Hacene Chebbani – Screening of the Shares in the Stock Market

Hacene Chebbani
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The speakers emphasize the importance of Halal businesses in the market and emphasize the need for further research on the topic. They stress the importance of certain metrics for companies' decision-making, including the number of companies in top 10, ins in top 10, and employees. The speakers also emphasize the importance of minimizing evil and maintaining financial freedom, as well as the use of money in investing or buying businesses and dealing with banks and credit cards. They suggest individuals should go through brokers or investment companies to avoid confusion and make sure they are not investing in the wrong things. The potential for trading with international platforms and the use of credit cards as an alternative to paying for expenses is also discussed.

AI: Summary ©

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			kondalilla salatu salam ala Ashrafi Musa ncnm hamadryad ADUs ivh Re.
		
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			So as as promised before, we'll be talking tonight inshallah about Sharia screening of shares in the
stock market at
		
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			best, basically we'll be talking about insha Allah
		
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			the the methodology that is used now by some Sharia indexes in the stock market and what is the
background of this methodology? And what are the options that are available for Muslim investors
today. So, when talking about companies that are publicly traded in the market, there are three in
principle there are three types of companies. The first type of these companies, they are non Sharia
compliant, that means their core activity, their main activity is haram is not permissible. Either
they're involved in entertainment or gambling, or alcohol or pork and related products, or weaponry
or anything that is not permissible in the Islamic Sharia. So, these companies, which have, you
		
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			know, their core business activities that are not compliant with the Sharia are excluded from this
discussion. An older older man said that we are not allowed as Muslims to invest or buy the shares
or own the shares of these companies. Second type of these companies, companies that are fully
compliant that have fully complied with precepts of Sharia, the teachings of the Sharia, so that
means their products are halal. You know, they are involved in producing Halal ingredients or Halal
items. And the financing is halal, too. They go through equity financing hula, they don't deal with
credit lines, you don't take loans from banks.
		
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			So all the irlam agreed that it is majority majority actually have their own AMA, they said
		
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			they said that it is permissible, Muslims are allowed to buy the shares and you know the of these
companies and sell them again in the market. The bad news is that these companies do not exist in
North America. They do not exist in the West in general. Some of them exist do exist in Malaysia, in
Singapore, maybe the Gulf countries, or Qatar, like Saudi Arabia, like Sudan, some other countries,
but they don't exist in the West. So now, we need to talk about the third type of companies that are
involved mainly in Halal business activities. They're the core, you know, their core business
activities are compliant with the Sharia. But at the same time, their financing is not compliant. We
		
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			deal with riba they deal with interest or some of their activities and not compliant with the
Sharia. So, these companies are called they have mixed activities. And they are the subject of our
discussion discussion tonight.
		
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			Because some have said that Muslims are allowed to invest in these companies through a certain
specific methodology that is provided by those Sharia indexes that are filed now in the market like
SMP share index or Dow Jones Islamic index, or other indexes that are footsie in the UK in Europe,
that are available in the market today. So in Arabic, they are called as homerun Matata. oshi cater
to assuming Matata and if you had halal or haram to some majority of you know, these companies or I
see majority of their activities are halal and compliant with the Sharia. But they are involved in
some haram activities and they deal with riba the take loans from the bank deposit their their
		
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			money, their capital in the bank and the earn some interest. So we have a mixed you know,
ingredients. There are two opinions and all the most of the Islamic investment companies in the
West.
		
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			Most of them who tell you are method and following certain criteria, s&p criteria or Dow Jones, they
are following this criteria. They are following they're talking about the opinion of this group of
scholars Zedd it is Helen and they have a criteria background. We'll talk about it today in sha
Allah. Some other scholars they said they're not halal, but we, my job today is to tell you tonight
is to tell you the opinion the two opinions, their proofs in sha Allah, and then I'll tell you the
background
		
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			Have some numbers that are found in the criteria. Unfortunately, I don't have here. Hopefully we can
have a document to show you at least about one or two products that are available in Canada.
		
