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Investing into Companies

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Is investment halal or haram?

In the name of Allah, Most Compassionate, Most Merciful.

It is permissible to make financial investments provided they are in line with Shariah, i.e. investments in companies who have fixed assets and whose main business is of a halal nature. Allah states in the Quran, “…Allah has made buying and selling lawful and usury unlawful… (Surah Baqarah: 275)

However if one is unsure on the companies activities or on the permissibility then should take the safe option and not invest as An Numan bin Bashir (radi allahu anhu) narrates that the Prophet said “Both legal and illegal things are obvious, and in between them are (suspicious) doubtful matters. So whoever forsakes those doubtful things lest he may commit a sin, will definitely avoid what is clearly illegal; and whoever indulges in these (suspicious) doubtful things bravely, is likely to commit what is clearly illegal. Sins are Allah’s Hima (i.e. private pasture) and whoever pastures (his sheep) near it, is likely to get in it at any moment.” (Sahih Bukhari: 3.267)

And Allah knows best.

Sayeedur Rahman

Darul Ifta, Birmingham

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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