12-09-2005, 05:45 AM
Based on my understanding, the Alahli card, any purchase that you make on the card from the market, will in substance be purchased by the Bank say for $50, the bank will then sell it back to you for a higher price of say $55 (based on the fact that it is to be paid on so and so date). That in essence would be a purchase and sell agreement between you and the bank and presumebly Islamic.
But what it does not say is how the profit element would work if you do not make a payment at the designated date, since this could kick in an interest element.
There is as to my knowledge an incomplete consensus on this form of sharia products.
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"Failure is a word unknown to me" - M A Jinnah
But what it does not say is how the profit element would work if you do not make a payment at the designated date, since this could kick in an interest element.
There is as to my knowledge an incomplete consensus on this form of sharia products.
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"Failure is a word unknown to me" - M A Jinnah
