Question:
Our institution has an office in Germany run by an employee who works for us and for other companies as well, and he takes a commission for the job. He also gets a share of the net profit at the end of the year and a certain percentage of the profit from the sale of a good in Kuwait. Is it permissible for me to deal with KFH on a murabahah basis through our office in Germany; i.e., by opening a credit account in the name of the office in Germany after adding a commission to the cost?
Answer:
Since the office in Germany is your office, this deal with it is bay‘ al-‘inah, which is prohibited. This is because you bought from the branch office in cash and sold to the company that you own on credit. However, it is permissible to cancel the role of your agent in Germany and deal directly with the factory.
Issuer:
Kuwait Finance House