Tawarruq in the Name of Companies
Machine translationRead the Arabic original
Fatwa No. ( 21465 )
Q: I hope you will inform me about the permissibility of my purchasing shares of one of the companies for a specific amount in cash, and selling them to another person for an amount greater than the purchase price, to be paid in installments over one year, knowing that the buyer will, after receiving the shares, sell them to others to obtain a cash amount less than the purchase price that he committed to pay me.
A: There is nothing wrong with buying and selling shares if they are in companies that do not deal in riba (usury or interest), and if they are asset-based companies such as construction companies, agricultural companies, and production factories, and the like. Whoever buys them is permitted to sell them and dispose of them as he wishes. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I hope you will inform me about the permissibility of my purchasing shares of one of the companies for a specific amount in cash, and selling them to another person for an amount greater than the purchase price, to be paid in installments over one year, knowing that the buyer will, after receiving the shares, sell them to others to obtain a cash amount less than the purchase price that he committed to pay me.
A: There is nothing wrong with buying and selling shares if they are in companies that do not deal in riba (usury or interest), and if they are asset-based companies such as construction companies, agricultural companies, and production factories, and the like. Whoever buys them is permitted to sell them and dispose of them as he wishes. 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.