Frequently Asked Questions

What is the purpose of First Global Investments existence?

FGI is an organization which provides competitive Islamic banking solutions with an innovative and unique range of products and services. It was established in 1999, with an intention to expand globally.

What is the advantage for customers in opting for First Global Investments

At FGI, we constantly strive to provide financial solutions that meet the requirements of our customers. FGI offers Islamic banking solutions which combine our financial expertise with your enduring values. Further, a depositor with minimum one million worth of deposit will be provided a safe deposit locker for one year free of charge.

Who are the current First Global Investments Holdings board of Directors?

The FGI Board comprises five internationally reputed and experienced professionals namely Sayed Majid Bader Al Refai (Chairman), Muhammad Ikram Thowfeek (Founder, Managing Director), Dr. M.A.M. Shukri (Director), Rushdi Azeez (Director) and Jumah Khamis Al Shahwani (Director).
Please click detailed Directors profile.

Who are your Shari’ah Board members and what is their role?

The FGI Shari’ah Supervisory Board currently comprises four of the most eminent scholars in the field of Islamic banking: Sheikh Esam M. Ishaq, Sheikh M. Yoosuff Muhammed Haniffa, Sheikh Mohamed Burhan Arbouna, Sheikh Muhammed Al Amine and Sheikh Daud Bakar.The role of these scholars is to review the operations of FGI and monitor its development of Islamic products, and determine the Shari’ah compliance of these products. Please click detailed Shari’ah Board members profile.

What constitutes Riba?

Simply, ‘riba’ is an Arabic terminology of the word ‘interest’. "Any amount, irrespective of significance, over the principal, in a contract of loan or debt is ‘riba’, which is prohibited by the Quran, regardless of the purpose of the loan".
Riba has been classified into two as Riba al-Nasee´ah and Riba al-Fadl. The type of riba associated with interest is Riba al-Nasee´ah, also known as Riba al-Quran or Riba al-Jahiliyyah. It is collected in compensation for deferring a due debt. This definition applies regardless of the source of the due debt: whether it resulted from a loan or a deferred price in a sale. The prohibition of this form of riba is primarily based on the following verse of the Quran:
"You who believe, heed Allah and write off anything that remains outstanding from lending at interest if you are [true] believers. If you do not do so, then be prepared to face war declared by Allah and His messenger! If you repent, you may retain your principal. Do not wrong [others] and you will not be wronged. (Al-Quran 2:278-279)"

Why has Riba been prohibited by Allah?

"And if you repent (from charging interest) then you are entitled to your principal. Neither wrong nor be wronged." (Al-Quran - 2:279)
As is evident from the verse quoted above, the rationale behind the prohibition of interest in Islam suggests an economic system where all forms of exploitations ("neither wrong nor be wronged") are eliminated. In particular, Islam wishes to establish justice between the financier and the entrepreneur: the financier should not be assured of a positive return without actively involving in managing the business or sharing in the risk, while the entrepreneur, in spite of his management and hard work, is not assured of such a positive return.

Is it permissible to charge a fee for any late or partial payments? If so, is this acceptable under the Shari’ah?

We may charge an administration fee for any late or partial payments but this cannot be charged to cover opportunity cost. According to the Shari’ah, such a fee can be charged in order to encourage financial responsibility and to recover administrative expenses. This charge is not interest, and does not reflect the interest rate. If the fee paid is exceeds our actual expenses incurred, we will donate the excess to a public charity of our choice under guidance from our Shari’ah Supervisory Board

Islam prohibits Bai´ al-Inah, which is "If a person sells an article on credit and then buys it back for a lesser price on          cash." Why then is a spot sale and lease back allowed?

In the case of sale and lease back with eventual sale back to the original seller with certain conditions is different as sale and repurchase by original seller has a contract of lease in between, which nullifies the prohibition of ´inah.

What is the Shari'ah ruling in regard to the issuance of certification for a client that states that he has a balance in his         account for a specific amount when, in fact, he does not possess that balance?

Certificates granted concerning account balances must be in keeping with the truth. If the patron has no balance in his account, he may be loaned a sum for his account and given a certificate to that effect.