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Having shares in the Saudi-American Bank

Question: Advise us, may Allaah increase you in knowledge, about the ruling of having shares in the Saudi-American Bank. Is it ribaa, since it trades in interest and is based upon interest, as we know?

Response: The Saudi-American Bank and other banks, if they are based upon ribaa and trade in ribaa, then it is not permissible to have shares in them. This is because it is regarded as assisting in sin and transgression, and Allaah has prohibited this, as He (Subhaanahu wa Ta'aala) says:

{but do not help one another in sin and transgression}, {Soorah al-Maa.idah, Aayah 2].

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu `alayhe wa sallam) and his family and his companions.

The Permanent Committee for Islaamic Research and Verdicts, comprising -

Head: Shaykh 'Abdul 'Azeez ibn Abdullaah ibn Baaz;

Deputy Head: Shaykh 'Abdur-Razzaaq 'Afeefee;

Member: Shaykh 'Abdullaah Ibn Qu'ood

Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-'Ilmiyyah wal-Iftaa. - Volume 13, Page 506, Fatwa No.3134

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Published: 3 February 2000