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Students contributing a sum of

Q: A man wants to deposit his money in a bank to invest it, and he chose an Islamic bank, Faisal Islamic Bank of Egypt. It is well-known that in order to permit these banks to work, they have to deposit a percentage of the capital in the International Bank and the Central Bank and both are usurious. However, this person deals with the bank in the way of Islamic Mudarabah transaction (speculative partnership, giving an amount of money to trade with in return for a share in the profit). What is the ruling on the deposited money, taking into consideration that depositor asked the bank clerk about the way of dealings and put him in charge (before Allah). The clerk answered: It is legitimate and does not go against the Shari`ah. (Part No. 14; Page No. 325) Could you kindly advise? May Allah reward you with the best.


A: Dealings with Islamic banks by the way of Mudarabah should be as follows: The depositor should pay the money and the bank just does business with that money in a legal way and the profit should be shared between them according to the stipulation of the general percentage of profits. Mudarabah in this way is legitimate and lawful. Allah knows best. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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