Q: Amaanat holdings is a property holding company that I was told was started by Moulana Ansaari and Moulana sema. It is currently managed by mohamedy Omar Paruk chartered accountants. They invest in residential and commercial property. As an investor you buy shares in the holding company, the holding company owns the shares in the various individual companies that own the properties. As a shareholder you get returns on a monthly basis based on the rentals received less the expenses, depending on your percentage share holding. However, all their properties are insured with normal commercial insurance. Will it be permissible to invest in such an investment?
A: To receive a proportion of the rental received according to your contribution is permissible. We would suggest that you avoid insurance completely. You may request the directors to inform you if there was any insurance pay out.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)