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Resolutions of Iftaa' Board

Resolution No.(49) "Ruling on Financing the "Diminishing Partnership" Offered by the Central Bank to its Employees"

Date Added : 16-12-2015

Resolution No.(49): "Ruling on Financing the "Diminishing Partnership" Offered by the Central Bank to its Employees"
Date: 24/4/1422 AH, corresponding to 15/7/2001.

What is the ruling of Islamic Sharia on the diminishing partnership system offered by the Central Bank to its employees?

Answer:

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

Over several sessions, the Board has reviewed the above issue and arrived at the following view:

Employees of Islamic banks and others can obtain dwellings by one of the following formulae:

First: Murabaha in favor of the purchaser where the employee covers the costs of the construction team; whereas, the bank covers the cost of materials which can be bought through the Murabaha transaction so that they become possessed and guaranteed by the bank. This formula can be employed for purchasing a flat or a building in line with the rules of Murabaha.

Second: Istisna` (making on customer`s order). Here, the bank provides the needed financing in line with the conditions of this form of transaction whereby a flat or a building could be built.

However, the formula, in the above question, presented to the Iftaa` Board: "The Diminishing Partnership" and the attached contract differ from a similar contract that had been approved by the Board where the law had defined it as: (The bank participates as a financing partner- partially or completely-in a project of an expected income on basis of agreeing with the other partner that the bank receives a percentage from the net of the actual income while maintaining the right to keep the remaining part of the profit or some of it, to be agreed upon, to cover the original amount of financing it had provided.) 

In other words, the income of the project, which is based on the aforementioned contract, is the one expected upon the conclusion of the contract itself and the determiner of the expected income is the market, after the completion of the project.

First: it isn`t permissible to estimate that revenue in relation to the financing amount provided by the bank, which settles it on basis of the diminished interest, as is the case of the contract presented to the Board. From the perspective of Sharia, that interest is unlawful although it is low.

In order for this formula to become valid, it isn`t correct to calculate the expected revenue in the manner mentioned above; rather, it should be left to the market.

Since the employees desire to have dwellings for residence and since these won`t be offered for leasing, then the Sharia alternative is that a committee of trustworthy and honorable experts estimate the rent of similar premises after the project is finished based on  actual estimation of the prices of similar houses and flats. In conclusion, it is imperative that the contract is rewritten on the basis that draws a distinction between the acceptable and the unacceptable form in Sharia, this is of course if the employee and the bank wish to resort to the above formula "The diminishing partnership", or they can simply resort to other formulae mentioned above. And Allah Knows Best.

 

Chairman of the Iftaa` Board, The Supreme Judge, Sheikh Izuldeen At-Tamimi

Dr. Abdulsalam Al-Abbadi

  Dr. Yousef Ghyzan

Dr. Wasif Al-Bakri

Sheikh Saeid Hijjawi

Dr. Abdulaziz Al-Khayat

Sheikh Na`eim Mujahid

  Dr. Mahmoud Abu Yahia

Sheikh Mahmoud Shewayat

 

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Summarized Fatawaa

Is it permissible for a pious Muslim woman to stay with her husband who had quit praying out of laziness?

Quitting prayer is one of the major grave sins that come after disbelieving in Allah, but the wife of such a person isn`t considered divorced, rather, she should exert all her efforts in order to bring him back to the way of Islam. However, if his sin is likely to lure her from the way of Islam, then she had better separate from him by lawful means such as Mokhal`aa (When a wife pays a compensation for her husband in return for divorcing her). Moreover, if she exercises patience, and remains steadfast on her faith, then there is no harm in doing that.

What is the ruling of Islamic Law on a latecomer who joins the imam during the standing position of the first rakʿah but was unable to complete the recitation of al-Fātiḥah?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
If a latecomer (masbuq) joins the prayer while the imam is standing, he should begin reciting Sūrat al-Fātiḥah immediately, without pausing to recite the opening supplication (duʿāʾ al-istiftāḥ) or the seeking of refuge (taʿawwudh). If the imam bows before he completes al-Fātiḥah, he follows the imam into the bow and leaves whatever remains of al-Fātiḥah — the imam bears it on his behalf.
It is stated in ʿUmdat al-Sālik (p. 47): "If a latecomer finds the imam standing and is confident that he has enough time to recite the taʿawwudh and al-Fātiḥah in full, he may do so. If he is uncertain, he should neither recite the opening supplication nor the taʿawwudh, but rather begin directly with al-Fātiḥah. If the imam bows before he completes it, he follows him into the bow — provided he had not already begun the opening supplication or the taʿawwudh. If he had begun either of them, he continues reciting al-Fātiḥah for as long as he spent on them." And Allah the Almighty knows best.

What is the ruling on performing Tarawih in sets of four rak‘ahs with only one Tasleem?

It is not permissible to combine more than two rak‘ahs with a single Tasleem in Tarawih prayer. Whoever does so, their prayer is invalid. Shaykh al-Islam Imam Muhammad al-Ramli (may Allah have mercy on him) stated: "If a person prays four rak‘ahs of the Tarawih prayer with a single Tasleem, it is not valid if they did so intentionally and with knowledge [of the prohibition]. Otherwise, it becomes an 'absolute voluntary prayer' (nafl mutlaq); because it is contrary to what has been prescribed." [Nihayat al-Muhtaj, Vol.2/P.127].

Is a person who is in a state of Janabah (major ritual impurity due to having a marital intercourse, ejaculation, menstruation, and post-delivery impurities) sinful if he/she goes about his/her daily life activities in that state i.e. without making Ghusl (ritual bath)?

It goes without saying that a Muslim should always be in a state of ritual purity so as to be able to perform prayers and recite Quran. It is from Sunnah (Prophetic tradition) that a Muslim hastens to make Ghusl from Janabah, but he/she is not sinful in case he/she delayed that provided that he/she doesn`t miss prayers. However, it is permissible for him/her to go about their daily activities while in a state of Janabah, but had better bathe in order not to miss any prayer.

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