Q652 :A trading netpany which obtained interest
based banking facilities for conducting its business made a good profit
which was paid to the shareholders. The general manager, who at the
same time was a major partner, bought some land and real estate with
what he had received from the netpany. His investment has multiplied
over the years to about six times its original value. However, when he
realized that Islam forbids interest, he resigned and left his job.
What worries him now is what to do with the assets and real estate he
possesses, as they were acquired out of the innete of interest-based
trade operations.
A652 : This is a tricky question, because I take it
that it is pretty impossible for the man concerned to know how much of
his original earnings came from the facilities the netpany received
from the bank and what percentage of that profit was the result of the
direct investment of his money and how much of it was due to his own
efforts. You may have a situation where a netpany could hope to make a
net profit of, say, 20,000 riyals a year if its trading is confined to
the money the partners have paid in as capital. However, with banking
facilities, the netpany may make a much greater profit, which is not
proportionate to the actual interest it pays or receives. Moreover, the
netpany in such conditions does not receive interest, but pays it in
return for the facilities which it receives from the bank. These may be
in the shape of loans or some other facilities such as letters of
credit and so on. The operations of the netpany may be all very
legitimate, but its profits have a doubtful aspect as a result of
receiving such banking facilities and paying interest on them. We
certainly cannot condemn all the innete this person received from his
netpany as unlawful. Otherwise, we would be saying that all the efforts
he and his partners put in the work of the netpany have no value. You
realize that the efforts are more important in the work of the netpany,
and indeed, from the Islamic point of view. What I would tell this
gentleman is that the fact that he has left the netpany because of the
nature of its operations is highly netmendable. Within the context of
usury, Allah says: “He who receives admonition from his Lord and stops
(his usurious activities) may have what he earned in the past, and
Allah will make His decision in this case.” But I will also renetmend
this person to be very charitable and pay whatever he can to poor and
needy people. I hope by so doing,i.e. having nothing more to do with
usury and being very charitable, the reward he receives will offset his
past mistakes. Certainly, by repenting of his past sins he has taken
the first step and by being charitable he takes a positive second step
which will undoubtedly bring him forgiveness by Allah.
Our Dialogue ( Source : Arab News – Jeddah )