Fatwa No : 81035
Shariah Ruling Regarding Meezan Bank, Bank Islami, Bank Alfalah Limited, Dubai Islamic Bank, and Dawood Islamic Bank

Shariah Ruling Regarding Meezan Bank, Bank Islami, Bank Alfalah Limited, Dubai Islamic Bank, and Dawood Islamic Bank

Assalamu Alaikum!
Respected Mufti Sahib, kindly guide me regarding the following matters:
1. What is the Shariah status of Meezan Bank, Bank Islami, Bank Alfalah Limited, Dubai Islamic Bank, and Dawood Islamic Bank? Is it permissible to earn profit through them?
2. What is the Shariah ruling regarding Pak-Qatar Family Takaful and Dawood Family Takaful, and is it permissible to receive profits from them?

الجوابُ حامِدا ًو مُصلیِّا ً

1. Meezan Bank, Bank Islami, and similar banks operate according to certain business formulas suggested by some scholars. Although these systems are far better and closer to the principles of Shariah compared to conventional banks, the individuals managing them are often not well-versed in Islamic legal principles. As a result, they frequently make mistakes in implementing these transactions and formulas — not due to a flaw in the system itself, but because of the misunderstanding or negligence of the individuals involved. Consequently, such transactions may become impermissible in Shariah due to improper execution. Therefore, before engaging in any dealings with these banks, one should gather complete information about the transaction and seek a ruling from a reliable Darul Ifta, and act according to that guidance.
2. It should be noted that the complete operational procedure of Dawood Family Takaful is not known to us; if the inquirer has full details, they may provide them so that a proper Shariah ruling can be issued. As for Pak-Qatar Family Takaful, its system is free from riba (interest), qimar (gambling), and gharar (excessive uncertainty). It is based on mutual cooperation, assistance, and Shariah principles, incorporating the concept of waqf (endowment), which brings spiritual reward. Therefore, there is no Shariah objection to purchasing a policy from this company.