Sunday, March 05, 2006

Re: Bravenet Form Processor Fiqh Q&A

Question: I am an Indian working in Saudi Arabia, wants to know regarding the Mutual Fund Investment in Saudi Arabia, here Banks have number of Mutual fund Schemes which they says Shariah Compliant Schemes,in their published brochure. What is your opinion in investing such Mutual Fund Schemes in accordance with the Sharia Committe of Saudi Arabia?

Answer: I have not studied these.
Question: If a person A having a land but not money to built a house, but his friend B has the money, so person A approches his friend B and asked to invest a sum of 2 lacs money to construct the person A house, further Person A says, i will returned back your money in installmants in 1 or 2 years and as a profit he says take the rent of the One portion of the constructed house till I returned back money(2 lacs). Is this transaction is halal according to shariah?
Answer: Not if the "investment" is a loan, because this is a loan on the condition of extra benefits to the lender over and above merely returning the money.