Islamic Resources

Religious Verdicts on Some Business Practices Dealing in Visa Agreement Q: I wish Your Eminence would guide me to the right path and good deeds. I brought in some foreign workers about eight years ago, and sold the visas to another person here; he was from Pakistan or from Egypt. This was on the basis that he would bring in the workers and they would do whatever work he wanted, meaning, they would not be working with me in my corporation. This was a condition between me and them, and we agreed that they would pay a portion of their salary to me at the end of each month, but this was not binding. I repent to Allah for doing this. Some of the workers have returned to their country, and I do not have their address, and some of them are still here and I do not take any money from them; shall I ask them to forgive me for this deed? (Part No. 13; Page No. 79) My brother was and still is responsible for them and I was his authorized agent. What is the ruling on the money which I have taken for selling the visas and the money I have taken from the workers? I am a fourth-class public servant whose salary is 4462 Riyals. I have to pay for a car and house in installments. Therefore, I can not afford any further installments. This is my financial position. I also used the money I took from the workers in my marriage, and this matter causes me severe pain. Is there any wrong concerning this? Now, with Allah's favor I have a child who represents the turning point in my life. What should I do? May Allah reward you with the best. A: Selling visas is not permissible, because it involves telling lies, breaking the law and deceiving the authorities, and it is consumption of wealth by means of falsehood. Allah (Exalted be He) says: And eat up not one another’s property unjustly (in any illegal way e.g. stealing, robbing, deceiving, etc.), nor give bribery to the rulers (judges before presenting your cases) Accordingly, the money you earned from selling the visas and the money you took from the workers is ill-gotten, so you have to get rid of it and clear yourself of it. You should spend any money that you have obtained by selling visas, (Part No. 13; Page No. 80) in charitable ways such as giving to the poor and building facilities that will benefit the Muslims. Concerning the money which you have taken from the workers themselves each month, you have to return it to them if they are still in the country, or try to send it to them in their country. If you could not find out where they are or send it to them, then give it in charity on their behalf, because this money was deducted from them unlawfully and they were not compensated for it. You have to continue repenting for this action, and never repeat it in the future. Whoever gives up something for the sake of Allah, Allah will compensate him with something better. Allah (Exalted be He) says: And whosoever fears Allâh and keeps his duty to Him, He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. Is there a set rate of profit in business or not? The Permanent Committee for Scholarly Research and Ifta' Q 1: Is there a set rate of profit in business or not? Also, take into consideration the high amount of taxes business owners pay each year. A: It is permissible for a person who sells a product for profit whether immediate or deferred to sell it at a higher price. We do not know of any limit on profit but one should be moderate, as there are reports which encourage that. However, if the product is known locally to be of a certain price, a Muslim should not sell it for more to one who is unaware of that without telling him of this fact. Inflating prices is a kind of deceit. A Muslim is a brother of his fellow-Muslim, thus he should not wrong him, abandon him, cheat him, or betray him, rather he should advise him sincerely wherever he is. The Prophet (peace be upon him) stated: "Religion is dependent on advising one another." The Hadith related by Muslim in his Sahih. And in the Two Sahih (authentic) Books of Hadith (i.e. Al-Bukhari and Muslim) on the authority of Jarir ibn `Abdullah Al-Yamany that he said: "I gave my Bay`ah (pledge of allegiance) to the Prophet (peace be upon him) to establish Salah (Prayer), pay Zakah (obligatory charity), and be sincere towards every Muslim." Islamic Ruling on Insurance The Permanent Committee for Scholarly Research and Ifta' Q 2: A man bought a car in installments for being unable to pay its price in cash. The car agency demanded him to pay car insurance. Respected Shaykh, what is your ruling on paying this insurance and other types of insurance, such as life insurance? (Part No. 13; Page No. 157) A: It is permissible to buy a car in installments, if the car and the price are agreed upon, and the amount of each installment and the due dates of payments are fixed. Car insurance, is Haram (prohibited). Similarly, insurance on life, organs, merchandise, and all types of commercial insurance are Haram. They involve Gharar (fraudulent transaction where details about the sold item are unknown or uncertain), gambling, and unjustly taking people's money. