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Resolutions of Iftaa' Board

Resolution No.(34): “Ruling on the Investments of the Social Security Fund for Education through Depositing Funds in Usurious Banks or Purchasing Stocks“

Date Added : 28-10-2015

 
Resolution No.(34): "Ruling on the Investments of the Social Security Fund for Education through Depositing Funds in Usurious Banks or Purchasing Stocks"

Date: 28/11/1413 AH corresponding to 20/5/1993 AD.

The Board has received the following question:

What is the ruling of Sharia on the investments of the Social Security Fund for education, where funds are deposited in the Housing Bank against an interest, stocks are purchased from Jordan-Gulf Bank and General Arabia Insurance Company, development bonds are purchased from Jordan`s Central Bank, debenture bonds of Water Authority are purchased from Jordan`s Central Bank, and stocks are purchased in the Arab International Hotels Company?

Answer: All success is due to Allah.

The Board is of the view that purchasing stocks in a usurious institution is forbidden because it involves employing the invested money in forbidden activities, and this applies to purchasing funds in Jordan-Gulf Bank, development bonds issued by the Central Bank, and debenture bonds of the Water Authority from the Central Bank.

As regards depositing funds in a usurious bank against an interest, such an activity is forbidden as well, and this applies to depositing funds in the Housing Bank against an interest.

However, the permissibility of purchasing shares in companies in general depends on the nature of the activity of such companies, so if the activity is lawful, then purchasing the shares is lawful; if not ,then it isn`t. And Allah Knows Best.

 

Chairman of the Iftaa` Board, Chief Justice Dr.Nooh Al-Qodaat

Acting Mufti General, Sheikh Saeid Hijjawi

Mufti General of Jordanian Armed Forces: Mhamood Shwayat

             Dr. Abdassalam Al-Abbadi

Dr. Ahmad Hilayel

   Dr. Yousef Ghizaan

           Dr. Mahmood Al-Sartawi

             Dr. AbdulAziz Al-Khaiyaat

            Dr. Ibrahim Khash-shaan

       Sheikh Ratib Az-zahir

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Summarized Fatawaa

What is the Islamic ruling on the Udhiyah (sacrificial offfering)?

 
 
Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
The Udhiyah (sacrificial offering) is a Confirmed Sunnah (Sunnah Mu’akkadah) for every adult Muslim of sound mind who possesses the financial means, whether they are a resident, a traveler, or a pilgrim (Haj). This is based on the statement of the Prophet ﷺ: 'When the ten days [of Dhu al-Hijjah] begin and one of you desires to offer a sacrifice, let him not touch [cut] anything of his hair or skin' [Narrated by Muslim].
 
The point of evidence (Wajh al-Dalalah) here is that the Prophet ﷺ linked the sacrifice to the individual's will and desire by saying, 'and one of you desires.' This indicates that it is not obligatory (Wajib); had it been mandatory, he would have simply said, 'let him not touch his hair until he sacrifices' [without making it conditional upon desire].
 
Furthermore, it is narrated that Abu Bakr and Umar (may Allah be pleased with them both) would sometimes refrain from offering the sacrifice out of fear that people might mistakenly view it as an obligatory duty [Narrated by al-Bayhaqi and others with a good (Hasan) chain of transmission]. And Allah the Exalted knows best.

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 is the ruling of Islamic Law on obtaining financing from Islamic banks by bringing invoices in prior arrangement with the seller, then taking the cash after the financing is approved — with the purpose of settling debts and buying a car?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
It appears from the transaction described that its underlying purpose is to obtain cash through resorting to a legal artifice (ḥīlah/tawarruq-style trick), and it is not permissible to engage in such trickery or to coordinate with the various parties merely to obtain liquidity. This is because such artifices bring the sale closer in reality to a ribā-based (usurious) transaction, even if it outwardly appears otherwise.
The Prophet ﷺ said: "Do not commit what the Jews committed, thereby making lawful what Allah has made unlawful through the flimsiest of tricks." This was related by Ibn Baṭṭah in his book Ibṭāl al-Ḥiyal (p. 47), and many scholars have graded it as ḥasan (sound/acceptable).
We have already explained the impermissibility of engaging in such deceptive dealings with Islamic banks in Fatwa No. 516, so please refer to it. And Allah, the Exalted, knows best.

What is the ruling on a Friday sermon in which the khaṭīb did not explicitly exhort the congregation to be conscious of Allah (taqwā) in both sermons, but sufficed with commanding them to obey Allah and refrain from disobeying Him?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
For the Friday sermon (khuṭbat al-Jumʿah) to be valid, certain essential pillars (arkān) must be fulfilled. Among these is the exhortation to be conscious of Allah (waṣiyyah bi-taqwā Allāh), which must be present in both sermons. Alongside this pillar, the praising of Allah (ḥamdallah) and the sending of blessings upon the Messenger of Allah ﷺ are equally required.
Shaykh al-Islām Imām Ibn Ḥajar al-Haytamī, may Allah have mercy upon him, states: "These three are pillars in each of the two sermons, because each sermon is independent and separate from the other." [Tuḥfat al-Muḥtāj,Vol.4/P.447]
It is not a condition that the exhortation be expressed in any specific wording, nor is it required that the word "taqwā" itself be used — such as saying "I exhort you to be conscious of Allah." Rather, this pillar is fulfilled by any expression that contains a command to obey Allah the Almighty and to abstain from what He has prohibited.
Imām al-Khaṭīb al-Sharbīnī, may Allah have mercy upon him, states: "The third pillar is the exhortation to taqwā... The specific wording of this exhortation is not required, according to the most correct view, because the purpose is admonition and the urging of obedience to Allah the Almighty. Therefore, any expression that conveys admonition suffices — whether long or short — such as: 'Obey Allah and be ever mindful of Him.'" [Mughnī al-Muḥtāj,Vol.1/P.550]
Accordingly, what the khaṭīb has done — by commanding obedience to Allah and forbidding disobedience to Him in both sermons — is valid and sufficient. And Allah the Almighty knows best.

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