Fatwa ID: 07344

 

Answered by: Muftiyah Habiba Akhtar

 

Question:

 

I have a question regarding investment and interest and if you could clarify it would help a lot. My brother is starting a reselling business with clothing where he buys from the website and sells at a higher price as there is limited stock. I asked him if I could invest a certain amount of money to pay for the clothing and then as a return, get the money I invested back plus 25% of the profit he makes on that item. We were having a debate on whether this is interest on a loan or a halal investment in a business. If you could clarify for us it would help a lot Jazakallah

 

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

Regarding the investing in shares, scholars have different viewpoints as some deem it be avoided at all costs and some believe it is permissible within the boundaries of some conditions.

 

Investing in shares has many reasons to be deemed impermissible, unless the nature and background of the entire process meets the following 4 conditions:

 

1. The actual business or company is halal in itself and deals with what’s halal
2. The company’s assets should have some fixed form assets rather than liquid assets
3. The voice must be raised against a company that deals with debts or interest
4. When distributing the profit, whatever amount is made up of interest must be given in charity (1)

Investment is growing your wealth by inserting a certain amount of wealth to potentially receive a greater amount.

 

Thus, if you meet the above criteria, that will be considered halal investment. The return you receive from the investment will be halal and permissible. It will be considered a profit. Profit is exchange of money for money with an agreement that causes no harm or difficulty on another which interest does do. (2)

 

Hence, the return from your investment is a part of your earning from your investment and is a profit not interest.

 

 

Only Allah knows best

Written by Muftiyah Habiba Akhtar

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

 

 

(1)

ادپر کی تفصیل سے یہ معلوم ہو گیا کہ شیرز کی خرید و فروخت کے جواز کے لئے کل – چار شرطیں ہو گئیں:

(1) اصل کاروبار حلال ہو۔ (۲) اس کمپنی کے کچھ منجمد الاثے (نکسڈ ایسٹس ) وجود میں آچکے ہوں۔ رقم صرف نقد کی شکل میں نہ ہو۔ (۳) اگر کمپنی سودی لین دین کرتی ہے تواس کی سالانہ میٹنگ میں آواز اٹھائی –

جاۓ۔ (۳) جب منافع تقسیم ہو۔ اس وقت جتنا نفع کا جتنا حصہ سودی ڈپازٹ سے ۔ حاصل ہوا ہو۔ اس کو صدقہ کر دے۔ ان چار شرطوں کے ساتھ شیرز کی خرید و فروخت جائز ہے ۔

Fiqhi Maqalat, Vol 1 Page 150-151, Mayman Islamic Publisher

 

 

 

(2)

قوله تعالى: واحل الله البيع وحرم الربا” لما كان من ظنهم التسوية بين الربا والبيع؛ لأنهم رأوا أنهم إذا اشترى الرجل مالا يساوي درهما بدرهمين جاز هكذا اذا باع درهماً بدرهمين جاز؛ إذ لا فرق بينهما في المعنى، رده الله تعالى وقال: وأحل الله البيع وحرم الربا إنكاراً للتسوية . وتحقيق هذا المقام أن البيع مبادلة مال بمال بالتراضي على وجه التجارة مافيه مشقة من العمل، وليس كذلك الربا، لأنه ينبئ الزيادة من غير مشقة من العمل . مع إلقاء غيره من النفوس على الخطر

Tafseer Ahmadi, Volume 9, page 506, Maktab Islamiyyah