Q:
Is it forbidden and an act of Riba to buy insurance from Riba-based Banks or take money from them for which they charge interest?
For example, the Cement Company, Electricity Company, Gas Company, the Agricultural Company in
Harad,
the Agricultural Company in
Ha'il,
the Agricultural Company in
Al-Qasim,
Saudi Basic Industries Corporation (SABIC) in
Al-Jubayl,
and Saudi Fisheries Company deposit the shareholders' funds in banks and receives from 6% to 8% interest per year. Authorities do not prevent them from this. Is participating in such companies Haram (forbidden), taking into consideration, these companies are not usurious? Please advise us, may Allah grant you the best reward.
A:
If the case is as you have mentioned, it is prohibited for these companies to deposit money in these banks and to receive interest. It is also prohibited to contribute to such companies, even if they are not usury-based companies. (Part No. 13; Page No. 409) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
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