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			So, we have the first group of Rona and Sherry Iboats
		
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			V said that Muslims, they have permitted permitted Yianni they said Muslims are allowed to trade the
shares of these companies through a specific criteria
		
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			filtration process, there is a filtration process and this role, they have their criteria. And
through this criteria, the filter these companies and these companies are monitored. These indexes
are monitored through different group of scholars, every every index has its own Sharia board, like
here, the
		
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			s&p and TSX 60. Sharia, they have four or five scholars, Muslim scholars who are monitoring this
index, usually on a quarterly basis every three months, or four months, they have to monitor this
index and see if all the companies that are included in this index elk are in line with the criteria
of this index. If they are not, they will just take them out. And they might include other
companies. So it's an ongoing work that they do every three months or every four months. And they
have a filtration part of this filtration process or this whole process, there is something called
purification process. So they tell you that there is a small amount of haram there and they tell you
		
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			how to purify your income. After you make some some profit.
		
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			You don't have as an individual you cannot have access to these indexes, you have to go through a
broker or an investment company.
		
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			Now who are these scholars who said that these criteria is halal and these companies can be or the
shares of these companies can be used can be bought and sold in the market. Through this specific
criteria that we'll mention we will mention today insha Allah. The first group is a rush a bank
Sharia board, and they are based in Saudi Arabia. And the second one is Sharia committee of the
Jordan Islamic Bank and Bank will order nearly slamming. The third one is the Sharia advisory board
of Al Baraka bank and I think it's based in Bahrain, but it has many branches in different
countries. And it was the decision of the six symposium with Al Baraka banking group in Bahrain. And
		
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			among the early AMA, Mohammed bin Salah Lebanon, they mean number one, and he's a senior, he was a
senior scholar in Saudi Arabia, he passed away may Allah have mercy on him. Abdullah bin many one of
the senior scholars in Saudi Arabia and he was a member of at Loyola met. Council of Senior Scholars
at Barack Obama in Saudi Arabia is still alive. Dr. Nezzie Hamid is a Syrian scholar who graduated
from Alaska University long time ago he used to teach in Ankara University, a member of one of the
first Muslim academies, one of them and now he lives in in Canada in Vancouver. He is a Canadian
scholar. And Dr. Mustafa Zarca, was a Hanafi scholar lived in Jordan. And he passed away Rahim Allah
		
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			moved the taxpayers money, a great scholar from Pakistan and he specialized in the field of finance.
And also Dr. Ali mohideen core al Qaradawi, from Qatar among other scholars, these are examples
		
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			and so what are the proves most of their proves those group of scholars interiores who said it is
halal to you know, trade the shares of these companies most of the approves a legal fiction Maxim's
though right here. So, we use this coverage for Pierre to justify or to support their opinion, the
first car that the views as usual tuber and Malaise users declined. This is not an error from the
Quran, this is not a hadith, but this is a principle of principle. So this cover it clears this you
know, legal maximum or legal fiction Maxim's were developed in our history when the old ama used to
deal with fifth and 15th matters, we will deal with some matters method and in the area of Tahara.
		
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			And then the area food institution the area of bluer and then they will find that there are some
similarities with their principles. And then you come up with a rule general rule that include many,
many marketers have.
		
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			So here you choose whatever and manage users the client didn't come up with it without any proof.
They looked at some ahaadeeth method for example,
		
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			till the sale of immature fruits, by itself is haram is forbidden in mature fruits from the trees.
But if the seller is selling him the trees whole garden, he can include the immature fruit fruits,
and he can increase his allowed to increase the price because of these fruits. So now it's Helen,
it's Helen. So this is a something that is agreed upon by all the scholars by themselves. They are
not It's not permissible to sell them by themselves, because they might, they might be affected in
the future and the buyer will just give his money loses money, right? Because you don't know what
will happen to this fruit. This is an example. Sale of young animals in the wombs of their mothers,
		
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			it is haram. But if you sell the cow which is pregnant with the young animal in its womb, it's Helen
even if you increase the price, because it is attached to the main subject of sale, it is not the
main subject of safety. In the first example the main subject of sale are the trees the garden
itself. So the earlier we looked at these, you know, different Faircloth matters, matters of fact,
and then he came up with this rule, you choose whatever and manage users to clan. So this rule Emma
use this FIPPA Maxim, they said this small amount of riba or small amount of non Sharia compliant
activities or ingredients or amount of money or income that is there that's coming from haram
		
