Is it religiously permissible to draw interest in Dar-ul Harb?

Details of the Question
Is it religiously permissible to draw interest in Dar-ul Harb?
The Answer

Dear Brother / Sister,

There is no drawback to a Muslim living in dar-ul harb (non-Muslim lands) receiving interest from non-Muslims because, according to them, it is regarded normal, not infidelity, to receive interest. (1)

According to other madhhabs and Abu Yusuf, interest is forbidden everywhere. It is not permissible to receive interest in dar-ul Islam (muslim lands) or dar-ul harb. It is necessary to treat non-Muslims as one treats Muslims in buying and selling things, weighing and measuring. (2)

For instance, if someone goes to Europe and finds something belonging to the state or to a person there, he has to return it to its owner. (3)

The view of Imam Azam and Muhammad stating that it is permissible to receive interest from non-Muslims in dar-ul harb is more preferable because if a Muslim deposits his money in a German bank (as a matter of fact it is not appropriate), the bank will use that money and earn money out of it; if the depositor does not receive interest, he will not earn anything and non-Muslims will mock him. (4)
 
Note : The view of Imam Azam and Imam Muhammad that it is permissible to receive interest from non-Muslims in dar-ul harb is based on the following hadith:there is no interest between a Muslim and a non-Muslim in dar-ul harb. (5)

It is halal for our citizens abroad because they act upon that hadith and the view of Hanafi madhhab. 

Footnotes:
1- al-Fiqhu ala'l-Madhahibil arba'a, 1/340. Fathu'l-wahhab 2/355.
2- al-Fatawa'l-Kubra v. 2, p. 238, Badayi as-Sanayi' 9/4378.
3- Hidaya, 2/66.
4- Halil Günenç, Günümüz Meselelerine Fetvalar, 1/243-244.
5- Zaylai, Nasbu’r-raya, 4/44; Ibn Humam, 7/ 39.

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