Category: Business Matters
Fatwa#: 37092
Asked Country: South Africa

Answered Date: Oct 29,2016

Title: They say this FNB contract is sanctioned by Mufti Ebrahim Desai


Assalaam u alaikum warahmatullahi wa barakaatuh

Respected mufti sahib (sallamakumullah)

FNB has opened an islamic investment account just a few years back . it is an account within the fnb’s main account , and the money put into this account they claim does not get mixed  with the main accounts money , it is run totally separately by a different admin group .

Their portfolio of investment is only vehicle and property financing .

They finance vehicles through an ijaarah contract .The contract states after the completion of the ijaarah period  the car will be given to the lessee as a gift from the side of the bank .

They say this contract is sanctioned by Mufti Ebrahim Desai .

I just want to clarify , is this true .

If it is and that is not a problem will it be fine to invest with this fnb sector or is there any other reason why one should stay away from it ?



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We have devised the Ijarah contract of FNB Islamic Finance which included the insurance amount in the monthly instalments. We did not devise nor approve the Ijarah contract with a separate insurance contract. Such a contract is not Shariah compliant. You may obtain the property financing contract and forward to us for our observation.

And Allah Ta’āla Knows Best 

Mufti Ebrahim Desai

DISCLAIMER - questions answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.