will be beneficial to some Muslims residing in France. This is because monetary dues and loans we receive from the Muslim World League in Makkah as well as gifts we receive from Islamic Solidarity Fund and from some Muslim countries remain in banks for a month before they can be drawn. Thus, it is only the bank we deal with who makes use of accumulated interests. If the Fatwa is sound, we can make use of such interests in Darul-Harb which we may at least give to the poor and the needy and to no one else. Allah is the Knower of intentions.

A: First: Contracts of financial transactions and exchanging benefits between us and disbelievers are valid so long as they meet Islamic contract requirements. Second: (Part No. 13; Page No. 20) Dealing in usurious Muslim-to-Muslim or Muslim-to-disbeliever transactions is absolutely prohibited be they disbelievers, Harbis (non-Muslims belonging to a people who are hostile towards Islam) or non-Harbis. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.