Question Summary:
I would greatly appreciate it if I could get feedback on the progress on your Traditional Investment Product, as spoken about at the Business Campaign earlier this year.

Question Detail:

I would greatly appreciate it if I could get feedback on the progress on your Traditional Investment Product, as spoken about at the Business Campaign earlier this year.

Secondly, I am aware of the Darul Ifta’s stance on financing with Albarakah Bank. What is your stance then on “profits” earned through savings accounts with the bank, and Unit Trusts held with the Future Growth Albarakah Equity Fund.

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
Jazakallah for your email of 18 November 2008.11.19
We are still busy with the background work on the investment product. It will take longer than we originally anticipated. There is a lot of legal red-tape that has to be overcome before we can launch. However, should an investor have a large sum available, in the region of R5m, then a fund could be set up for him at present.
The so called profits of Al Baraka bank are Haraam. This applies to both the Future Growth Albaraka Equity Fund, as well as the accounts with the bank.
For full details, refer to the following links.
http://www.al-inaam.com/fataawa/Shares/debate on shares.pdf
http://www.al-inaam.com/fataawa/Shares/Shares Appendix A.pdf
http://www.al-inaam.com/fataawa/Shares/Shares appendix B.pdf
http://www.al-inaam.com/fataawa/Shares/Shares Appendix C.pdf
http://www.al-inaam.com/books/Al_Baraka_undisputable_Riba.pdf
http://www.al-inaam.com/Books/riba_in_new_getup.pdf
http://www.albshariahcompliance.co.za/site/
 
And Allah Ta'ala Knows Best

Wassalamu Alaykum


E. Vawda (Mufti),
Checked and Approved:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah