Q. In an article I have read, it is mentioned that according to the Hanafi Math-hab, interest is permissible in Darul Harb. Most of the kuffaar countries have been classified as Darul Harb. Is it permissible for Muslims to enter into interest dealings with non-Muslims in these countries which are Darul Harb such as the USA, UK, etc.?
A. Forget about Darul Harb. Understand well that interest is Haraam. In a state of war/Jihad when it is lawful to take the life of the kuffaar, then to a greater degree will it be permissible to take their wealth which will be classified as spoils of war. Even in a valid Darul Harb it is not permissible to give the kuffaar interest. Those who say that interest dealings with the kuffaar are permissible in the U.S., U.K and similar other countries which are enemies of Islam, are ignorant. The objective is gratification of their monetary lusts by presenting the subterfuge of Fiqhi technicality of ‘Darul Harb’ which is not applicable to the current scenario. The Muslim citizens of these countries, even if classified as Darul Harb, are not permitted by the Shariah to engage in acts of war whilst living as subjects of these states.

MAJLIS 23/12