I would like to ask about the “rent to own” system that is offered by the Islamic Arab Bank International while knowing that this is part of the Arab Bank (a riba based bank). Their scheme is as follows: The bank buys tangible assets such as properties, ships, airplanes, machines etc according to the request of the client while the bank agrees to rent him these assets for a specific amount of rent that is paid regularly and that by the end of rental period the client will become the owner of the asset as the bank gives it to him as a gift without any return. Rent-to-own schemes are also offered to allow clients to purchase apartments and houses according to the following conditions: competitive Islamic rental return, longer pay back period that can be up to 20 years, easy monthly installments, free subscription to the collective cooperative insurance system, free insurance on the property, the possibility to finance furniture and kitchen appliances, free visa card for the first year, an agreement by the bank to transmit the ownership of the rented property to the client after the end of the rental period. The question however is not about the rent-to-own scheme but rather about dealing with a bank whose assets and sources are involved in riba yet they conduct some Islamic contracts and transactions so despite the nature of the contract, I would like to ask about the transactions that riba banks conduct and are promoted by them as transactions that are conducted according to the Islamic banking system.

It is permissible according to the most correct view of the views of the current people of the knowledge to conduct Islamic finance and dealings with riba banks as long as the transaction is in agreement with the law of the Shareeah. As for the mentioned transaction, the information provided is not sufficient to examine the transaction in detail and decide if it is lawful or unlawful as we need to read the contract that is signed with the clients. And I see that the noble questioner refers to the Fatwa committee of the mentioned bank because the people of Mecca know its pathways better [i.e. they will know better than others as they are involved in it]. And Allaah, Most High, knows best.