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			incomes. It's small is not the main subject of sale, the Muslim investor is buying shares of these
companies because the main or the core business activities of these companies are halal are
compliant with the Sharia. So this haram amount of ingredients are only attached to it. That is
their their argument will allow to add this argument was refuted by indifferent to any ways. The
first answer was a refutation. Was that legal FootCandles illegal fake Maxim's do not have the power
of the idea. The ayat from the Quran or the Hadith of Rasulullah sallallahu it was said and they
said this FIP he Maxim was used to justify the sale of things that are halal by themselves. You
		
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			know, the animal young animal in the in the womb of its mother. It's Halal by itself. It's an animal
that is halal to sell fruits that are halal to sell. He said but haram ingredients in or in interest
income in these companies is not held whether it is sold by itself or attached to something else. So
they are trying here to answer their argument. And they said this, this fifth P or maximum could be
challenged by other 4k Max seems like we have another fake maxim that says they're all my first
mukade terminology and Bill Masada, the royal family said you know repelling evil takes precedence
over securing a benefit. If you have the choice between two things here you need to either you do
		
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			this thing you repel an evil or the other choices you bring a benefit to yourself. And you don't
have you have only these two choices either you do this one or this one. So the odema they said
repelling evil more cut them they're all my first CD mocha demo knowledgeable masala This is another
car either another 50 maximum that my challenge the other 15 maximum that used the second proof they
said the hazard to
		
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			tuna Zulu Mozilla to the rural HERSA and need that is of a public nature could could be treated like
a personal or private the rural private necessity private necessity I will tell you about it method
someone is traveling in the desert and he won't show it to food he doesn't have food now. He doesn't
have water it is halal for him if he finds pork to eat it. This is a personal dharuhera Personal why
it's personnel is private. The photo is given only to this person is not a general fatwa that is
that can be given to all people hey people if you are hungry, you can eat from pork no you cannot do
that. This is a person one person who who found himself in this situation. So Sherry is giving him a
		
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			concession This is a private the rural Casa Luna todo el * Alam and need that is of a public
nature. Anyone Haram is everywhere. In all our business transaction Imam is of no have the seller is
that either I'm Mahara mill or the Kula fella who who Dhamma issue be and if Haram is everywhere,
all transactions or jobs of Hara, then you can actually benefit
		
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			on these things these items to survive, because you need to survive that is the statement made by
lazy Bernarda, Salem in his book sell cowhide. So, they looked at this guy they said this is
actually a general the general state now of all companies are most of them majority big majority of
these companies are they have these problems they have to deal with interest in a credit lines, they
deposit their monies in money in the banks and and the the said this idea or this principle is taken
from politer Allah, the ayah in the Quran or Masha Allah, Allah COVID, Dinniman Harish so they said
Allah subhanaw taala said and he has not placed upon you in the religion, any hardship. Now, their
		
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			argument, they said, people, this is their argument, though they use the fuck a maxim and the ayah.
And he said people need to invest their savings, because not everyone is able to, you know, to do
business to establish his own business, you have savings in the bank, Matheran worth 30,000 40,000.
But you cannot, you don't have the ability, because you're not a business person, you don't have the
ability to establish open a store, or establish your own business. So they said the best way now for
you for modern Muslims is to invest their money in these investment vehicles or in these companies.
And this is also the state needs to encourage people to invest their savings to, you know, support
		
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			the economy. This is an argument that is found both in Muslim and non Muslim countries. So this
argument was was refuted on the basis that the need in Sharia because in Sharia, our needs are
divided into three, we have a double rot, which is extremely necessity, like the person traveling as
I said, in the desert, and he didn't find food, so he's allowed to drink alcohol, or eat from pork
to survive. This is the rule. The second one, the second level is alhaja. What is the definition of
alhaja if you don't do it, you will face hardship and difficulty and l camera yet or tasin. Yet
camellia luxuries. If you don't go to bed, if you don't take family to your family to bed, you're
		
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			not going to die. You still you'll be okay. You'll be fine. So this is a luxury right? So three
levels of needs. So here the warning in the middle. They said actually, the fulfillment of need for
needs in Syria is only justified to remove hardship. Marcia comment and why do we take insurance for
our cars, because it's extremely difficult to survive in this country or other countries without
cars, right. But insurance by itself is haram. But because it has horror the main element is
resilience, but then a little bit different than Reba. Reba is not tolerated in Sharia. A certain
amount of horror of uncertainty could be tolerated especially when there is a need here. Because we
		
