Friday, November 24, 2017 - 5 Rabi' al-Awwal 1439
Home » Fatwas » Financial Transactions » Investments

Is it permissible to purchase investment certificates to finance the New Suez Canal Project?

Is it permissible to purchase investment certificates to finance the New Suez Canal Project?

Answer

It is permissible to purchase investment certificates to finance the New Suez Canal Project. It said that such contracts are considered finance contracts concluded between the participants and the state and they are in no way considered usurious loans. Investment contracts between banks, authorities or public associations on the one hand and individuals, organizations or companies on the other are in fact new kinds of contracts that achieve the interests of the contracting parties. The opinion implemented for fatwa is that it is permissible to generate new contracts provided they are free of deception or harm, and achieve the interests of the contracting parties.

The legal entity represented by the state, authorities, and public associations are governed by rulings that differ from those of a natural entity. The interest generated from these certificates encourage people to subscribe for the project so that the state may confront challenges and the difficult economic situation and promote development.

Related links
» Profit Sharing and Specifying Investment Rate