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. Instalmental Sale with Intention of Re-purchase The Permanent Committee for Scholarly Research and Ifta' Q 3: If I sell a car to a person in installments, given that this increases its price, and then he asked me to buy it from him for less than the price I sold it to him for, what is the ruling on this? (Part No. 13; Page No. 136) A: This is called `Inah sale (selling and delivering something to another person in installments but repurchasing it with less immediate cash). It is Haram (prohibited), according to the Shar`y (Islamic legal) evidence on its prohibition. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. Visiting One’s relation Who Works in a Haram Establishment The Permanent Committee for Scholarly Research and Ifta' Fatwa no. 12978 Q: My brother-in-law is working as a lorry driver in an alcohol company. He distributes wine. Can I visit my sister and eat at her house? Can I take money from him as a debt or the like? Moreover, he built a building from the money earned from this work. A: Visiting your sister is permissible as it is a kind of keeping good relations with your relatives. As for eating from the house of your sister, you are permitted to eat from the house of your sister if her husband has another legal means of gaining. Otherwise, you will not be permitted to eat at their house because the money he earns is unlawful. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. The Permanent Committee for Scholarly Research and Ifta' Guaranteeing a person who takes a loan from the bank The first question of Fatwa no. 14623 Q 1: A person wanted to take a loan from a bank. He asked me to guarantee him but I refused because I doubt the permissibility of guaranteeing him, for this bank gives the person money and requires him to repay it with interest, which is known to be Riba (Usury). Is guaranteeing this person considered as cooperation in Riba (usury)? A: Taking a loan from the bank with interest is not permissible and the same ruling applies to guaranteeing the person who takes a loan from such a bank. Guaranteeing this person is cooperation in committing sin, while Allah (Glorified and Exalted be He) states: ...but do not help one another in sin and transgression. And fear Allâh. Verily, Allâh is Severe in punishment. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. Taking from an Orphan’s Wealth Due to Necessity The Permanent Committee for Scholarly Research and Ifta' Fatwa no. 18327 Q: I am a widow and I support an orphan girl through the court. The state, may Allah protect it, assigned a monthly payment of around 1000 Riyals for this girl. Sometimes I feel embarrassed to make use of this money because it belongs to her. Therefore, I deposited her money in the bank. I do not spend on her from her money. It should be noted that I am an employee. I receive a salary of 1,700 Riyals from which I pay the rent of the house where my mother, I and the girl live, as well as the costs of having a maid to nurse my mother who suffers from heart disease. She takes care of my mother while I am at work and I have a driver who drives my daughter to school. However, my salary falls short of covering all these expenses. I hope you can give me advice as regards the following: 1- Is it permissible for me to take some of the orphan girl's money for necessary things that we all need? 2- Do I have to pay Zakah for the orphan girl's money that is deposited in the bank because it has been in the bank since she was ten months old and the girl is now five years old? 3- Is it permissible for me to invest her money? And what is the ruling if I lose any of it? 4- Is it permissible for me to lend money to a person from her money? 5- Is it permissible for me to beat her as a means of discipline? A: First, the orphan's money should be preserved; it should only be used for the benefit of the orphan person with the permission of the judge in the court. There is no harm if you take from this money to spend on the orphan child. Second, Zakah should be paid upon the money of the orphan child if it reaches the Nisab (the minimum amount on which Zakah is due) and remains for one year. (Part No. 14; Page No. 250) Third, it is not permissible to lend anyone money from the orphan's money because this is not in the orphan's best interests. Fourth, it is permissible for the guardian of an orphan to invest the orphan's money if he knows that doing so is beneficial for the orphan. It is also permissible for him to give the orphan's money to another person to invest it in return for part of the profits. Fifth, it is permissible to beat the orphan for the sake of discipline but without causing him any harm or degrading him. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. The Ruling on Attending Parties Organised by Haram-based Establishments The Permanent Committee for Scholarly Research and Ifta' The second question of Fatwa no. 6396 Q 2: What is the ruling on accepting an invitation to a dinner or party held by banks that deal in Riba (usury/interest)? (Part No. 14; Page No. 43) A: It is not permissible to accept invitations to dinners and the like that are held by banks dealing in Riba. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.