The Main Requirements of Islamic Finance The Quran contains explicit rules regulating personal status, contracts, property, civil and criminal law, and the economic system. The main prescriptions relating to financial transactions are: the prohibition of riba’ [1] (i.e. the payment of a fixed or determinable interest on funds); and the prohibition of economic practices that involve the concept of ... »

Why Muslims Reject Interest (Riba) Muslims consider interest as a modern equivalent to Riba; that is an income that is not earned or is unfair. The main problem with Riba is that from the very start it represents an unfair situation for one of the two parties in a business transaction or loss. Regardless of the circumstances, Muslims consider that the very concept of an interest rate is inherently... »

Definition of riba and ruling on work that helps with riba Question What is the definition of riba? If we take into account the fact that in most countries the economy is based on the principle of the circulation of capital, which includes lending, is accepting payment in that particular currency for any work regarded as an action that supports the riba-based system ? Is using the currency of a st... »

Ruling on dealing with mortgages in a non-Muslim country Question We live in a western society and we live in rented accommodation so as to avoid riba. Recently we found out that there are no houses for rent, and 96% of the market is based on mortgages. All houses are offered for sale only. Some of them told me that in this situation it is permissible for me to buy a house by means of a mortgage a... »

Entering into a partnership with a person who deals with bribes and riba Question There is a businessman who was offered money by a man in order to do business for him, but the one who offered this money deals with bribes and riba. Is there any sin on this businessman? Answer Praise be to Allaah. Firstly: If a person earns money in haraam ways such as riba, bribes, stealing and cheating, etc., and... »

Where should he deposit his money in these times when riba is so widespread? Question Where should I deposit my money in an age when people have become so negligent and the banks are dubious because of riba, and we have no Islamic banks and keeping the money at home is not safe? I want to deposit my money in a place that is permissible, without committing any sin. And I want to invest it and pay z... »

Can they make use of the interest (riba) because they are in need? Question My father (may Allaah have mercy on him) died eight years ago. He worked as a taxi driver, and the taxi was in the name of one of my younger brothers (it was not a gift to him; rather that was because of some problems with the insurance, which meant that the taxi should not be in my father’s name). After my father di... »

Question about interest based on inflation Question It is haraam to pay interest because of inflation. Answer Praise be to Allaah. Yes, it is haraam to pay interest on loans even if that is because of inflation. The scholars are agreed that if it is stipulated that a loan be repaid with something extra, that is riba (usury) which is forbidden by Allaah and His Messenger. Ibn Qudaamah said in al-Mu... »

Should he buy shares in a company that puts its money in the bank and pays a part of the profits? Question The scholars have said that it is permissible to buy shares that are basically halaal and are put in the riba-based banks, on the condition that 15% of the profit is paid in the public interest. Is it permissible to give that to relatives to benefit from it, such as one’s mother or siblings? ... »

Depositing money in a riba-based bank Question Is it allowed for me to keep the money in the Bank for transactions only, if i will not take any Interest on the deposited money. But obviously bank will use this interest for themselves Answer Praise be to Allaah. It is not permissible to put money in a bank that deals in riba (usury or interest), and the Muslim should not do that unless he is forced... »