عربي
Home


Resolutions of Iftaa' Board


Resolutions of Iftaa' Board

Date Added : 15-12-2015

 

Resolution No.(40): "Ruling of Sharia on a Draft Article Concerning the Application of Zero-Interest Contracts in Financing at The Agricultural Credit Corporation"

Date: 11/11/1417 AH, corresponding to 20/3/1997

 

We have received the following question:

What is the ruling of Islamic Sharia on the draft article concerning the application of contracts in financing at The Agricultural Credit Corporation?

Answer: All perfect praise be to Allah, The Lord of The Worlds, and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

Having undertaken comprehensive study, the Board has arrived at the following version:

Article (1): This regulation is to be called (The regulation of zero-interest financing contracts at the Agricultural Credit Corporation)

Article (2): Words and expressions mentioned in this regulation shall have the equivalent meanings given below, unless the context indicates otherwise.

A- The Corporation: Agricultural Credit Corporation.

B- (The Board):  Board of Directors of the Agricultural Credit Corporation.

C- The Director-General:  Director-General of the Agricultural Credit Corporation.

D- The Sharia supervisory committee: The Committee formed by virtue of this regulation to make sure that the Corporation complies with the rules of Sharia when applying it (regulation).

Article (3): By applying the zero-interest regulation, the Corporation aims at achieving the following:

A- Widening the scope of transaction with the agricultural sector through providing financing and investment services based on this regulation.  

B- Utilizing means of agricultural financing and investment on zero-interest basis.

C- Participating in the provision of necessary financing to meet the needs of the agricultural sector and its targeted groups.

Article (4): The Corporation shall accomplish its goals through the following contracts:

A- Mudarabah (Co-partnership): A contract by which the Corporation provides the needed cash, partially or completely, to finance a defined transaction where the party contracted with (Mudarib) functions on basis of sharing the profit if both parties agree on a certain percentage. In case of loss, the Corporation shall assume the liability; whereas, the partner (Mudarib) shall receive no compensation for his effort, unless he was negligent or committed a violation.

B- Muzaraa`h (Sharecropping): A contract of investing an agricultural land concluded between the owner of the land and the Corporation that shall invest it, if the produce is divided according to an agreed upon percentage. 

C- Musaqah (Share-tenancy): A contract of investing trees concluded between a company `s owner and the Corporation whereby the latter takes care of the trees provided that the produce is divided according to an agreed upon percentage.

D- Almogharasah (farm leasing): A contract between the land lord and the Corporation whereby the latter plants the land and takes care of the planted trees and provides whatever is needed for that end during a certain period, provided that the Corporation utilizes it in accordance with the agreed upon conditions.

E-Murabaha: It means selling an object while informing the purchaser of its original price and the profit he (seller) is getting in this deal. The conditions of the validity of this transaction are the same as the other transactions, i.e. the sold item itself should be lawful, pure, useful, in the possession of seller, and the seller should be able to hand it over to the purchaser. 

F- Istisnaa` (Making at the customer`s order): A contract concluded between the Corporation and the manufacturer whereby the latter shall manufacture a specified type and quantity of a certain commodity within a specified deadline of delivery in return for a defined price to be paid by the Corporation, against the needed materials and work, or the work in case the Corporation provided the needed materials.

G- Salam (Buying in advance): Amongst the conditions for the validity of Salam transaction:

1- The sold property should be describable in terms of features, quantity and available upon delivery time.

2- The contract should include the kind of the sold item, description, quantity and date of delivery.

3- If the contract doesn`t include the date of delivery, the seller is bound to deliver the item at the contracting council.

H-Any other contracts approved by the Board.

Article (5): These contracts fall under the umbrella of the stipulations of the Civil Law.

Article (6): The Corporation shall accept the investors` funds for investing them in its sphere of activities in line with the rules of Islamic Sharia.

Article (7): The Corporation may manage the manageable properties and assets on basis of sharing the profits in line with the rules of the Mudarabah (co-partnership) contract.

Article (8): The Board of Directors shall appoint a Sharia supervisory committee of no less than three specialized scholars. In addition, none may neutralize that committee, dismiss or change any of its members, save by a resolution from the Board, and a direct recommendation from the Director-General.

Article (9): The Board of Directors shall abide by the opinion of the Committee in the following:

A- The instructions issued by the Board regarding the forms and agreements necessary for executing the above contracts.

B- Reviewing the reasons for holding the Corporation responsible for any loss in investment and financing in order to check the Sharia evidence, which backs the resolution of the Board.

Article (10): The Corporation shall draw up its general policy pertaining to zero-interest financing and investment while maintaining a sufficient flow of cash in line with the sound banking customs and practices.

Article (11): The Corporation`s law, regulations and their amendments shall be enforced in cases not addressed in this regulation and after the consent of the Sharia supervisory committee.

Article (12): The Board shall issue the applied instructions necessary for executing this regulation. And Allah Knows Best.

 

Chairman of the Iftaa Board, The Supreme Judge, Izuldeen At-Tamimi
Sheikh Sa`eid Hijjawi
Sheikh Ibrahim Khashan
Dr. Abdulsalam Al-Abbadi
Dr. Fat-hi Al-Duraini
Dr. Mahmoud Al-Bakheet
Dr. Mahmoud Al-Sartawi
Sheikh Mahmoud Shewayat 

 

Decision Number [ Previous | Next ]


Summarized Fatawaa

Generally speaking, I`m dutiful to my mother and opt for obeying her. However, she chose a certain girl to be my future wife, but I`m not pleased with her choice although that girl comes from a good family and enjoys good character. Should I obey my mother or choose another girl that lives up to my expectations?

Praise be to Allah the Lord of the Worlds.

One must obey their parents in whatever is in compliance with the teachings of Sharia and within one`s capacity. However, you aren`t to blame for not marrying that girl, but it is better that you tell your mother about that and it is preferable that you perform Istikharah prayer. And Allah The Almighty Knows Best.

Is it permissible to distribute the raw meat of the vowed animal sacrifice amongst the poor, or to offer it to them in cooked form?

It is impermissible for the vow-maker to eat from the vowed animal sacrifice, rather, he/she should distribute it as he/she had intended upon making the vow, but if the vow was a general one, without any specification then, it is better to give it as raw meat.

A woman died at the age of ninety. Her living children are nine: two sons and two daughters. The youngest of her grandchildren, from her son who passed away one year before her, is aged thirty-two. Are these grandchildren entitled to the obligatory bequest although they are aged thirty-two and above?

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.
A Muslim isn`t obligated to leave a bequest to his grandchildren whose father had passed away; rather, this act is recommended. Therefore, if he left a bequest whereby they get less than one third of the estate then Allah will reward him for that. However, if he left no bequest for them then they get nothing because their paternal uncles are alive and they are closer to the deceased and more entitled to inherit him. This is the position of the four schools of Islamic jurisprudence. However, the Personal Status Law didn`t adopt this position; rather, it gave them the same amount to which their father is entitled when alive but his father or mother are dead; provided that it doesn`t exceed one third of the estate. Therefore, we advise them (Grandchildren) to relinquish this share of the inheritance. If not, then we advise their paternal uncles to overlook the amounts taken from their shares and given to their paternal nephews. And Allah the Almighty knows best. 

What is the ruling on not fulfilling a vow?

A vow is a commitment towards Allah, The Almighty, and so, it should be observed as much as possible, and it is impermissible to take it lightly. Allah, The Exalted, says –in commending the believers-: “(Because) they perform the vow and fear a day whereof the evil is wide-spreading,”{Al-Insan/7}.

See More