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Interest bearing investments

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: On one of your responses on this site, you have mentioned that if a person has come into possession of interest he should distribute it to poor and needy people. If a business is forced (the business has to comply as it is a requirement of the non-muslim government and will not be allowed to operate should it refuse to do so – the interest is earned by keeping cash as securities in a fixed account) to conclude an investment that will generate a substantial interest return, such that the entity decides to employ a full time dedicated employee in order to ensure that the interest money is disbursed properly to various poor and needy organisations, is it permissible to remunerate the said employee from the interest funds bearing in mind that the employee is a Muslim and not zakaatable? Does the money become halaal for that person?

Bismillaah

A: We suggest that you do not go for such an investment.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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