Business and Dealings

Q: Is it permissible to work in the insurance industry as an accountant/bookkeeper?

Q: Al-Farooq Masjid utilizes today’s technology to collect funds via credit card.  The method we use to perform this transaction is creating a merchant account which has no cost at all to the Masjid.  Once this account is established, we are able to swipe credit cards using a mobile device (iPad).  Once the donor swipes their credit card for a set amount, that entire amount is deposited into the Masjid bank account.  A few days later, the merchant will automatically withdraw a fee based on a percentage rate (3 to 5%) of each transaction as a service fee.

We would like to know if it is permitted to continue using this method as a form of collections, and if we do continue, do we need to make the donor aware of the 3 to 5% service fee incurred after we complete the transaction?

Q: What are the categories of interest that are strictly haraam? Does interest credited to savings accounts by banks also included? Can one offset such interest received against bank charges and only dispose off the excess if the interest is not permissible?

Q: We wish to get involved in the development of private cemeteries. We will not be involved directly in burials but only in purchasing and developing it to the required standards for Council to allow burials on it. Most of the burials done here will be for non-muslims. The norm now in South Africa is for individual burial plots to be leased to the family of the deceased for approximately 10 years or so and thereafter the plots are recycled. We wish to humbly enquire whether it is permissible for us to lease the plots and then after 10 years or so, lease it again to a different family. It must be known that the Municipality has stressed that due to the large shortage of burial sites, all burial plots must be recycled after 7 to 10 years. Each individual plot will be surveyed and marked out and will be leased to burial homes in order for them to facilitate burials. Which of the following would be permissible for us to do: 

1. Re-lease the plots after every 10 years
2. Lease it for 10 years and thereafter sell the cemetery outright
3. Sell the plots in perpetuity to the families of the deceased or the burial homes

Q: I would like to obtain an opinion as to whether the business process described below is permissible in terms of Shariah Law:

We regularly purchase stock from a supplier and pay cash upfront for all our stock purchases. The supplier gives us an early settlement discount for paying for stock purchases in cash. We then pass on the bulk of the early settlement discount to our distributors for them to make a profit when they on sell the stock to their customers. Up until this stage, the business process is no different to established trade practices which are permissible in terms of Shariah Law. To confirm, the business process up until this stage consists of two transactions.

Transaction 1 - We pay a discounted purchase price for stock.

Transaction 2 – We on sell stock to our network of wholesalers and pass the bulk of our discount from the supplier on to the wholesaler.

The next stage of the business process entails an entirely separate and 3rd transaction.

Transaction 3 - The supplier, after having passed the early settlement discount to us, deposits the  stock payment  received from us into an interest earning bank account. The supplier uses the interest earnings to recover the early settlement discount given to us for a cash purchase.

We would like to emphasise that the supplier deposits the stock payment received from us into an interest earning bank account after we have received the early settlement discount and after we have received stock we have purchased. The sale of stock by the supplier to us is therefore complete by the time the supplier deposits our money into an interest bearing account. Our question is whether the third transaction in any way affects the validity of transactions 1 and 2 in terms of Shariah Law?

Q: Is it permissible to apply for a bursary at a bank? E.g. Old Mutual.

Q: Is it permissible to have banks and ATM's as tenants. Is the money from earned/received from these tenants Halaal?

Q: I work in a company that deals with architecture, construction, design of buildings, etc.

1. If the client who is not a Muslim, asks one to include a room for prayers in the plan, is it permissible?

2. Is a contract for a haraam business e.g. a night club, bar, etc. permissible?

3. If one is aware that the person is going to do haraam in the building, is it still permissible?

Q: Please can you just examine this way of investment:

Name: National saving & investments (premnium bonds) it does not give interest but prizes. 

All details should be found on this website: http://www.nsandi.com/products/pb/howitworks

Futhermore I email them to ask waht they do with the money once invested and they replied:

"Since 1st January 1981 the money raised through the sale of National Savings & Investments Premium Bonds and from our other products, has formed part of the Governments financing programme, and is paid into the National Loans Fund. The National Loans Fund is liable for both the repayment of capital and the interest (in the case of NS&I Premium Bonds the total value of prizes) paid each month. The Exchequer is authorised by Parliament to make use of the National Loans Fund, including any outstanding prize money, for such matters as the government may decide. In the past this has included health and education. However, what the money is spent on is a matter only for the government and not for National Savings & Investments. NS&I's aim is to benefit taxpayers by helping to minimize the cost of financing the national debt, a major part of government spending. The savings we make help free up resources for the government. Hoping this information is helpful." 

Q: My question is regarding radar & speed camera detectors. Recently traffic police in Saudi Arabia has introduced a new system for traffic monitoring known as SAHER. In this system they have installed speed cameras at different locations inside the city by which they are monitoring speed of vehicles and generating speed tickets for defaulters. In addition if the defaulter is unable to pay the amount within 1 month his fine is doubled, similarly if he fails to pay the fine it is trippled in the third month (the maximum is number of times the fine is multiplied is just three). The voilator recvs an sms from the traffic police on the next day of the voilation and then he has to arrange the amount with in a month to avoid it being doubled, whereas earlier the rule was that whenever a person applies for IQAMA renewel or exit re-entry he has to clear all govt dues including any voilations on him, and the voilation amount remained the same. Now some people have started to bring radar and speed camera detectors in saudia tgo avoid being caught and getting speed fines, although it is illegal to buy/sell and use in Saudi Arabia but still we have some people selling it in the market. As we know most of us reduce speed or put on our seat belts when we see the check post from faraway or we know that there are cameras or check posts in the area we are moving towards. Radar detectors are also doing the same job they tell us well in advance that there are speed cameras or police radars 500-800 meters ahead, so that we can slow down and drive carefully and avoid being caught by the police and getting heavy fines the question is that radar detectors are doing nothing but just letting us drive more safely they are not blocking police radars, nither are they blocking the lasers. they are just giving us advance safety precautions so that we can slow down our car. put on the seat belt and drive carefully and avoid speed and other voilation tickets. So can we use these devices for our personal use, and can we trade these devices, if we buy from outside the kingdom and sell them in saudi arabia will this earning be jaiz?