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			have a need we will face difficulty it will be difficult extremely difficult for us as Muslims to
sometimes not to take some benefits some health benefits, not to have coverage for example, or not
to have a car. So here the family said Muslims will not face any difficulty that is the argument of
those who are refuting their the second daily the second proof, they said Muslims will not face any
difficulty of hardship. If they don't invest their money in this companies will love to add the
third proof. They said there is a car either for PA another 15 maximum that says you know lil
Aksaray Hawkman cool, Avila B hookman cool. So, if we have an entirety we have something and it is
		
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			divided into two parts. The major parts of these things is halal is pure for example, is not nice,
for example, but there is small amount of haram or Madonna if we talk about food. They said methanol
when making some types of cheese.
		
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			They use a huge amount of milk and they put small quantity of rain at or pepsin in it. So many erla
Melissa, don't worry about it. It's only small Aqua quantity. So they're looking at the ruling of
the major part which is milk here. It's Helen. So this is another 15 maximum that says a small
amount of non permissible ingredients will not affect the whole quantity of Halal ingredients. And
this of course, this guy has also applications in the web in the chapter of taharah and some other
chapters. They are fourth proof. They said malah MQ taharah zoominfo for whoever won, and this is
another kind of a key, another 50 Maxim. Anything that is impossible to avoid is overlooked. For
		
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			example, I'll tell you example if a female a Muslim lady
		
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			does not find a female doctor. She has to go and see a male doctor right? And he might see her IRA.
He might look at her body right? When dealing with treating this woman. So Hi there, I'm really
looking to her resume No, it's impossible impossible to avoid, right? So the fuqaha they said they
have discarded anything that is impossible to avoid, is overlooked in Sharia Sharia the morality
less than this is part of the Mercy of Allah subhanaw taala Oh, someone has to take matter in the
street or a road and the whole area is affected with Nigeria and he has to walk on this on this path
to go to Al Masjid. So his clothes could be affected by this Nigeria and the aroma the set method in
		
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			this case if it is impossible to avoid this Nigeria, then it is overlooked in the Sharia and his
salad is valid.
		
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			The other fuqaha talk about small amount of urine on the clothes may be overlooked if you don't know
where it is, you did your best to clean yourself and be clean to clean your clothes. But there are
some drops of urine that came on your clothes than your solid is valid the last pantalla will not
take you to account for this. These are fapy examples that are found in the books of FIP. So these
are here their argument those earlier who said it is halal to deal with this, you know companies
they said small amount of haram ingredients in these shares is found with most of these companies.
And it is almost impossible to avoid. That is their argument. But this argument was refuted by
		
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			saying these Hara ingredients could be avoided by not buying the shares of these companies. And
that's it, you avoid them. You don't have to deal with them. There is no necessity that was their
counter argument. The second opinion of rhodium who said it is not permissible to deal with these
companies. Do you have the document available? You don't have it? Okay.
		
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			The second group of Sharia scholars in Chile i bought those Roma who said It is haram to deal with
these companies purely because they have some haram ingredients that they had to deal with interest
the deposit their money in the bank, you have interest income so It's haram to deal with these
companies. They are the number one the permanent committee of research and fatwah in Saudi Arabia.
Sharia committee of Kuwait finance house by the time we will Kuwaiti it's a famous Islamic bank in
Kuwait, Sharia board of Dubai Islamic Bank One of the first
		
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			Islamic banks in the Muslim world the only the way it started it was established in 1975 Sharia
committee of the Sudan Islamic Bank, Dr. Ali Sal who's one of the scholars is Islamic finance
scholar, very highly qualified scholar he lives in Qatar is Egyptian but he dedicated his life to
Islamic finance and she wouldn't best is one of the scholars so in the first group you have Chef not
attaining second group you have Chef members for example, so it's a very remedy said is very strong.
		
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			disagreement. No there adalah are from the Quran and the Sunnah of Rasulullah sallallahu alayhi
wasallam Yeah, you will live in Amarillo tequila, where that Alma Bucky Amina Reba encounter meaning
oh you believe who have believed it to Allah fear Allah and leave or give up what remains of riba do
to you, if you are truly believers? This is an ayah in Surah Al Baqarah 278 Allah subhanaw taala
said Allah Allah, Allah, Allah, Allah Azza wa rahma Riba, but Allah has permitted trade and he has
forbidden Riba, usually, the Hadith, in which Rasulullah Selim said Allah were in a cooler rebel
Jaya Heliot him although he said also Allah says Verily all types all forms of interest all forms of
		
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			usury during the time practice during the time of Janelia during the pre Islamic era are rejected.
So their argument from this ayat and a hadith remove and thus, what is your move and thus, they said
these divine texts have a general implication, which means they include both small amounts and big
amounts of Riba. This is their argument and the discussion of another group of scholars, they said
the investor will not benefit from this riba he has to purify his income, when he gets an income if
they tell him you only 5% of your of your income is haram then he will give insha Allah have 5% from
his income as a sadaqa he will not get the reward of the sadaqa This is called the Hello sees just
		
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			purifying his income. So that is their argument he said through
		
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			The purification process because every index has its own purification process. And they said the
response to this argument is found in the second proof because also Allah Selim said in the second
proof here used both them and then the be Salah Salem Hadith, jabber Allah and Allah and then the
VSI Selam Lana Akela River, we're more Kyla who work at Eva who was Shahidi. So Allah says cinnamon,
this famous Hadith that is found in Buhari, said Allah subhanaw taala has cursed the one who gives
the river and the one, the one who consumes the river, the one who gives it and the scribe of the
contract, the one who writes the contract, and the two witnesses who signed the contract. So he
		
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			said, they said everyone who is involved in this kind of activities, is actually involved in this in
this non Sharia compliant, you know, operations. So Muslims are not supposed to deal with these
things at all, they have to stay away. That is their argument. The other argument is the iron Surah
Al Qaeda, which I want to tackle, well, let's I will know Allah, if we already do and help one
another righteousness and piety and do not cooperate in sin and aggression. So as you can see, in
the second group, they have their proofs from the Quran, and the Sunnah, and they are very strong
		
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			in an argument, but the other ruler, Maddy said they have a counter argument, they said the investor
is not directly involved in making those decisions. They said he's not actually just bought, bought
bought a share, which is a certificate representing a unit of ownership. He's not the decision
maker. He's not like a partner who is involved in a partnership. And he's a decision, you know, when
people when people move in and have a small partnerships, established small business, they are
decision makers, so they are directly held accountable. But these are these are these investors are
not they shouldn't be held accountable, like real owners, who are who have the power to make
		
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			decisions. They don't make decisions. Yes, they have the voting power, they can participate in the
general meetings in the general assemblies, and voiced their concern like shiftworkers man, he said,
the Muslim, when he invest in this company, he should voice his concerns. And these general meetings
and tell you know, the management that they have to avoid these kinds of activities. But this is not
practical. And it's difficult to I don't see it happening like nowadays, we're low to Allah.
		
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			Now, they're 30 proof. So I had from the Quran, the Hadith, from Salah Salem and the ayah from Surah
Ada, their third proof, they say the relationship between the management of the company and the
investors is a principal agent relationship. So the management is acting on behalf of the
shareholders.
		
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			And Mussenden in when we have a partnership, for example, when we have a partnership in Islam, every
partner is an agent who is acting on behalf of the other partners. So his transactions are
attributed to them.
		
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			They are to be held accountable for his own decisions, because he's a partner with them in the
business. Of course, it doesn't work with limited liability. That's another concept here in the
West. But we're talking about simple partnership in Islam. So it is Apple Wirkkala in every partner
is a workI listen. And he said the same applies to the management of every company, they are
actually doing making decisions and acting on behalf of the shareholders. So they are to be held
accountable, because they are part of this company. And everyone who owns shares is like a partner
with Allahu taala. And now, this is their.
		
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			The these are two opinions that are found. Now in the Muslim world. If you asked me about my
opinion, which one is stronger by looking at the proofs?
		
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			By looking at the names of the scholars, they are almost equal. There are qualified scholars in both
parties by looking at the proofs employed by different groups. The second group have stronger proofs
from the Quran from the Sunnah very difficult to avoid escape. You know this, this proves this is a
Hadith from us, Allah says, but there is something I will tell you about it. And I am not telling
you this is the right opinion.
		
