Aslam

Praise be to Allah.A similar question was sent to

the Standing Committee for Academic Research and Issuing Fatwas (al-Lajnah

al-Daa’imah li’l-Buhooth al-‘Ilmiyyah wa’l-Iftaa’). The text

of the question was as follows:

Al-Ummah

magazine has published a fatwa on financial matters conducted in western

countries and in daar al-harb [non-Muslim countries which are in a

state of hostility against Islam]. Imaam Abu Haneefah stated that it was

permissible to take riba from al-harbiyeen in daar al-harb,

and that every contract or transaction which was beneficialto Muslims was valid, so long as it was based on mutual consent and

involved no deception or betrayal. If this is true, it would be helpful to

some Muslims in France, because the donations that come to us stay in the

bank for months before the time comes to use them, and no one benefits

from the accumulating interest apart from the bank with which we are

dealing. If this fatwa is correct we can make use of the interest paid to

us on our money in daar al-harb, and at least give it to the poor and

needy, if no one else. And our intention is for the sake of Allaah.

The Standing

Committee, under the leadership of Shaykh ‘Abd al-‘Azeez ibn Baaz (may

Allaah have mercy on him) replied as follows:

Firstly, financial

transactions and mutual exchanges of benefits between us and the kuffaar

are valid so long as they meet the conditions of transactions set out in

Islamic sharee’ah.

Secondly, dealing in

ribaa is absolutely haraam, whether it is among Muslims or between Muslims

and kaafirs, whether they are harbiyeen or not. And Allaah knows

best.