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PERMISSIBILITY OF CERTAIN FINANCIAL CONTRACTS

I have attempted to give examples of some financial contracts which can be used for various purposes – for risk reduction or hedging and speculation involving options, futures, and swaps; and direct and indirect investment in equity. Kindly let me know to what extent these are permissible under Islam.

FUTURES CONTRACTS ON STOCK EXCHANGE

1. An example […]

Economics|

RIBA, ITS MEANING AND APPLICATION

Q: Respectable Mufti Saheb: Kindly forgive me for intruding on your precious time and specially during the Holy Month of Ramadan when you will be too busy. Also please forgive me in addressing this letter in English as perhaps I may not be able to express myself more clearly in Urdu.
You have been making research […]

Economics|

DOLLAR JET GAME: GAMBLING

Q: There is a system called “Dollar Jet”. Its procedure is as follows. This system is world wide and thousands of people are participating in this game. Please let us know whether it is lawful in Shari’ah.

RELAX AND GET RICH!
Gambling is expensive, but there’s a recipe for success.
With it, you can earn capital assets of
US$ […]

Economics|

INHERITANCE OF A RUNNING BUSINESS

Q: “Yousuf has a moderate sized business. Two of his sons assist him full time in the business. Two daughters are married. Yousuf passed away. The estate is not wound up immediately. Yousuf’s two sons continued with the business. Finally after ten years it is decided that the estate should be wound up and each […]

Economics|

DECREASING PARTNERSHIP AND HOUSE FINANCING

Q: .1 The bank would purchase the land or property from the vendor and sell it to the would be buyer on an installment basis. Each installment would act as an increasing participation by the tenant in the property until such time as all the installments have been paid. At that time the tenant would […]

Economics|

THE INSURANCE OF CARS

Q; “Is car insurance permissible? The photo-copy of an article published in “Arab News” is enclosed wherein it is held that car insurance is perfectly permisslble and it is not against the concept of “Tawakkul” or “Taqdeer”. Please explain whether or not this viewpoint is correct in Shari’ah.”

(Mansoor Qadri, Jeddah)

A; I have gone through the […]

Economics|

COPYRIGHT IN ISLAM

Q; Can you please explain the Islamic injunctions about the “copyright”, especially about the copyright on computer software? The questions are: (i) Can we register a book under the copyright Act which bars the people from publishing that book without the permission of the copyright holder? (ii) If something is registered under the law of […]

Economics|

THE ANNUAL FEE CHARGED ON A CREDIT CARD

Q; “The scholars of Fiqh Academy have approved the use of credit _ cards as reported by Arab News, 15 May.
As you know, banks charge a fixed annual fee for credit cards use. Can I ask the bank to issue a credit card to me and offset their annual fee against the interest which I […]

Economics|

INSTALMENT SALES OF HOUSES

Q: “The Fiqh Academy has also allowed installment sales. Does this mean that I can now buy a house in UK or USA on installments bearing in mind that each installment includes repayment of “principal” and “interest”.

A: Sale on installment should never be confused with a transaction of interest bearing loan. In a sale […]

Economics|

THE ADJUSTMENT OF INTEREST TO THE LOSS OF CAPITAL

Q: “Thank you for your answer to my question which appeared in November 1991 issue, concerning the adjustment of the interest amount to the loss of principal in the BCCI. Please clarify whether the interest received from another source other than BCCI can be adjusted against loss of capital in BGGI? (M. S. Desai, Saudi […]

Economics|

FURTHER QUESTIONS RELATING TO THE CONSUMER CREDIT CARD

Q: I received your answer to the question on the consumer credit scheme for which I thank you.
I have, as a humble student, reservations on the correctness of your conclusion. I would be obliged if you would urgently respond to the following:
1. It is correct that on the basis of written documentation the relationship between […]

Economics|

THE CONSUMER CREDIT SCHEME

THE CONSUMER CREDIT SCHEME

Q: It is becoming common for Muslim retail businessmen in South Africa to enter into the so-called consumer credit scheme. The retailer concerned concludes a written agreement with a third party Company (“the Company’). A copy of the specimen agreement is enclosed herewith. In terms of the scheme:
a) the customer wishes to […]

Economics|

Dealing in Interest in America or UK

Q: I have recently been told that it is permitted for a Muslim to deal in interest in America or UK i.e. a Muslim can open interest bearing savings bank account in America or UK. The interest received from the bank should then be given to poor and needy Muslims in Pakistan or India. I […]

Economics|

Interest

Q: I have some interest credited to my account from my days of ignorance. However, I intended to give away this interest money by the end of this year. However, as you know, BCCI has been closed in UK and it is unlikely that we will get full refund of our deposits with them. My […]

Economics|

ADJUSTMENT OF INTEREST AGAINST THE LOSS OF PRINCIPAL 1

Q: In response to my question, you have replied in the Albalagh International- November 1991 issue – that I can adjust the interest money received earlier against the loss of my principal amount in BCCI, your reply, I assume, is based on the assumption that I want to adjust the interest received earlier “FROM BCCI” […]

Economics|

ON FISCAL LAWS

Q: What is the deifinition of Riba (ربوا) according to the Holy Quran and Sunnah of the Holy Prophet (S.A. W). Does it cover the simple and compound interest existing in the present day financial transactions?
A: The word, Riba as understood from the Holy Qur’an and Sunnah, is any extra payment received over and above […]

Economics|

PARTNERSHIP ON A FIXED PROFIT

Q: I have a considerable amount of money saved by me from my monthly income. I want to invest it in a lawful business which can give me some profit. One of my friends has offered me to enter into partnership with him, I shall give him the money and he will invest it in […]

Economics|

THE USE OF CREDIT CARDS

Q: Kindly throw some light on the use of credit cards, which are floating in the market. Majority of these cards belong to professional banking institutions, such as American Express, City Gold Card etc. However, some cards are issued by companies such as Diners club etc, which are not themselves banking institutions. Please explain the […]

Economics|

SEVERAL QUESTIONS ABOUT INSURANCE AND INTEREST

Q: (1) Is it Jaiz (permissible) to take an insurance policy from a conventional insurance company to cover our employees against liabilty in the following circumstances:

** Injuries that may be suffered by workers (company employees)
due to accidents in the course of their work.
***within the company’s premises
***whilst travelling in company vehicles.
***Injuries that may be suffered by […]

Economics|

ENTITLEMENT TO DEATH BENEFITS PAYABLE BY PENSION FUNDS

Q: 1. The Pensions Funds Act 1956 (“Act’) regulates pension funds in South Africa.
2. The object of the Act is to provide support for the dependants of a deceased member upon his death. The support is provided by means of lump sum payments and/or annuities.
3. A pension fund established in terms of the Act has […]

Economics|