Scholars differ as to whether it is permissible to make a cash waqf or not. Their opinions are centred around three principles which they claim ensure the validity of a waqf: A waqf must be perpetual. A waqf must not deplete. A waqf must not be movable. According to the above principles, some scholars say [...]
Across the UK, frantic shoppers are emptying shelves amidst fears over the spread of the coronavirus disease. Panic buying has turned into a sweeping epidemic in many parts of the country. Several appeals by both the government and the supermarkets calling for consumers to shop responsibly have fallen on deaf ears. Furthermore, there have even [...]
Can you exchange old gold with new gold? Ibn Abdi Bar reports that there is a scholarly consensus on the fact that gold can only be exchange with gold, if the amount is equal to equal and the gold is exchanged hand in hand. For example: A gives 100 grams of old gold to B [...]
The practise of naked short selling is not permissible as you are selling something which you do not own. Selling something without having ownership is not permissible in Islam. And Allah knows best! (Mufti) Billal Omarjee
The practise of leasing gold for short selling on the financial markets is not permissible. Leasing gold to someone who will sell it, is equivalent to lending. The lease payment is like an interest payment. This is the opinion of the scholars among the Hanafis, Malikis, and Hanbalis. (Please note that, leasing gold for personal [...]
The opinions of the scholars can be divided into two categories: It is permissible to sell a gold jewellery on credit, when the jewellery is not considered a medium of exchange. This is the opinion of Mu’awiya (ra), Ibn Arabi, Ibn Taymiyah, Ibn Qudama and contemporary scholars, such as Rafiq Misry in his second opinion, [...]
The certificates can be traded in the following three methods: When the transaction and settlement is cleared straight away (T+0) There is no doubt that this method is permissible, as it mentioned by AAOIFI and others. When the transaction is deferred such as in the Forward contracts This method is not permissible. When the transaction [...]
An investor needs some liquidity from the bank. He approaches the bank and enters into an agreement where the bank will buy £1 million worth of gold today from him. In return, the investor agrees to buy back the gold from the bank in 6-month time for a pre-determined mark-up price. Is this permissible? It [...]
In a commodity market, lending can take place in two forms: A company might lend to another company with the condition that the repayment is inclusive of an interest amount. This method is not permissible. A company might lend to another one without the condition of interest payment. This method can be divided into [...]
It is permissible to trade gold-backed sukuk if there is a bilateral exchange at the time of the transaction. The possession of both the sukuk certificate, and the currency, can be constructive rather than physical. For the sukuk, possession can materialise by registering it under the name of the new sukuk holder. For currency, this [...]
