Written by: Fatwa Saudi Fatwa Committee
[Permanent Committee for Islamic Research and Ifta, Fatwa 3328]
Partnership in Banking and Financial Institutions
It is permissible to partner with banking (interest-free) institutions that do not engage in any form of interest-based transactions. There is no legal (shar'i) barrier to such partnerships or to depositing funds in these institutions. Similarly, it is also permissible for an individual to invest in these institutions' non-interest-based dealings and other lawful business activities, provided the investment is based on profit and loss sharing and complies with Islamic legal conditions.[Permanent Committee for Islamic Research and Ifta, Fatwa 3328]