Job as a financial manager.

Answered according to Hanafi Fiqh by Askimam.org

I have a question to ask regarding my career. I am asking you as I feel you are very knowledgeable in other matters of life too. My local imam’s are not much aware of other aspects other than Deen. 

My question is whether as a Muslim, can I choose to be a Finance Manager? I ask this question because I heard that it has to do with the interest (Riba) and other such things which aren’t permissible in Islam. In addition to this, I would also like to know about Investments in Islam. 

Answer

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

As-salāmu ‘alaykumwa-rahmatullāhi wa-barakātuh.

  1. In order for us to advise, what will be the role of the financial manager?

 

  1. One may invest his money to earn profits primarily through the following two modes of investment:
  • Musharakah – A joint commercial enterprise enacted by mutual agreement wherein two or more partners invest some of their capital or undertake to render some services to customers in which all the partners share the profit or loss of the joint venture on an agreed ratio.
  • Mudharabah – A partnership wherein one partner provides capital to another for commercial investment with only the second partner being responsible for management and work. Profits and losses are shared at an agreed ratio.

 

The above is a brief explanation on the two modes of investment. For further details on these, you may refer to the book “An Introduction to Islamic Finance” by Hadhrat Shiekh Mufti Taqi Uthmani Sahib Mudda Zilluhu. It is available at the following link:

 

http://daruliftaa.net/index.php/resources/publications/finish/27-publications/279-an-introduction-to-islamic-finance-mufti-taqi-usmani

 

 

And Allah Ta’āla Knows Best

Abdullah Ghadai

Student DarulIftaa
Michigan, U.S.A 

Checked and Approved by,
Mufti Ebrahim Desai.

 

 

 

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