Sheikh Mohamed El-Moctar El-Shinqiti, Director of the Islamic Center of South Plains, Lubbock, Texas, states: “Some Muslim scholars believe in some sort of a purgatory. They base their argument on a verse in suratul A’raaf, namely verse 46.
The word “al-a’raf” (the heights) mentioned in this verse, and from which the surah took its title, was interpreted by some scholars as a place between Hell and Paradise. According to this understanding, some people will stay there for some time before they enter Paradise.
There is also another way to look at the concept of ‘purgatory’ in Islam: according to some hadiths, some Muslims will receive a temporary punishment in Hell, after which they will be admitted to Paradise. The reason for this is that they don’t practice what they believe, but their belief will save them from eternal punishment.”
Moreover,Dr. Muhammad Abu Laylah, professor of the Islamic Studies & Comparative Religions at Al-Azhar Univ. adds: “Yes, there is something like that in Islam called Al-A`raf. Almighty Allah says, ‘And on the Heights (Al-A`raf) are men who know them all by their marks. And they call unto the dwellers of the Garden: Peace be unto you! They enter it not although they hope (to enter).’ (Al-A`raf 7: 46)
Al-A`raf is a place near jannah where people stay for some time before going to Paradise. We believe in that as came to us in the Qur’an without going into details because such things are related to the Unseen (Al-Ghayb) which belongs only to Allah and can be only known through revelation.”