QuestionsCategory: FinanceIs Investing in Shares Permissible?
Anonymous asked 2 years ago
Assalamualaykum warahmatullahi wabarakatuhu. Please could you find out if investing in shares is permissible. There is a link attached from an Islamic company that does it on your behalf and they take a few for it. There are other companies that offer similar “Islamic compliant” investments. They say they only invest in shares which are consistent with Islamic values eg not in tobacco/ alcohol/ interest based organisations. Would it be permissible to do such investments? Jazakallahu khayrun.
1 Answers
Mufti Wahaaj answered 2 years ago

بسم الله الرحمٰن الرحيم

الجواب حامداً ومصلياً

As-salāmu ʿalaykum wa-raḥmatullāhi wa-barakātuh. Permissibility of Owning Stocks Muftī Taqī ʿUthmānī حفظه الله is of the opinion that owning stock is permissible on four conditions [[1]:
  1. The core business (primary activity) of the company should be in accordance with the Sharīʿah. Therefore, it is not permissible to own stock in companies whose main income is derived from ḥarām things such as providing services on interest, casinos, pork, liquor, and other ḥarām food and drink.
      • Note 1: The core business being Sharīʿah compliant is defined as “the corporation does not state in its memorandum of association that one of its objectives is to deal in interest, or in prohibited goods or materials like pork (swine) and the like.”[2]
      • Note 2: The core business is different than the majority of the business. No more than 5% of the company’s total income is allowed from a prohibited source.[3]
  1. If, despite the core business being ḥalāl, the company engages in interest-bearing transactions, the shareholder should express their disapproval – preferably by raising their voice in the shareholder meeting.[4]
  2. If some of the company’s income is from interest, the percentage that interest makes up of the company’s total income must be deducted from the dividends received and then donated.[5] For example, if 5% of the company’s profits are from interest, 5% of the value of dividends received must be given in charity.
      • Note: Most who deem this permissible stipulate that the interest-earning deposits to total market capitalization ratio must be less than 30% and the interest earned on these loans should be less than 5% of total revenue.[6]
  1. The company must have some non-liquid assets – although there is not a set percentage that non-liquid assets must make up of the company’s total assets:
  • The amount of non-liquid assets should not be insignificant.
  • The price of the stock should exceed the proportion that liquid assets comprise of the stock.
      • For example, if a share of stock has the value of $100 in which $75 is cash and $25 represents non-liquid assets, the stock could not be sold for $75 or less.[7]
If these conditions are met, owning stocks (whether individually or in a mutual fund[8]) will be permissible.
  • It should be noted that the sale of options, short sales, future sales, and forward sales are not permissible.[9]
Wahed Invest Wahed Invest's Sharīʿah compliance has been confirmed by notable scholars and bodies. Investing with them is permissible. Please note that this is simply a statement on permissibility. It is not an endorsement of any product/organization. والله تعالى أعلم وعلمه أتم وبه التوفيق And Allāh Taʿālā Knows Best Muftī Mohammed Wahaajuddin bin Salauddin (May Allāh forgive him and his parents) --

[1] An Introduction to Islamic Finance by Muftī Taqī ʿUthmānī, Pages 207-210, Maktaba Ma’ariful Quran

[2] AAOIFI Shari’ah Standards, Standard 21, 3/4/1, Page 563

[3] AAOIFI Shari’ah Standards, Standard 21, 3/4/4, Page 563

Islamic Finance (Meezan Bank-2015 Edition) Page 289, Maktaba Ma’ariful Quran


فقه البيوع،  ١٦٨-بيع أسهم الشركات، ص٣٨٢، مكتبة معارف القرآن

إن حامل السهم يجب عليه أن يرفع صوته في الجميعة العمومية ضد الإققراض أو الاقتراض الربوي


فقه البيوع،  ١٦٨-بيع أسهم الشركات، ص٣٨٢، مكتبة معارف القرآن

ولكن إذا رفض صوته بالأغلبية، ودخل هذا الكسب المحرم في أرباح الشركة، فإنه يجب عليه أن يتخلص من هذا الكسب المحرم بالتصدق بما يساوي حصته من الإيراد الذي دخل في الشركة تبعاً من خلال هذا الإيداع.


فقه البيوع،  ١٦٨-بيع أسهم الشركات، ص٣٨١-٣٨٢، مكتبة معارف القرآن

أما إذا كانت الشركة نشاطها التجاري حلالاً، ولكنها تودع فائض نقودها في البنوك الربوية، وقد تقترض منها قروضاً ربوية، فاختلفت أنظار الفقهاء المعاصرين في جواز شراء أسهمها. فقالت جماعة من العلماء: إنه لا يجوز شراء أسهمها، لأن حامل السهم يشارك في هذه العمليات المحرمة، فكان مثل شراء أسهم الشركات التي نشاطها التجاري حراماً. وقال الآخرون: إن إيداع فائض النقود في البنوك الربوية عملية منفلصلة عن نشاطها التجاري، فلا يؤثر على أصل النشاط، بشرط أن يكون قليلاً بالنسبة إلى نشاطها الأساسي، وقدره أكثر المجيزين أن يكون مثل هذا الإيداع أقل من ثلالثين في مائة بالنسبة إلى قيمة موجوداتها، والعائد الناتج منها أقل من خمسة في مائة من مجموع إيرادتها.

AAOIFI Shari’ah Standards, Standard 21, 3/4/3, Page 563

Islamic Finance (Meezan Bank-2015 Edition) Page 291, Maktaba Ma’ariful Quran

[7] Islamic Finance (Meezan Bank-2015 Edition) Page 294 Maktaba Ma’ariful Quran

Share Trading (

[8] Islamic Finance (Meezan Bank-2015 Edition) Page 287-300 Maktaba Ma’ariful Quran

[9] Islamic Finance (Meezan Bank-2015 Edition) Page 296 Maktaba Ma’ariful Quran

Options – Calls and puts | Tawheed Center - Farmington Hills