What is Halal Investing? With Sheikh Dr. Yasir Qadhi



a lot of Muslims ask what exactly is halal investing and what makes an investment Haddad now obviously you know there's a technical and much more legal side that we can go into a lot more detail but for the purposes of this video realize that in order for an investment to be had on a number of basic conditions need to be met first and foremost to the company itself has to be something that is ethical something that is permissible a Muslim is not allowed to invest in anything that will increase immorality that will increase any type of substance abuse or or alcohol or drugs or maybe even investing in companies that promote weapons of mass destruction we as Muslims we are ethical we're not allowed to invest in something that's going to harm other people harm them physically harm them emotionally so we Muslims do not invest in any company that deals with harmful substances or that deals with matters that is going to impact the environment in a very negative way these are things that were very cautious about the second condition which is one of the most difficult ones to meet and that is the condition that we as Muslims we avoid interest or River we know in the Quran that Allah subhana WA Ta'ala has considered RIBA or interest to be one of the most major sins and our prophet salallahu alayhi wa seldom called it a Kabira a a major sin and it is the only sin in the Quran that Allah subhana WA Ta'ala has said anybody who deals with this it is as if he has engaged in war against God himself against Allah himself so we have to avoid companies that are dealing blatantly in RIBA now there are some technical aspects here that our modern scholars have derived because it is almost impossible to find a company that is 100% labor free so given the dynamics that we find ourselves in the Nama that are specialized in Islamic finance they have come together and they have formulated some reasonable conditions that small percentages are forgiven and overlooked insha Allah and this is something that you will find in the legal and technical documents and there are other conditions as well of them is the ass to debt ratio that is found in companies so there are a number of technical conditions that you will find in the books of v and in modern fetters of islamic finance and that is why it is so important that you find a company that has a area board that is looking into each and every business transaction looking into each and every company and assessing whether these companies fit the criteria of halal investing

14 thoughts on “What is Halal Investing? With Sheikh Dr. Yasir Qadhi

  1. I just want to know about trading not investing,
    Investing in a share market which deals with alcohol etc. It is haram
    My question is
    Trading in equity share market which doesn't deal with alcohol , finance , film etc is it haram ?

  2. It is mentioned by the Syeikh that this type of Halal Investing is not 100% Riba Free, Then could you please tell us briefly what is the number one basis (Quran/Hadith/Fatwa) which allowed this type of Investment?

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