Fatwa: # 40924
Category: Business Matters
Country: United States
Date: 26th September 2018


Buying an investment property (for renting) using Islamic financing


Aoa. Is it permissible to buy an investment property (for renting) using islamic/shariah financing ? (assuming that the bank is sharia compliant). I was once told my a local Imam that I should avoid islamic financing (when i was purchasing my own home) if I can (e.g., buy a smaller/cheaper home w/o loan, instead of trying to buy a nicer home with islamic financing)


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

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

If the Islamic/Shariah financing is Shariah compliant, it will be permissible to buy an investment property through that.

However, one should be alert that there are many banks/Islamic investment schemes incorrectly claiming to be Shariah compliant.


And Allah Ta’āla Knows Best

Mirza Mahmood Baig

Student Darul Iftaa

Jeddah, KSA

Checked and Approved by,
Mufti Ebrahim Desai.


DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org 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. Askimam.org 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.
  • AskImam.org 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 AskImam.org.
  • 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.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]