Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
In Islam, it is not permissible to invest in companies involved in haram products such as alcohol, pork, or unethical practices. Supporting or profiting from such activities is viewed as promoting the haram. Instead, Muslims are encouraged to invest in businesses that are halal-compliant or consult certified halal investment agencies for guidance.
In responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states,
Is Investing in Haram Businesses Permissible?
Investing in company shares that deal with haram products (whether pork, alcohol, and so on) is not permissible in Islam. If something is declared haram, a Muslim must abstain, not only from involving himself in it, but also from promoting it.
By buying shares in such companies, one is committing the offence of promoting what is haram. Therefore, no Muslim should even contemplate doing such a thing.
Therefore, Muslims who wish to invest to look for those businesses that do not deal in haram products or practices.
Does Buying Shares Equal Supporting the Haram?
Buying shares in companies that deal solely in high-tech products, dairy products, and so on, might fall under this category.
Sometimes, an individual Muslim may find it hard to keep track of the policies and business practices of such companies so as to ensure that they are entirely free of involvement in haram. If that is the case, then a person is best advised to entrust this decision to those agencies which specialize in monitoring companies for their halal practices.
It is fortunate that there are no shortages of halal investment opportunities that are strictly based on clear principles of halal and haram. It is recommended to get in touch with them.โ
Gain a more complete understanding through the fatwas below:
- Buying Shares or Investing in Companies with Haram Products: OK?
- Can We Make Shares in Business as Waqf to Help Orphans?
- If the Stock Splits, Does that Make it Haram?
- Company Dealing in Lawful and Unlawful Transactions: Share?
- Working at a Call Center Facilitating Stock Exchange Marketing and Sales Services: Permissible?
- Is Investment with Borrowed Money Permissible?
- Is Investing in the Stock Market Haram in Islam?
- It Is Halal to Invest in Insurance Companies?
- Is It OK to Invest Zakah Money?
- Is Investing Mahr Money Permissible?
Almighty Allah knows best.
Editorโs note: This fatwa is from Ask the Scholarโs archive and was originally published at an earlier date.