BANKING - TAWARRUQ - Tawarruq in Islamic banking is usury: IDB - ongoing controversy

Islamic banks which enforce Tawarruq in their financial and investment operations are involved in usury, which is prohibited in Islam, a senior scholar from the Islamic Development Bank (IDB) has said.

Sheikh Mohammed Mukhtar Al Salami, Head of the Sharia (Islamic) Panel in the Jeddah-based IDB, said many Islamic banks have been involved in such an investment tool in the Islamic banking industry.