We established a mutual assistance fund
Machine translationRead the Arabic original
With the two mothers
We are a group of people from the United Arab Emirates who have come together and established a mutual fund, from which every member of the fund benefits. The method of this fund is as follows: each member of this fund subscribes with a minimum amount of (500 dirhams) deducted from his monthly salary into a special account for the fund. From the group of amounts collected in this account, members of the fund are lent a benevolent loan without interest, and the member benefits from the fund in two ways: The first way is the accumulation of capital for him, through the amount that grows monthly, so that he can retrieve the amounts he deposited in this account if he wishes to withdraw from the fund without any reduction or penalty, knowing that each member bears the zakah of his money that is in the fund. The second way is the member's benefit from the benevolent loan if he needs it, which does not compel him to resort to interest-based banks or ask people, according to the system and policies of the benevolent loan specific to the fund,
and now, after six years have passed since the establishment of the fund, the fund has a large capital, which led to thinking about investing part of the amount present in many commercial projects, including this project about which we are asking before we proceed with it. It is that the fund will implement a sale system to the members of the fund (only), such that if a member of the association wishes to buy a certain commodity, he expresses his desire for it to the investment committee formed by the fund, which in turn purchases the commodity, possesses it, and owns it fully, and then sells it to the member with a new contract, and he is not obligated to sign this contract if he retracts his desire to buy the commodity. The fund’s intention behind the installment sale to the members of the fund only is: to benefit from the profit in the sale and guarantee this profit, since it is within the framework of the fund’s members, and to help the members in facilitating their means of living, knowing that the profits will be distributed over the course of the fund’s financial year to all members, including the buyers. So I hope you will issue a fatwa to us on the legitimacy of this fund and the legitimacy of this type of investment. And may Allah reward you with the best reward for us and for the Muslims.
After the committee studied the question, it answered that no legal impediment appears that prevents the validity of establishing this fund and participating in it and selling goods to the contributors
on an installment basis; because the original ruling for transaction contracts is validity except for what evidence indicates is defective, and because the aforementioned fund, after entering into commercial projects, has become a commercial company, in which each person has a determined share, and based on that, what the participant pays in it is not a loan but rather his share in the company.
We are a group of people from the United Arab Emirates who have come together and established a mutual fund, from which every member of the fund benefits. The method of this fund is as follows: each member of this fund subscribes with a minimum amount of (500 dirhams) deducted from his monthly salary into a special account for the fund. From the group of amounts collected in this account, members of the fund are lent a benevolent loan without interest, and the member benefits from the fund in two ways: The first way is the accumulation of capital for him, through the amount that grows monthly, so that he can retrieve the amounts he deposited in this account if he wishes to withdraw from the fund without any reduction or penalty, knowing that each member bears the zakah of his money that is in the fund. The second way is the member's benefit from the benevolent loan if he needs it, which does not compel him to resort to interest-based banks or ask people, according to the system and policies of the benevolent loan specific to the fund,
and now, after six years have passed since the establishment of the fund, the fund has a large capital, which led to thinking about investing part of the amount present in many commercial projects, including this project about which we are asking before we proceed with it. It is that the fund will implement a sale system to the members of the fund (only), such that if a member of the association wishes to buy a certain commodity, he expresses his desire for it to the investment committee formed by the fund, which in turn purchases the commodity, possesses it, and owns it fully, and then sells it to the member with a new contract, and he is not obligated to sign this contract if he retracts his desire to buy the commodity. The fund’s intention behind the installment sale to the members of the fund only is: to benefit from the profit in the sale and guarantee this profit, since it is within the framework of the fund’s members, and to help the members in facilitating their means of living, knowing that the profits will be distributed over the course of the fund’s financial year to all members, including the buyers. So I hope you will issue a fatwa to us on the legitimacy of this fund and the legitimacy of this type of investment. And may Allah reward you with the best reward for us and for the Muslims.
After the committee studied the question, it answered that no legal impediment appears that prevents the validity of establishing this fund and participating in it and selling goods to the contributors
on an installment basis; because the original ruling for transaction contracts is validity except for what evidence indicates is defective, and because the aforementioned fund, after entering into commercial projects, has become a commercial company, in which each person has a determined share, and based on that, what the participant pays in it is not a loan but rather his share in the company.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.