Electricity company saving system

Q: I hope that Your Eminence will kindly have a look at the regulation organizing the savings fund of the Saudi Electricity United Company in the Middle Region and inform me of Allah's ruling on the issue. May Allah guide you, show you the right way and inspire all of us to be right in saying and doing, for He is All-Hearing and Answering!

A: After examining the Fatwa request as well as the law of the savings fund of the Electricity Company in the Middle Region, the Committee gave the Fatwa that the saving fund deals in a usurious transaction as provided for in Article (9) of the law. In fact, the amount paid by employees for the fund is equal to borrowing an interest-bearing loan. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.