Date : 15-10-2014

Question :

What is the ruling on merchandise Murabaha contract from Cities and Villages Development Bank ?

The Answer :

All perfect praise be to Allah. Blessings and peace be upon Prophet Mohammad: The Iftaa` committee at the General Iftaa` Department reviewed the Murabaha contracts pertaining to Cities and Villages Development Bank and found that they adhere to the Islamic pillars and lack the restrictions and errors that render them invalid; therefore, there is no harm in dealing with them. However, the Bank`s employee is in charge of making sure that the conditions for the validity of such transaction are met, and he should also consider every transaction separately. And Allah knows best.