I read a fatwa passed by Mufti Zuber Bhayat shaheb that it is permissible to invest with al baraka bank provided the paper work is checked by a reputable Aalim,i need to know if i can invest with al baraka?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
1.There are two issues that relate to dealing with a Bank
Both these elements are critical in the conclusion of any Shariah compliant deal. It is imperative that the contract fulfils the Shariah Laws of Trade as well as fulfil the necessary procedures laid down in Shariah.
It has always been the policy of the Darul Iftaa, that anyone entering into a deal with any bank should first verify the Shariah compliancy of the agreement before concluding the deal. It has been in this regard that the Darul Iftaa had received many requests from the public to verify the Shariah compliancy of their deals with Albaraka Bank.
The Darul Iftaa had studied the previous and revised Musharaka (Partnership) and Mudarabah contracts of Albaraka Bank and found them to be un-Islamic.
2.The Bank finances its various projects through the funds it receives from its depositors and investors. Therefore, if the finance deals of the bank are not Shariah complaint, the income accrued there-from will be contaminated and hence not permissible.
And Allah knows best
Muhammed Zakariyya Desai,
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah