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Is It Permissible To Invest In Unethical, but Shari’a Compliant Companies?

Answered as per Hanafi Fiqh by Seekersguidance.org

Question: Assalamu ‘alaykum. The only Shari’a compliant ETFs available invest in some unethical companies, but there is not really other options available for passive investing. Is it halal to invest in these ETFs?

Answer:

Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

Investing in any Shari’a compliant company will mean that the investment and profit are halal. However, unethical elements in a business would make it superior to avoid. The way of excellence is conduct with Allah and His creation (ihsan) would entail not being a part of something that harms others not something that robs or diminishes others of their rights.

Avoiding such matters with the intention to please Allah is something that would be rewarded. “Indeed, Allah loves those who excel in goodness.“ [Qur’an, 2:195] Look for other opportunities. Whatever you do for Allah will come back to you as some form of good, if not in this life, then certainly in the next.

May Allah grant you the best of both worlds.
[Shaykh] Abdul-Rahim Reasat

Checked and Approved by Shaykh Faraz Rabbani

This answer was collected from Seekersguidance.org. It’s an online learning platform overseen by Sheikh Faraz Rabbani. All courses are free. They also have in-person classes in Canada.

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