Subject : Ruling on Appointing a Commercial Bank as Intermediary in Buying and Selling Sukuk

Fatwa Number : 3473

Date : 05-03-2019

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

Is it permissible to appoint a commercial bank as intermediary in buying Sukuk (Approved by Islamic Sharia) from some Arab countries, knowing that there is no Islamic agent for these in Jordan. Moreover, the money of these Sukuk is separated from the bank`s where the latter`s sole function is to conclude the buying process. In return, the bank receives (001%) as administrative fees where no interests or profits are involved?

The Answer :

Praise be to Allah the Lord of the Worlds.

Sukuk (Islamic bonds) are usually issued in huge amounts. The regulations governing the issuance process are provided in a specific brochure, which also includes the subscription party from where the shares can be bought.

In terms of its legal framing, the subscription party acts as an agent for the issuing party, and its job is to sell the Sukuk. It merely acts as intermediary. Moreover, the special nature of the commercial bank`s work has nothing to do with the ruling of Sharia on buying these bonds through it. From the perspective of Sharia, it is only conditioned that the agent have the capacity and the business is lawful, and both conditions are met by the commercial bank.

In conclusion, it is permissible that the above bank acts as intermediary in buying and selling the Sukuk. And Allah the Almighty knows best.

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