the stipulating party is the bank itself or any other entity; for this is nothing but the usury of the pre-Islamic era that the Quran was revealed to forbid.

May Allah bless and grant peace to our Prophet Muhammad, his family, and all his Companions.

Members of the Council

Resolution of the Islamic Fiqh Academy Concerning Bonds: Resolution No. 60

The Islamic Fiqh Academy, convened in its sixth session in Jeddah, Kingdom of Saudi Arabia, from 17–23 Shaʿban 1410 AH (14–20 March 1990 CE),

Having examined the papers, recommendations, and findings presented at the symposium “Financial Markets,” held in Rabat from 20–24 Rabiʿ al-Thani 1410 AH (20–24 October 1989) in cooperation with the Islamic Research and Training Institute of the Islamic Development Bank and hosted by the Ministry of Awqaf and Islamic Affairs of the Kingdom of Morocco,

And having considered that a bond is a certificate by which the issuer undertakes to pay the holder the nominal value at maturity together with an agreed-upon interest calculated on that nominal value, or to provide a stipulated benefit—whether in the form of prizes distributed by lot, a fixed amount, or a discount—

Resolves as follows:

First: Bonds that represent an obligation to repay their principal together with interest calculated thereon, or with any stipulated benefit, are prohibited by Sharia—whether in their issuance, purchase, or trading—because they are interest-bearing loans, regardless of whether the issuer is a private entity or a public body linked to the state.