Q: I request the legal opinion of Your Eminence (may Allah safeguard you) on the savings systems offered by the National Cooperative Insurance Company in Riyadh, so that you guide me and other Muslim youth. Attached are the complete details of this system. Please accept my sincere appreciation.

A: After examining the inquiry for Fatwa and the saving system, the Committee maintained the impermissibility of depositing money in the mentioned manner because it involves Riba (usury) that is prohibited by both the Qur'an and Sunnah (acts, sayings or approvals of the Prophet). This is due to the amount added to the original sum by the company, which is considered a usurious increase, according to what is stated in Article no. 10 of this savings system and in provision no. 7 of the executive regulations. Moreover, this system includes a Fasid (corrupt) condition which is the company's guarantee of the principal capital of each member which they invested as stated in provision no. 5/9 of the executive (Part No. 11; Page No. 102) regulations. This is because the investor bears any losses in this Mudarabah (speculation) (Part No. 11; Page No. 103) while partnership is only in the profits.May Allah grant us success and may Allah's Peace and Blessings be upon our Prophet, his family and Companions.