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Search Fatawaa


Subject : It is Forbidden to Participate in the Workers Housing Fund which Involves Usurious Interests

Fatwa Number : 2845

Date : 28-08-2013

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa


Question :

What is the ruling of Sharia on the attached contract of the Workers and Employees Housing Fund of one of the companies and in which Article (10) states: "The financial resources of the Fund consist of the following: ……..and loan interests granted by the Fund."?



The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

After having examined the attached contract of the above Fund, We (Iftaa` Department) note the following: 

First: The word "loan" is repeated in many articles.

Second: There is no indication that the Fund provides funding to beneficiaries in any Sharia method of funding. 

Third: Taking into consideration what is stated in article (10): " the resources of the Fund are the interests of the granted loans," it indicates that what the Fund provides to beneficiaries are usurious loans, and usury is forbidden by scholarly consensus.

Therefore, it isn`t permissible to participate in this Fund until its contract is amended to meet the provisions of Sharia. And Allah the Almighty knows best. 




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