The Forbidden Savings System
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Fatwa No. ( 21201 )
Q: Your Eminence, it is not hidden from your Highness that a system has been established in SABIC companies, as well as the Saudi Aramco company, called the “Savings System.” This system is based on points that may agree or differ in some companies. However, Your Eminence, we are in the Saudi Iron and Steel Company (Hadeed) in Jubail Industrial City. We had a savings system, and the Permanent Committee for Scholarly Research and Ifta, under the presidency of His Eminence Shaykh Abdul Aziz ibn Baz (may Allah have mercy on him), issued a fatwa that it was not permissible. However, the company issued a new savings system dated 11/6/1420 AH, attached to this letter, which has led many employees to ask about the permissibility of this new system, whose terms have been modified by the company. We ask your Highness to review it and issue a fatwa for us, may Allah reward you.
A: Participating in the aforementioned savings system is not permissible; because it contains forbidden riba in the form of a loan with interest; as is clear in clause (6/b)
and it is obligatory to leave dealing with it; in obedience to Allah the Exalted and His Messenger (peace and blessings be upon him).
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: Your Eminence, it is not hidden from your Highness that a system has been established in SABIC companies, as well as the Saudi Aramco company, called the “Savings System.” This system is based on points that may agree or differ in some companies. However, Your Eminence, we are in the Saudi Iron and Steel Company (Hadeed) in Jubail Industrial City. We had a savings system, and the Permanent Committee for Scholarly Research and Ifta, under the presidency of His Eminence Shaykh Abdul Aziz ibn Baz (may Allah have mercy on him), issued a fatwa that it was not permissible. However, the company issued a new savings system dated 11/6/1420 AH, attached to this letter, which has led many employees to ask about the permissibility of this new system, whose terms have been modified by the company. We ask your Highness to review it and issue a fatwa for us, may Allah reward you.
A: Participating in the aforementioned savings system is not permissible; because it contains forbidden riba in the form of a loan with interest; as is clear in clause (6/b)
and it is obligatory to leave dealing with it; in obedience to Allah the Exalted and His Messenger (peace and blessings be upon him).
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.