Can I invest in a company which runs on interest?

Answered according to Hanafi Fiqh by


Can i invest in company which runs on sood.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.


In principle interest is completely prohibited is Islam, whether one gives it, receives it, or benefit from it in any manner. Allah Ta’ala says:

وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا 

And Allah has permitted trade and forbidden interest. (Al-Baqarah verse275)


يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ (278) فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ

Oh you who believe! Fear Allah and give up (write off) whatsoever interest is left if you are believers. If you do not, then be warned of war from Allah and His Messenger. (Al-Baqarah verse 277- 278)


Regarding your query, we need you to elaborate further in order for us to respond appropriately.

What is the name of the company?

 What activities and investments take place in the company?

 What are the details of the sood and percentage etc of the sood?





And Allah Ta’āla Knows Best

Saeed Ncane

Student Darul Iftaa
South Africa

Checked and Approved by,

Mufti Ebrahim Desai.