Cooperation for establishing Islamic banks
Fatwa No: 18824

  • Fatwa Date:10-11-2007 - Thul-Qi'dah 1, 1428
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Question

Why don’t wealthy committed Muslims establish Islamic banks as a substitute for Riba-based banks?

Answer

All perfect praise be to Allaah, the Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

 

Establishing Islamic banks as an alternative to Riba-based banks is undoubtedly an important issue.

 

This can be realized in two ways:

  1. Urging Muslims to support existing Islamic banks so that they can compete with and challenge Riba-based banks, while also attempting to remove the reasons preventing people from dealing with these Islamic banks.
  2. Encouraging righteous wealthy Muslims to cooperate towards establishing new Islamic banks. There is no doubt that scholars play a very important role in guiding and motivating people in this direction, in addition to contributing funds within their capacities.

We draw the questioner's attention to the fact that there are many well established Islamic banks inside and outside of the Gulf region.

 

Allaah Knows best.

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