1) Fatwa No. 2805, dated 5/2/1400 A.H.
Question:
 

A man knows someone who sells cars in the United States for installments with a fixed rate of interest on deferred payments which increases on the delay of payment. Is this transaction permissible or not?

Answer:

It the one who sells the car or the merchandise over a fixed period of time, for a price that is to be paid on a fixed future date, or dates, and does not increase the value of the deferred legal, as Allah says: "O believers, when you contract a debt for a fixed period, put it in writing" Surah Al-Baqara (The Cow), Verse 282. And it is known that Allah's Messenger, may Allah's blessing and peace be upon him, did buy some things with the payment deferred to a future date. But if the deferred payment is increased by a fixed proportion as a result of the delay in paying the installments, this forbidden, according to the consensus of all Muslims. This is pre-Islamic usury as mentioned in the Qur'an when one person at the time the payment was due said to one who was indebted to him, that the debt must be paid or the amount be increased. Allah is our Guide: may His blessings be on Mohammad and his Family and Companions.

2) Fatwa No. 2828, dated 18/2/1400 A.H.
Question:

A man who has been working in a bank for ten years knows that working in banks is forbidden. He works as a night guard, having no connection with banking operations. Should he go on working, or should he leave?

Answer:

A Muslim may not work as a guard for banks that deal with usury, as this is complicity in sin and wrong-doing. Allah has forbidden this in saying: "Help one another in what is good and pious, not in what is wicked and sinful." Sura Al-Maida (The Table), Verse 2. Most banks are involved with usury. He must look for a lawful to way earn his living. Many Allah's blessings and peace be upon our Prophet Mohammad and his Family and Companioons.

3) Fatwa No. 2782, dated 22/1/1400 A.H.
Question:

The following question was raised regarding the payment of Zakah on the purchase and sale of land: Sheikh Ahmad Mohammad Jamal wrote in Al Bilad on 12 Ramadan 1399 A.H. that Zakah on the sale of land is obligatory. A land salesman then protested by telephone that Zakah is not obligatory on land in that it is only to be paid for movable assets. I told him that the sale of land is a commercial transaction. He was not convinced and he hung up. I beg you to clarify this matter. May Allah bless you.

Answer:

Zakah is obligatory on the sale of land as it is a commercial transcation included in the list of transactions on which Zakah is compulsory. Allah says: "Take alms from their wealth so that they may thereby be cleansed and purified," Sura Al-Tawba (Repentance), Verse 103. About Dawood related upon the authority of Samra Bin Jundub, amy Allah be pleased with him, that Allah's Prophet, may Allah's blessings and peace be upon him, ordered us to pay Zakah for what we offer for sale. Thus also said the jurists and it is correct. May Allah's blessings and peace be upon our Prophet Mohammad.

4) Fatwa No. 3620, dated 15/5/1401 A.H.
Question:

Praise be to God who alone is praised. Prayers and peace be on His Messenger Mohammad and his Family and Companions. A question was submitted to the General Chairman of the Permanent Committee for Scientific Research and Opinion Giving by Mahmoud Husein Hammad (registered under No. 580 on 26/3/1401 A.H.), in which he states that he works in a bank in the Kingdom. He asks whether or not such work in banks dealing with usury is permitted. If it is not permitted, then should he resign?

Answer:

Working in present day banks that deal with usury is not permissible. You may not continue to work in this bank. The Committee previously received a similar question to which it answered in Fatwa No. 1338 on 4/6/1396 A.H. stating: Nowadays most banking operations involve usury which has been forbidden by the Book, Al Sunnah and by general consensus. The Prophet, mat Allah's blessings and peace be upon him, decreed that he who helps the usurer and his agent by working or by witnessing for him, etc. deserves to be punished together with the usurer and his agent, and will be denied Allah's mercy. In Sahih Muslim and other Hadith collections, is related the saying by Jaber, may Allah be well-pleased with him, that Allah's Messenger, Allah's blessings and peace be upon him, condemned the usurer, his agent and his witness, saying that they are all one and the same. Those who work in banks are aides to the owners of banks, as managers of their affairs, as clerks, in registration, as witnesses in transporting papers, paying out money, or collecting and receiving it, etc. all these services assist the usurers. Therefore, working in modern banks is not allowed. A Muslim must avoid this; he must earn his living by the many ways that are acceptable to Allah. He must fear Allah, and should not expose himself Divine punishment. It is hoped that this will prove a sufficient warning. May Allah guide us, and may His blessings and peace be on His Servant and Messenger, and his Family and Companions.

 

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