Islamic Banks and Equities

Submitted by admin on Sat, 2012-10-06 08:18

Q:

Could you please explain the rulings regarding Banking with Islamic Banks (Absa Islamic, Albaraka, Etc). A friend of mine said to me it is all a scam and the Scholars involved are there to make a quick buck, and I should regard the profits as interest? Is this correct and what is your advice and explanation if possible, as i would like to take it up these banks for an explanation?
Similarly, what is the ruling regarding investing in Equities with scholars on their board (Albaraka Futregrowth, Oasis Cresent, Etc.?)

A:

We are not absolutely clear with the operations of Islamic banks. However, if any particular case is brought before us we will be in a position of ruling in favour or against. It is difficult for us to generalise their operation.
As above.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

Category:

Business and Dealings

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