Question Summary:
Dubai Islamic Bank Salam Finance Loan Contract

Question Detail:

 I have seen many people here in UAE are asking about Dubai Islamic Bank Salam Finance compliance with Islamic Sharia and Mufti sb. asked to provide the copy of finance contract. I personaly also very keen to know about this bank finance permissibiity Here I am providing the link to the contract of Salam finance and will be very thankful if you can share your opinion on its sharia permissibility.
Here is the link to the contract: https://www.dropbox.com/s/in57uejn7a7mtyk/DIB%20Salam%20Finance%20Loan%20Contract.pdf?dl=0
 
 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
At the outset, we wish to point out that studying business related contracts and analysing the Shariah Compliancy of such contracts is time consuming, hence the delay.
 
We have studied the Salam contract of Dubai Islamic Bank, reference number-1266578. In our view, the contract reflects the Shariah laws of Salam and is Shariah Compliant. However, Shariah Compliancy in dealings is not confined to only the contract being Shariah Compliant. The implementation of the contract with the sequence related to it actually determines the Shariah Compliancy of the deal.
 
It is the responsibility of the parties, seller and purchaser (Muslam Ilayhi and Rabbus Salam) to ensure correct and proper implementation of the contract to realise complete Shariah Compliancy of the deal.
 
And Allah Ta’āla Knows Best
Huzaifah Deedat
Student Darul Iftaa
Lusaka, Zambia
Checked and Approved by,
Mufti Ebrahim Desai.