a specified period from the date of billing.
– Another type imposes no interest at all.
– Most cards carry an annual fee charged to the holder, although some are issued without any yearly fee.
After discussion the Council resolved to postpone reaching a definitive Sharīʿa ruling on these cards until a forthcoming session so that the matter can be examined in greater depth. Allah knows best.
- Resolution of the Islamic Fiqh Academy on the ruling concerning the purchase of shares in companies and banks when some of their dealings involve ribā (usury):
All praise is due to Allah alone, and blessings and peace be upon the one after whom there is no prophet, our master and Prophet Muhammad, and upon his family and companions.
To proceed:
The Council of the Islamic Fiqh Academy, affiliated with the Muslim World League, in its fourteenth session held in Mecca, which began on Saturday, 20 Shaʿbān 1415 AH (21 January 1995 CE), examined this question and resolved the following:
-
Because the basic rule in transactions is permissibility, the establishment of a joint-stock company whose purposes and activities are lawful is permissible according to the Sharīʿa.
-
There is no disagreement about the prohibition of investing in companies whose primary objective is unlawful, such as engaging in ribā, or producing or trading in forbidden items.
-
It is not permissible for a Muslim to purchase shares in companies or banks if some of their transactions involve ribā and the purchaser is aware of that fact.
-
If a person buys shares without knowing that the company deals in ribā and then learns of it, he must divest.
The prohibition in this matter is clear, owing to the general evidence in the Qur’an and the Sunnah that forbids