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			I have there are scholars who are more qualified than me. more qualified when they discuss this
matter didn't give the opinion they said both in both groups are qualified scholars, the respected
scholars in the Muslim world and this is their disagreement, and he stopped he didn't
		
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			didn't say anything. He didn't tell people in his books in his book or in his lectures this is the
right opinion follow this opinion there are some people who not very excited about
		
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			this one or this one.
		
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			But I'll tell you something here, they if I live in Saudi Arabia or in Qatar or in a Muslim country,
I will tell Muslims Yes, you go with a second opinion you are not allowed to, to invest in the other
companies. Now the problem with us in the West and here comes the fifth comes to to the
understanding of the dean, what are we doing with our money
		
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			putting it under our bed
		
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			set putting it under our beds.
		
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			So, everyone has his own bag under your bed and you have to know the addresses and then we deal with
them right.
		
00:31:02 --> 00:31:07
			So where did where do we save our money or keep our money?
		
00:31:08 --> 00:31:18
			Yeah, they are in the bank. So everyone has a bank account, right. Okay. Now, banks, the general
principle that they use
		
00:31:20 --> 00:31:24
			something called in finance, financial intermediation.
		
00:31:25 --> 00:31:30
			financial intermediation. So they take money from depositors.
		
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			And you don't keep them there for you, Mr. Mohammed, you have your money here, safe is kept, don't
worry about it, we'll keep it for you. Don't worry about it. No, you give it to other corporations,
other businesses.
		
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			Actually, everything that is in market, all these operations that you see in the market, especially
method and foreign Forex method and operations, I told you before in 2010, the average turn over in
one day in April 2010.
		
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			The average of the daily transactions in one day was $4 trillion.
		
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			And whose money is this is your money, my money, the money of the public. So these banks and because
these banks are financing these operations, and giving this money to corporations, so they are
earning interest, so your money is used,
		
00:32:28 --> 00:32:41
			is used to finance these huge interest based operations. Whether you like it or you don't like it
right. Now, here, this criteria, is telling you this is a lesser evil.
		
00:32:43 --> 00:33:24
			You see what I'm saying here? That is a thought a personal thought, and the decision is yours. But
this is what I believe if we have an Islamic Bank, the owner, Maddy said, well established Islamic
Bank, well established Islamic bank that they owed me they said you as a Muslim, you're not allowed
to keep your money in conventional bank. That means you don't need to go through this at all. But we
don't have Islamic banks in Canada, we don't have Islamic banks in the in the West. So we're
depositing our money in the banks. And the bank is using our money to finance as I said, these
operations that were not pleased with but here there is a criteria that is trying to minimize evil.
		
00:33:25 --> 00:34:07
			You know, they said they accept only we'll look at their qualitative criteria they accept only Hara
five person to haram ingredients. And they look at the financial structure of every company. They
look at debt and they look at accounts receivables and those things, we'll talk about them and
they're the background in Sharia of these numbers. 5% Alia zero math who won and who this is a part
of the 50 Chi there any any small amount that is mixed with a large amount of Halal within water,
you have a big counter a container of water, and he has some drops of urine. So, the old MIT said,
if the color is not changed, the smell is not changed of this water. So, it is considered pure water
		
00:34:07 --> 00:34:13
			you can make will do the small amount of Nigeria does not affect. So they looked at this, you know
15 Maxim's here
		
00:34:15 --> 00:34:43
			so 5% they tolerate only 5% of business, non compliant business activities. And they look at this
financial structure of the companies to we'll talk about it now. So this is a personal thought. This
is not a fact whether they got from some scholars, as I said, I talked to other scholars about it,
and they couldn't to tell me which one is right within a Salah. So we have it Allah I talked to him
about it. He said, Yes, these two opinions are there.
		
00:34:44 --> 00:34:59
			There is nothing better than Solana safety, to be safe, not to invest. But this is a fat who are
good, as I said in the Arab countries in the Muslim countries, yes. Because you have we have
alternatives. You live in Qatar, you have Islamic banks, too.
		
