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Search Fatawaa

Subject : It is Permissible to Invest Family Assembly`s Funds in Murabah to the Purchase Orderer (MPO)*

Fatwa Number : 401

Date : 13-12-2009

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

A family assembly`s fund has an amount of ten thousand JDs. I use this amount to buy items upon customers request and sell them to the latter by installments. I do the buying only upon request and according to the market price. I sell the items by installments and for a certain margin of profit. Is this transaction lawful? Are the funds of this assembly liable for Zakah?

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.


It is permissible to use family assembly`s funds in buying and selling transactions and, according to scholars, this is called (Murabaha to the purchase orderer). However, this is provided that the members of the assembly approve of this and that you take possession of the commodity, become liable for it in case of damage or the like, then sell it in cash or by installments for a certain profit that you agree on with the customer.

As regards Zakah, the assembly`s funds are liable for it once a full lunar year passes over their possession and since the funds are joint money, then they are treated as one unit when it comes to paying their Zakah. And Allah The Almighty Knows Best.


* A Murabaha to the purchase orderer (MPO) is a form of Murabaha in which the potential buyer (purchaser/orderer) instructs the seller (usually an Islamic bank, a financier) to purchase a given asset/commodity according to pre-defined specifications. 




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