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Resolutions of Iftaa' Board

"resolution No.(307): "Organized Banking Tawarruq is Forbidden from the Perspective of the Higher Objectives of Sharia"

Date Added : 09-01-2022

Resolution No.(307)(15/2021): By The Board of Iftaa', Researches and Islamic Studies:

"Organized Banking Tawarruq is Forbidden from the Perspective of the Maqasid of Sharia"

Date: (25th of Jumada Al Oula, 1443 AH), corresponding to (30/12/2021 AD).

 

In the name of Allah, Most Gracious, Most Merciful

All perfect praise be to Allah, the Lord of the Worlds; may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

On its sixteenth meeting held on the above date, the Board of Iftaa`, Research, and Islamic Studies reviewed the issue of organized banking Tawarruq* or what is sometimes called "Personal Finance" offered by some Islamic banks.

After careful consideration, the Board decided the following:

Unlike conventional banks, Islamic banks rest on meeting the Maqasid of Sharia (The higher objectives of Sharia) as well as observing its rulings. For this, their transactions, in essence, are based on supporting the real economy and applying the methods of investment, which comply with the rules of Sharia.

From the perspective of Sharia, in contracts, intentions and meanings, not words and structures, as well as outcomes shall be taken into consideration, so dealing with organized banking Tawarruq is prohibited  based on the maxim "Prohibition of what may lead to sins", which is, in this case, Riba (Usury/interest). This is in addition to emphasizing that the difference between Islamic and conventional banks isn`t a mere difference of form. Moreover, this Tawarruq will have a negative impact of the Islamic economy because there is no real growth nor rotation of the economic sectors; consequently, many Fiqh academies, Fatwa houses, and the majority of the scholars issued Fatwas prohibiting organized Tawarruq.

During its 19nth meeting/2009 AD, the International Islamic Fiqh Academy issued a resolution prohibiting the organized banking Tawarruq or what is called "The Personal Financing." The reason for this is that there is explicit, implicit, or customary collusion between the financier (Bank) and the customer whereby the latter gets instant cash for a higher amount that he/she owes to the bank, and this is usury per se. We can add that this has been confirmed by the Iftaa` Board of Jordan through Resolution No.(3/2012) which considered organized Tawarruq as a form of circumventing Riba because the real objective is obtaining instant money in return for paying extra amount to the bank.

In conclusion, we confirm this Resolution and rule that Islamic banks must abide by the Sharia-compliant investment methods that achieve the higher objectives of Sharia. And Allah The Almighty Knows Best. 

 

 

Chairperson of Iftaa` Board,

Grand Mufti of Jordan,

Dr. Abdulkareem al-Khasawneh

Dr. Mohammad al-Khalayleh

Prof. Mahmoud al-Sartawi/ Member

Dr. Majed al-Darawsheh/ Member

Sheikh Sa`eid Al-Hijjawi, Member

Judge Samer Al-Khobbaj/ Member

Prof. Adam Nooh Al-Qhodaat/Member

Prof. Amjad Rasheed/Member

Dr. Jamil Khatatbeh/Member

Dr. Ahmad al-Hasanat/ Member

Dr. Mohammad Younis Al-Zou`bi/ Member

 

 

* Tawarruq means a sale contract in which the buyer obtains merchandise on credit and then sells it at a loss to the original seller for cash. And Allah Knows Best

 

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Summarized Fatawaa

Where should a woman who is led by her husband in prayer stand?

All perfect praise be to Allah The Lord of The Worlds                                                                                                                                                                          It is from Sunnah (Prophetic tradition) that she stands behind him. And Allah Knows Best.

What is the Islamic ruling on the aqiqa?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
The 'aqīqah is a confirmed Sunnah (sunnah mu'akkadah). Two sheep are to be slaughtered for a newborn boy, and one sheep for a newborn girl. This is established by numerous Prophetic traditions, among them:
The narration of Samurah ibn Jundub, may Allah be pleased with him, who reported that the Messenger of Allah ﷺ said: "Every child is held in pledge for his 'aqīqah, which is slaughtered on his behalf on the seventh day, and he is named, and his head is shaved." — Narrated by al-Tirmidhī, who graded it as ḥasan ṣaḥīḥ.
And the narration of 'Ā'ishah, may Allah be pleased with her, who said: "The Messenger of Allah ﷺ commanded us to slaughter one sheep as 'aqīqah for a girl, and two sheep for a boy." — Narrated by Aḥmad and Ibn Mājah.
The imperative in these narrations is understood to denote recommendation rather than obligation, based on the ḥadīth of 'Amr ibn Shu'ayb, on the authority of his father, on the authority of his grandfather, who said: The Messenger of Allah ﷺ was asked about the 'aqīqah, whereupon he said: "Allah does not love 'uqūq" — as though he disliked the name itself — and then said: "Whoever has a child born to him and wishes to offer a sacrifice on their behalf, let them do so: two equivalent sheep for a boy, and one sheep for a girl." — Narrated by Aḥmad and Abū Dāwūd.
The legal inference drawn from this narration is that the Prophet ﷺ linked the slaughter to the wish and willingness of the individual, saying: "whoever wishes to offer a sacrifice... let them do so" — thereby indicating that the 'aqīqah is recommended (mustaḥabb) and not obligatory (wājib).
And Allah Almighty knows best.

What is the ruling on water present on the floor of a toilet/bathroom?

The default ruling is the purity of this water present on the bathroom floor. If one is certain or strongly suspects its impurity, then one washes whatever part of the body or clothing this impure water has touched. If one doubts its impurity, the default is purity, and we do not rule it impure based on mere doubt. And Allah the Almighty knows best.

What is the ruling on offering an Udhiyah on behalf of another with their permission?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
It is permissible for a person to offer a sacrifice (Udhiyah) on behalf of someone else with their permission, even if the person performing it has not offered a sacrifice for themselves. It is stated in Sharh Manhaj al-Tullab (Vol.5/P.261) by Zakariya al-Ansari: "No one may offer a sacrifice on behalf of another without their permission... as opposed to when permission has been granted." And Allah the Almighty knows best.

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