00:35:00 --> 00:35:41
			You have Islamic Bank, Saudi Arabia, you live in Sudan, you have Islamic banks, even in Algeria and
other countries. So you have alternatives, right? But here we don't have altered, I'm not trying to
say, hey, you go with the first opinion, it's your decision. But I'm telling you, your money is used
to finance other operations that are you are not happy with and you don't like and it's there and
used on a daily basis. So But here, if you use your money on different, different, you know,
investment, that could be better for you, Allahu taala. Now, when it comes when it comes to this
methodology,
		
00:35:43 --> 00:35:46
			this ruler, who adopted the second methodology,
		
00:35:47 --> 00:36:34
			we came up with to two elements, something called qualitative criteria, and the other one called
quantitative criteria. So qualitative criteria, we look at which companies qualify to be included in
these indexes. The first index will allow to Allah alum is Dow Jones Islamic index, one of the
scholars who established this index is shifted up it was money, he's still alive. So, they said all
following activities are excluded from the following include included excluded from this index,
alcohol, pork related products, conventional financial services, banks, insurance companies, and all
these companies, entertainment, tobacco weapons and defense and they said only 5% or less coming
		
00:36:34 --> 00:37:15
			from the previous activities is tolerated. So, a company could have method and the main the core
business is Helen, but we might be involved in some other investments. So, they said if the Haram
investment is less than 5%, then this company will collect qualify for the second step, which is
quantitative screening or quantitative criteria. So, all the other companies that are involved in
this activities are excluded. So, they have to be oil and gas they have to be it they have to be
companies giving services or offering services different companies that are offering Hallel
		
00:37:17 --> 00:38:07
			you know, services to the public. The second quantitative criteria, these are they looked at debt,
the debt of the company, they look at the cash that has the company has plus interest bearing
securities like bonds, for example, and they looked at their account receivables. So, they said
everything has to be divided with the average during the 24 months of the market capitalization of
the company and everything has to be less than 33% What is the market capitalization or market cap
is actually the value of the market value of the company. If you look at the value of the shares on
a specific day of that company, let's say one share is $1 and the company has 20 million shares,
		
00:38:07 --> 00:38:40
			what will be the value the market value of this company to the millions, but it is different from
the total assets. Because the assets you know the properties of the company, tangible assets that
and properties they own or tools, equipments, buildings, or cash they have or anything, the total
could be only 15 million could be only 10 million these total assets. But here this rule Emma who
are dealing with or taking care of this down Jones Islamic index, we don't have it here in Canada,
but this is an example.
		
00:38:41 --> 00:38:43
			Just an example most of them are similar.
		
00:38:44 --> 00:39:34
			So we looked at the market, the US the market capitalization, some of them they divided the total
debt by the total assets Willa hotel and what is their argument? I'm not sure account receivables is
the money owed by the company to a customer for services or products provided upon credit. So when
someone's buy something with a credit, then when he sent him when he sent him the invoice so their
money this money is called accounts receivable it will go into the accounts receivables. So here
because they are counted, they are treated like cash. And the idea is that money if it belongs to
the same denomination, it has to be exchanged at par value. If I have Canadian money, I have 1000 in
		
00:39:34 --> 00:39:56
			my hand my hand I want to exchange it with Canadian money for example. Let's say we have a bill, do
we have a bill for 1000 USD? Okay, let's say for sake of clarification, we have a bill or I have a
bill of 100 and for example, I need to change it made small bills $5 $10 It has to be at par value.
		
00:39:57 --> 00:39:59
			Otherwise it is riba
		
00:40:00 --> 00:40:24
			If it is a different denomination like American money or or European money, well that's okay. That's
okay. I mean it doesn't have to be at par value, one Canadian 100 Canadian dollar, I buy with it
like 360 Saudi reals. So, here we have 360 And here I have 100 The value is different right because
they belong to different countries. So there is no river here the only thing they have to be
		
00:40:26 --> 00:40:30
			we need here immediate delivery, or immediate possession, the idea then be at hand to hand.
		
00:40:32 --> 00:41:19
			But if the money belongs to the same then denomination, it has to be at par value. Now when I have
cash, when I have accounts receivables, if they are in big amounts in a company, and I buy the
shares of this company, so the majority the major parts of this company could be representing what
representing cash for example, sending money. So when I sell this share in the market, I'll be like
selling selling money because if I didn't create a cone available in ellaby, hookman cool in the
majority should be treated or deserve to be treated like the whole of a think this is a fucking
Maxim here. So cash is the majority, the major part of the share here, so it's like I am buying and
		
00:41:19 --> 00:41:34
			selling money. So they looked at this financial structure of the companies. Now the idea of 53% Not
many people are confused about it. And actually, there is a brother so Hey, Lammott he did the
presentation on behalf of hikma capital
		
00:41:35 --> 00:41:41
			ACHEMA capital is an investment company that is established here in in Calgary in Calgary.
		
