Buying shares from a banking company on credit, then authorizing them to sell them for cash
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success. A man bought shares from Al-Rajhi Banking Company on credit, then authorized the company to sell these shares to anyone for cash immediately. What is the ruling on this matter?
Answer:
This is a sham. It appears they do this a lot: we sell you iron in Bahrain, or in Germany, and we sell it all to you, and we give you the money. It is all a sham; there is no iron, no shares, no one knows what it is, and it is unknown. So it is a sale of dirhams for dirhams, but they make this a trick and a cover. It is obligatory to avoid these matters; they play with people using them. And Allah the Exalted knows best, and may Allah send prayers and peace upon our Prophet Muhammad, and upon his family and his Companions.
He says: Honorable Shaykh, may Allah grant you success. A man bought shares from Al-Rajhi Banking Company on credit, then authorized the company to sell these shares to anyone for cash immediately. What is the ruling on this matter?
Answer:
This is a sham. It appears they do this a lot: we sell you iron in Bahrain, or in Germany, and we sell it all to you, and we give you the money. It is all a sham; there is no iron, no shares, no one knows what it is, and it is unknown. So it is a sale of dirhams for dirhams, but they make this a trick and a cover. It is obligatory to avoid these matters; they play with people using them. And Allah the Exalted knows best, and may Allah send prayers and peace upon our Prophet Muhammad, and upon his family and his Companions.
Source
الفوزان -أشرطة- شرح زاد المستقنع مع الأسئلة - 088-الحضانة - كتاب الجنايات - 24-10-25 هـ — archive.org (45:38)
The Arabic text is a machine transcription of the audio recording.