Shariah Ruling

IN THE NAME OF ALLAH, MOST COMPASSIONATE MOST MERCIFUL

"Praise be to Allah, the Cherisher of the worlds. And peace and blessings be upon the seal of the Prophet, his family and all his companions".

Question

Is it legal/rightful from an Islamic point of view to deal with Samba Islamic Banking?

Answer

After rigorous examination and scrutiny, and in view of the positive role of such functions in boosting the trend towards Islamic banking and cleaning up financial dealings from the forbidden usury and developing legal alternatives in place of usury transactions, the Board has resolved that the establishment by a traditional bank of an Islamic banking does not prevent dealing with such division, as long as it adheres in its activities to Islamic principles and regulations.

Since Islamic Banking at Samba has its own independent financial and operational system which is separate from the Bank, and that its transactions are carried out under the supervision of the Shariah Supervisory Board, therefore, we, members of the Board, do not see any objection in doing business and dealing with it. The board has also set a plan to regularly review and examine Islamic Banking activities, issue an annual report and provide its staff with guidance and training.

May God guide us to the right path.