Question: Is Islamic banking halal or haram, and what is the ruling on working in Islamic banks?
Answer: According to Islamic principles, banking can be conducted in a Sharia-compliant manner, such as in Saudi Arabia, where the banking system is based on Sharia. Therefore, establishing and working in such banks is permissible. However, as for the so-called Islamic banks in India and Pakistan, they do not operate according to Islamic principles. Hence, one should not be misled by the name “Islamic bank” in these countries
Written by: Shaikh Maqbool Ahmed Salafi (May Allah protect him)
Jeddah Da’wah Center, (Saudi Arabia)
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