SHARIAsource

This fatwa acknowledges that a conventional export letter of credit does not accord with shari'a principles. It defines a shari'a export letter of credit as a declaration, issued by a bank, to pay an exporter, in accordance with shari'a principles. Shari'a export letters of credit may be implemented pursuant to the following agreements:

1. Wakalah bil Ujrah;
2. Qardh;
3. Murabahah;
4. Musyarakah; and
5. Al-Bai'.