Murabahah against Conducting Feasibility Studies: Permissible?
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Murabahah against Conducting Feasibility Studies: Permissible?

Questioner

Kamal

Reply Date

Nov 29, 2017

Question

Is it permissible for the financer to collect murabahah (resale with a stated profit) against conducting feasibility studies?

Counselor

Answer


Murabahah against Conducting Feasibility Studies

In the Name of Allah, Most Gracious, Most Merciful. 

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.


In this fatwa:

If the wage collected against the feasibility studies was detached from any other contract, then it is valid in case the Shari`ah conditions in that regard were met, and thus there is no harm in collecting a wage against providing that benefit.


Answering your question, the General Iftaa’ Department in Jordan, states the following:

Feasibility studies are normally conducted by specialized individuals who charge a certain wage against their efforts and expertise in that field.

Therefore, this wage goes under the Islamic term ijarah (hiring), which is an independent contract by which a certain benefit is possessed against a rent.
Accordingly, if the wage collected against the feasibility studies was detached from any other contract, then it is valid in case the Shari`ah conditions in that regard were met, and thus there is no harm in collecting a wage against providing that benefit.
Therefore, since the financer offers a certain service to the client,then there is no harm in collecting a wage in return for that service.

This is particularly since such studies aim to ascertain that the project is going well and that the capital serves the purpose for which it was taken in the first place.

However, it is conditioned that the studies should be serious, real and not just a technicality.
Nonetheless, if the studies were meant to finance a goodwill loan, then collecting any profit against them is not permissible.

Rather, the wage should equate the actual cost of the studies so as to avoid falling into interest.

 Almighty Allah knows best.

Source: https://www.aliftaa.jo/Question2En.aspx?QuestionId=3314#.Wh2s_dKWbIU




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