Is ‘Amana Islamic Finance Lawful?

Shafi'i Fiqh

Answered by Shaykh Irshaad Sedick


I would like to understand if financing from ‘Amana is lawful and if I can proceed. Here is the website Amana Islamic Finance


In the Name of Allah, the Most Merciful and Compassionate. May Allah alleviate our difficulties and guide us to what pleases Him. Amin.

A qualified board of scholars has approved the product in question. We do not have direct relations with them, but we should trust reliable scholars for their views. The product has been deemed permissible by them, and they would best be equipped to answer specific questions about the product, and Allah knows best.

Determining the Permissibility of a Financing Product

To determine if a particular Islamic financing product is lawful or not, one should consider the following:

Shari’a Compliance

The financing product must comply with Shari’a principles and guidelines. Shari’a compliance can be determined by reviewing the relevant documentation, including the financing contract and any Shari’a-compliance certificates or opinions.


The financing product must be transparent in terms of the fees, charges, and terms and conditions. The terms and conditions of the financing product should be clearly stated in the financing contract.

Risk Sharing

Islamic financing products are based on the principle of risk sharing. The financing product should not involve any element of interest or usury. Instead, the profit and loss should be shared between the financier and the customer.

Use of Proceeds

The financing product should be used for lawful purposes. The customer should ensure that the financing is used for productive activities and not for activities that are prohibited by Shari’a principles.

Approval by Shariah Scholars

The financing product should be approved by a competent Shari’a board or scholars who are Islamic finance experts. This ensures that the financing product complies with Shari’a principles and guidelines.

In summary, to determine if a particular Islamic financing product is lawful or not, one should consider its compliance with Shari’a principles, transparency, risk sharing, use of proceeds, and approval by competent Shari’a scholars.

I pray this is of benefit and that Allah guides us all.

[Shaykh] Irshaad Sedick
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Irshaad Sedick was raised in South Africa in a traditional Muslim family. He graduated from Dar al-Ulum al-Arabiyyah al-Islamiyyah in Strand, Western Cape, under the guidance of the late world-renowned scholar, Shaykh Taha Karaan. 

Shaykh Irshaad received Ijaza from many luminaries of the Islamic world, including Shaykh Taha Karaan, Mawlana Yusuf Karaan, and Mawlana Abdul Hafeez Makki, among others.

He is the author of the text “The Musnad of Ahmad ibn Hanbal: A Hujjah or not?” He has served as the Director of the Discover Islam Centre and Al Jeem Foundation. For the last five years till present, he has served as the Khatib of Masjid Ar-Rashideen, Mowbray, Cape Town.

Shaykh Irshaad has thirteen years of teaching experience at some of the leading Islamic institutes in Cape Town). He is currently building an Islamic online learning and media platform called ‘Isnad Academy’ and has completed his Master’s degree in the study of Islam at the University of Johannesburg. He has a keen interest in healthy living and fitness.