As far as Islamic Sharia is concerned, it is not allowed for a Muslim to deal with riba in a Muslim or non-Muslim country. However, this general ruling may have an exception in case of necessity and this state of necessity should be determined by a reliable Muslim scholar.

In his response to this issue, Dr. Monzer Kahf stated the correct view of Islam as thus:

‘I consider any interest-based transaction by Muslims who live in Western countries forbidden by sharia and I am not aware that the Hanafi scholars(classical views as we know them in the literature) allow such transactions. What is stated as attributed to classical Ahnaf is the issue of Dar Al-Harb (abode of war) where properties are not protected. This argument does not apply to a Muslim minority who lives in Western countries because they are not in a state of war with the countries wherein they reside.

What is left is only the matter of necessity and Hajah (considerable need) that includes many people. On this basis, the fatwa for buying houses for families that need purchased housing came from more than one source. I support this, but it does not apply to borrowing for the sake of making or expanding business.