What is the ruling of Islamic law on pawning a piece of gold with a financial entity, receiving part of its value, and then retrieving it by paying the received amount plus an additional percentage under the name of safekeeping or interest?

There is no dispute regarding the permissibility of pawning, and it is permissible to pawn gold. The majority of scholars hold that the expenses and maintenance of the pawned item are borne by the pawner, while the Hanafis are of the view that the cost of storage is borne by the pawnee.

Accordingly, there is no impediment to pawning gold as collateral for a loan, provided that the storage fee is not excessive, thereby becoming an usurious interest.

However, if the money taken is the price for the gold, then the transaction is a currency exchange (sarf), which requires immediate possession (taqabud) in the same session of the contract; otherwise, it is invalid. Furthermore, such a transaction falls under the category of a "buy-back sale" (bay' al-wafa), which is forbidden because it is a stratagem for riba (usury).