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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

Do pregnant and breastfeeding women have to fast?

Pregnant and breastfeeding women are required to fast. However, if fasting causes them harm or unusual hardship, they may break their fast but must make up for the missed days later.
If they break their fast solely out of fear for the fetus or the child, then they must both make up the fast and give fidyah (feeding a needy person for each missed day), as the benefit of breaking the fast was only for the child.

Which is better for a traveler: fasting or breaking the fast?

Fasting is better, unless it causes hardship—in that case, breaking the fast is better.

What are the conditions for a valid Udhiyah?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
First: The age of the animal must meet the Sharia requirements. These requirements vary depending on the type of sacrifice:
 
Camels: Must have completed five years and entered their sixth.
 
Cows: Must have completed two years and entered their third.
 
Goats: Must have completed two years and entered their third. As for Sheep, they must have completed one year and entered their second.
 
Some scholars have permitted goats that have completed one year and entered their second.
 
The Hanafi school, along with an opinion in the Maliki school, permits sacrificing sheep that are at least six months old, provided they are healthy and physically substantial. According to the Shafi’i school, it is permissible if the sheep sheds its front teeth (ajdha') before reaching one year [Al-Iqna’, by Al-Shirbini (Vol.2/P.588)].
 
Second: Soundness and freedom from defects. The animal must be free from any defect that causes a decrease in its meat or market value. This is based on the hadith narrated by Al-Bara' bin 'Azib, that the Prophet (peace be upon him) said:
 
"Four [defects] are not permissible in sacrifices: A one-eyed animal whose blindness is evident, a sick animal whose illness is evident, a lame animal whose lameness is evident, and an emaciated animal that has no marrow in its bones." [Reported by Abu Dawood and Al-Tirmidhi, who graded it as authentic].
 
These defects are detailed as follows:
 
Evident Lameness: It is not permissible to sacrifice a lame animal if the lameness is severe enough to prevent it from walking to the pasture or seeking food, as this leads to a decrease in its meat. However, slight lameness that does not hinder its grazing is overlooked.
 
Evident Blindness (One-eyed): It is not permissible to sacrifice a sheep, cow, or camel that has a white film over its eye blocking light, or one that has lost an eye entirely. Weak vision that does not affect its ability to eat does not prevent the sacrifice from being valid.
 
Evident Illness: An animal with a clear sickness that prevents it from eating or moving is not valid. This includes severe mange (Jarab) that spoils the meat.
 
Extreme Emaciation: An animal so thin that there is no marrow left in its bones is invalid. The standard for emaciation that invalidates the sacrifice is that which spoils the quality of the meat to the point that people would find it undesirable even in times of plenty.
 
Additional Considerations:
These are the defects mentioned in the Prophetic tradition, and any defect that causes emaciation or reduces the meat or value is compared to them by analogy. This includes animals that are mentally unstable (diseased), those with mange, or those with a missing ear. In contrast, a slit or pierced ear does not affect the validity of the sacrifice. And Allah the Almighty knows best.

Is it permissible for a woman to observe voluntary fast without her husband's permission?

A woman is not permitted to observe a voluntary fast (nafl) while her husband is present without his permission.

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