Egyptian Dar Al Iftaa settles dispute over 25% certificate offer
The Egyptian Dar al-Iftaa answered a question received from one of his followers, in which he says: What is the ruling on investment certificates?
And in a previous fatwa on its website, the fatwa said: “What a fatwa should do: deposits in banks, savings books, investment certificates and the like are considered part of new financial contracts, and not loans that entail prohibited benefits, and this is not has nothing to do with usury, and that its profits are not prohibited; It is permissible to take it and benefit from it according to the Shari’ah.”
And the fatwa added: “The benefits of banks, savings books and investment certificates are among the issues that differ in their description and adaptation among modern scholars, and on which the fatwa established that storage in banks, savings books, investment certificates, and the like – from the category of innovative financing contracts, and not loans that bring forbidden benefits, and “usury” has nothing to do with it.
And she continued the fatwa: “The one who must investigate and act: It is permissible to enter into new contracts if they are free from fraud and harm, and this is what the Banking Law of Egypt No. 88 of 2003 AD says. and its executive regulations issued in 2004 AD”.
And the fatwa continued: “And the decision of the ruler is controversial, so the profit is not prohibited, because it is not interest on a loan, but rather finances the profit obtained from contracts that reach the interests of their parties.
In this regard, Sheikh Awayda Osman, secretary of the Egyptian Dar al-Iftaa fatwa, during a previous live broadcast, received a question from a person to the Egyptian Dar al-Iftaa on his official Facebook page: about the ruling on bank investment certificates.
Secretary of the fatwa in Dar al-Ifta, he confirmed that investment bank certificates and banking in general are new and did not exist in the era of the Messenger of God, peace and blessings of Allah be upon him, pointing out that they are not prohibited, and in them no usury.