Islamic Banking In UK

I want to bring into your attention a major issue which is related to Islamic banking in UK. A number of Muslim families in west take mortgages (loan) to purchase houses, where the bank charges interest (riba) on the loan. Recently, there are few banks such as HSBC and Islamic bank of Britain who started offering Islamic mortgage based on the concept of Ijara. I have been trying to understand this framework and there are arguments on both sides. Please see the article against these so-called Islamic mortgages.

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Islamic Banks In Pakistan

There are about six Islamic banks working in Pakistan. Some are Pakistani and rest are of different Islamic countries like Dubai, Abu Dhabi, Bahrain, Saudi etc. they tell that their business is looking after by a board of ulema and their business is all Islamic. They announce their profit every month.I want to ask whether it is allowed making investments in fixed accounts of these banks.

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Status Of The Current Forms Of Islamic Banking

I am not clear about the concept of Islamic banking introduced in Pakistan. From what I have studied, it looks to me that the new system is actually not Islamic. They are just using the Islamic/Arabic terminology to mislead people and have also introduced lengthy paper work to make all the interest bearing products as Islamic products. Our Muftis are helping them against payment of huge stipends. (I may be wrong and want to correct my perception). I am strictly against Riba and when I tell my friends, they ask about the alternatives or solutions. Here, I do not have anything to say to a person who is employed somewhere with limited salary and no spare time to do or participate in any Halal business beside the trust factor in investing as a silent partner. Please help/guide me in answering these three questions according to your understanding of Islam.

1)Is the current Islamic banking and their products Halal and How?
2)Can we recommend some alternative investment plans to small investors which are Riba free and secure?
3)Can you refer a good book / web source / article to learn in detail about this issue under current economic situation?
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Further Discussion On Investiment In The So-called Islamic Banks

Dear brother, your answer[1] is not very clear. Firstly if Islamic Banks like Meezan are not fully Islamic then what is the fun of keeping money in them? You say leasing is acceptable and murabahah is not. Then how do we know that our money has been used in leasing only. In one of the TV shows a similar question was asked to Mr Ghamidi. He never commented on it to be half okay and half not. He simply said that no zakah is to be paid as 10% deduction has already been done. Please clarify this point as I placed my amount in this Bank for seven years after listening to Deen-O-Danish on Dunya TV. I want to be absolutely sure about my investments because I have to face Allah Almighty one day. I will be quoting you people on the day of resurrection. Now please tell me whether keeping money in these banks is Halal or not. They don’t give fix profit. They claim that they invest in Halal dealings. People like us can’t go and investigate them for that. We have to trust somebody when their is hardly any choice left these days.

[1] Reference is towards the following discussion: Read More

Investment In The So-called Islamic Banks

I have fifty million rupees deposited in Meezan Bank for seven years. My questions to Mr Javeed Ahmed Ghamidi follow:

a. Is this bank really working as per Sharī‘ah? They do not give fixed profit and claim that they do not invest our money in un-Islamic trades.

b. Do I have to pay the zakah on the original amount deposited and on the profit? Bank deducts 10% tax on my profit each month.

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