Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

What if the company in which a person is going to invest is dealing with capital interest as of today no business runs without the help of banks or if the owner of the company is a kafir. Please answer, Jazakallahkhair

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Working kaafir company

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: …..or if the owner of the company is a kafir.

Provided the work or job one does is not of an unlawful nature in its essence, the belief of the owner of the company is absolutely immaterial….for a believer is at absolute liberty to work for (or employ) a believer or a non-believer in Islam.

Your Question: …..What if the company in which a person is going to invest is dealing with capital interest as of today no business runs without the help of banks

According to the view of most contemporary scholars in Islam, investment in shares and/or the stock market in its essence is permissible in Islam, provided the following guideless are honored:

The three main factors that make an investment in shares and stocks haraam according to the scholars is as follows:

1.      The company should not deal exclusively in a product which is declared haraam in its essence in Islam. Eg. alchohol, prostitution, usury, pork, etc.

2.      The company should not deal in a product which is used to harm a muslim country. Eg. Arms manufacturing in a pagan country, etc.

3.      Only the pure buying, holding, and selling of stocks is termed halaal by the scholars. All types of other derivative transactions like shorting the stock, buying calls, selling calls, buying puts, selling puts, straddles, or any other variations and derivatives are not lawful.

If one wishes to invest in an individual or private company, it would obviously be best that one do so only on the condition that the company shall not indulge in anything which has been specifically declares as ‘haraam’ or unlawful in Islam.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan