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Is Investing in the Stock Exchange Halal?

Answered as per Hanafi Fiqh by Seekersguidance.org


Is investing in the Stock Exchange halal?

Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

The investment industry is riddled with practices that do not comply with Islamic Finance ethics. This ranges from gambling to interest. Many practices, such as hedging, are questionable at best.

The detriment of earning one’s income from such means is clear, and the lack of baraka is also palpable. The recent fiasco with GameStop is a clear example of this.

Investing in the stock exchange is only permissible when certain conditions are met. You can find them in this answer. Otherwise, it is better to look for an alternative means of earning an income. Trust me, you will be much safer this way on the Day of Judgement.

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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