research and study.

15 – Certificate of ownership right:
The Council resolved to defer issuing a ruling on this matter to a future session in order to allow for additional research and study.

Second: The sale of options

Contract description:
By “option contracts” we mean agreements in which one party receives consideration for undertaking to sell a specified, described item—or to buy it—at a fixed price, either within a given period or at another agreed-upon time, whether the transaction is executed directly or through an exchange that guarantees both parties’ rights.

Sharia ruling:
The option contracts currently traded on global financial markets are new constructs that do not correspond to any of the named contracts recognized in Islamic jurisprudence.
Because the subject matter of the contract is neither property, nor usufruct, nor a transferable financial right for which compensation may be taken, the contract is invalid under Sharia.
Since these contracts are impermissible in the first place, their trading is likewise impermissible.

Third: Trading in commodities, currencies, and indices on organized exchanges

1 – Commodities:
Commodities are traded on organized exchanges by one of four methods:

Method one:
The contract grants the right to receive the goods and the price immediately, with the commodities themselves—or warehouse receipts representing them—being in the seller’s ownership and constructive possession.
This contract is permissible according to Sharia, subject to the well-known conditions of sale.