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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

What is the ruling of Islamic Law on wudu (ablution) when there is an adhesive substance on the hand that is difficult to remove?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
The general principle is: if what is applied to the limbs of wudu' (ablution) does not form a barrier substance preventing water from reaching the skin, then the wudu' is valid despite its presence. However, if these substances prevent water from reaching the skin, the wudu' is not valid with their presence, and they must be removed so that water reaches the hair or skin without any barrier.
Shaykh al-Islam, the Imam an-Nawawi, may Allah have mercy on him, says: "If there is wax, dough, henna, or similar substances on some of his limbs [of wudu'], and this prevents water from reaching any part of the limb, then his purification (tahara) is not valid — regardless of whether the amount is much or little. But if there remains on the hand or elsewhere only the trace and color of the henna, without its substance [i.e., the physical residue itself], or the trace of a liquid oil such that the water touches the skin of the limb and flows over it, though it does not remain [as a barrier] — then his purification is valid." [Al-Majmu' , Vol.1/P.529]. And Allah, the Exalted, knows best.

How to perform the witr prayer in terms of connection (wasl) and separation (fasl)?

 
Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
The Witr prayer has several forms that vary in terms of virtue:
 
The First Form: Separating every two units (rak‘ah) with a Tashahhud and a Taslim (salutation). This is superior to connecting the units, even if it is only a single rak‘ah. This is based on the Hadith of ‘Aishah (may Allah be pleased with her): 'The Messenger of Allah ﷺ used to pray eleven units between the end of the ‘Isha prayer and dawn, performing the Taslim after every two units and performing Witr with a single unit.' (Related by al-Bukhari & Muslim).
 
The Second Form: Connecting the units with only one final Tashahhud at the very end.
 
The Third Form: Connecting with two Tashahhuds—meaning reciting the Tashahhud before the final unit without performing the Taslim, then standing to complete the final unit. This form is considered the lowest in rank so that the Witr prayer remains distinct from the obligatory Maghrib prayer, as stated in the Hadith: 'Do not make the Witr resemble the Maghrib prayer.' (Narrated by Al-Daraqutni, who stated its narrators are trustworthy).
 
It is stated in Bushra al-Karim Sharh al-Muqaddimah al-Hadramiyyah: 'It is permissible to connect [the Witr] with one Tashahhud in the final unit—which is better—or with two Tashahhuds in the last two units, as both methods are established in Sahih Muslim from the actions of the Prophet ﷺ. In the connected method, more than two Tashahhuds are prohibited. Furthermore, separating (al-Fasl) is better than connecting (al-Wasl) if the number of units is the same, because the Hadiths supporting it are more numerous and it involves more devotional actions.' And Allah the Exalted knows best."

Is it permissible for a woman to give the ransom (Fidyah) for breaking her fast to her granddaughter (her son`s daughter)?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
It is permissible for a woman to give the ransom (Fidya) for breaking her fast in Ramadan to her granddaughter (her son’s daughter), provided that the girl is poor and her basic needs are not being met by the maintenance (Nafaqah) of those who are lislamically obligated to provide for her. And Allah the Exalted knows best.

I work overtime after regular working hours and may become occupied with my phone or the work computer for personal matters — what is the ruling on this?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is obligatory upon an employee to abide by the instructions and regulations governing overtime hours, and equally obligatory to uphold honesty and avoid all forms of deception and dishonesty. Allah the Almighty says {what means}: "O you who have believed, be mindful of Allah and be with the truthful." [Al-Tawbah/ 119]
Whoever is assigned to work overtime must be present at his workplace — even if he has no specific tasks to carry out at that time. In such a case, he should strive as best he can to spend that time in a manner that benefits the institution he works for. If there is genuinely no work for him to do, there is no objection to occupying his time with something beneficial — such as reciting the Holy Qurʾān, reading, or listening to educational lessons — provided he has already completed all the responsibilities assigned to him.
If, however, he does have work to complete, he must spend that time fulfilling it. He may attend to phone calls or other personal matters to the extent that is customarily acceptable, as long as this does not result in delaying or postponing his work. If he delays his work on account of personal preoccupations, the wages he received for that wasted time are not lawfully his to keep, and he is obliged to return the equivalent amount to the institution by whatever means available to him. And Allah the Almighty knows best.

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