Significance Behind Prophet ... Date Added: 10-11-2019

Prophet Mohammad (PBUH): ... Date Added: 07-11-2019

The Four Schools of Islamic ... Date Added: 30-09-2019

The Culture of Building Date Added: 03-02-2019

The General Iftaa` ... Date Added: 25-10-2020

Prophet Mohammad (PBUH) ... Date Added: 24-09-2020

Statement on the so-Called ... Date Added: 30-01-2020

Ijtihad & Taqlid Date Added: 27-01-2020

Search Fatawaa

Subject : Ruling on Murabaha Transaction in Trust Funds of the Ministry of Social Development

Fatwa Number : 552

Date : 18-03-2010

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

What is the ruling of Sharia on Murabaha transaction in the trust funds of the Ministry of Social Development?

The Answer :

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

Having reviewed the instructions of the trust funds management in the Ministry of Social Development, it was made clear to us (Iftaa` Department) that article (14) of the trust funds system stipulates the adoption of Islamic *Murabaha upon granting the loans via the funds. Thus, it isn`t permissible to hand any cash amounts.

Murabaha sale transaction is permissible when it meets the conditions stipulated in Sharia in this regard. As for judging the mechanism through which the trust fund operates, it is imperative to structure a Murabaha sale contract according to the regulations of Sharia to govern the work mechanism between the trust fund and those dealing with it. And Allah the Almighty knows best.

*Murabaha, also referred to as cost-plus financing, is an Islamic financing structure in which the seller and buyer agree to the cost and markup of an asset. The markup takes place of interest, which is illegal in Islamic law





Name *

E. mail Address *


Comment Title *

Comment *


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.