Mufti Saif al-‘Asri on the fatwa by some Hanafis that allows interest (riba) based transactions in non-Muslim lands. People are using this opinion to claim that Muslims taking out interest-based mortgages is permissible.

Question: Is it permissible to conduct interest (riba) based transactions in Western countries?

Mufti Saif al-‘Asri: This question is very important, especially if the intention of this Muslim, who lives in a Muslim country, is to introduce them to Islam and its way of life, and to be an exemplary person that people imitate. So, if when he comes to a non-Muslim country, he says: “There’s an opinion that the Hanafis have which considers it permissible to conduct otherwise impermissible transactions in non-Muslim lands. So, it’s permissible for me to sell pigs to them and it’s permissible for me to engage in interest (riba) based transactions with them.

Some Hanafis make the condition that he is the one receiving the interest and not giving it, meaning he’s the one receiving the benefits (of the interest based transaction) and he’s not benefiting the one he’s conducting a transaction with, and so forth. This is an opinion, an opinion that exists. We can’t wipe away this jurisprudential opinion. And it has its evidence.

However, the vast majority of scholars, and it’s even an opinion within the Hanafi school itself, are of the view that it is haram for a Muslim to conduct an impermissible transaction with a non-Muslim. It is not permissible for him (a Muslim) to conduct an interest based transaction with him (Non-Muslim), nor is it permissible to sell or buy alcohol from him, nor is it permissible to sell him pork, and so on and so forth.

None of that is permissible. And this opinion is the opinion of the vast majority of scholars. It’s the opinion that allows you as a Muslim to be proud of your religion in front of others. It allows you to proudly showcase the distinguishing features of Islam and take honor in the religion that you ascribe to. On the other hand, if you’re going to take legal dispensations and conduct transactions based on these things, how are you going to be a caller to this religion?

Through your character? The way you speak? Your actions? How? How are people going to look at you? If they say: “Islam prohibits pork; however, masha’Allah, this Muslim at the store sells pork.” I mean, what will make you different from other people? A Muslim must not conduct impermissible transactions, whether it’s interest or other than it in Western countries.