00:41:43 --> 00:41:47
			Yeah, it's a new company. So it's not the same one from this new right.
		
00:41:48 --> 00:41:51
			Hekima or what is called the one establishing Calgary,
		
00:41:52 --> 00:42:41
			hikma capital. So there is another one in Toronto with the same name, same name. Okay, it's weird.
But anyway, yeah, so so he did presentation in some masajid here in Calgary, and he mentioned this
33% 33% the background of this 30 What is 33% 1/3? So what is the background is this 1/3 Is the
hadith of Saudi Arabia will cause Sedna will cause when he was sick in the city of Mecca and he met
Rasulullah Sallam he wanted to make lasagna. So you said the Allahu Allah have only I think he was
talking about his children, he must have wives. But he was talking about his children. He said they
have only one daughter. And I need to donate make Hosea donate money before I die before I pass
		
00:42:41 --> 00:42:57
			away. So is it possible to donate three quarters? I think the first number he mentioned three
quarters of my wealth, my properties. So Allah says no, he said no. He said, How about two thirds of
my properties? As Allah says, and I said no.
		
00:42:58 --> 00:43:11
			And then the third question, he said, How about the third? So he said there are some losses and he
said the third is fine, even though it is a big amount. The third is fine, even though it is a big
amount.
		
00:43:13 --> 00:43:56
			And he said and today I want to take care of Nia Hi Ron mean untether our home for Cara Arlington is
ticker for foreignness. He said it is to leave your family members rich, sorry and wealthy. It's
better than leaving them after you pass away after you die, leaving them poor asking help from other
people. So it's better for you to leave this wealth for your family. Right but it's okay to make. If
someone is wealthy. It's recommended it is Mr. Hat for him to to make once a year. But as Admiral
Kass was asking about the right way to make the wasa Yeah, so as Allah says him did not agree with
three quarters. It did not agree with two thirds, but he agreed with the third and he said even
		
00:43:56 --> 00:44:19
			though the third is a big amount. So now here the URL under this URL, they used something called the
no sulfate formula Maharlika diversions meaning my formula Mohalla is used in a sauna. In fact, it
is a method of deducting rulings from the Sharia. What is the mushroom here? The Divergent meaning
anything that is less than third is a small amount.
		
00:44:21 --> 00:44:59
			But the chef A and the Maliki scholars who use this my former makalah was the Hanafi said we cannot
use muffin Mikhailova in the Quran, text of the Quran and the Hadith. Those Sheffy and Hannah and
medical scholars who used moving from Khalifa they said Mahalo, this text cannot be an answer to a
question. And here it is an answer to a question made by sad novio cos because the in another word,
he could have said how about one quarter 25% Rasul Allah says he could have said we don't know Allah
Allah, but he could have said yes, quarter is fine, even though quarter is a big amount
		
00:45:00 --> 00:45:49
			Not because is the statement of Rasul Allah says salam came as an answer to a question. So the
answer is related to that specific question. It doesn't necessarily mean that only thing less than
third, but they used it, they used it as, as deadly. And, and also the Hanafi or the Maliki and
Sheffy scholars who use this method, they said this diversion meaning cannot go against a text, a
divine text from the Quran and the Sunnah. And here they are using this argument or this in the area
of riba interest, and we have proofs from the Quran, sunnah, that we are not supposed to deal with.
So anyway, this is their argument about 33%. So anything that is less than 33% is a small amount,
		
00:45:49 --> 00:46:07
			and it could be accepted. That's why they accepted this amount into a you know, this financial
numbers. And most of the company's most of the companies are using this index like there is a mutual
fund Muslim mutual fund in the in the US is called the I m a n x i think
		
00:46:10 --> 00:46:15
			a man mutual fund, but this is their index, this is their symbol right
		
00:46:16 --> 00:46:20
			here. So a man a mutual fund, it's been there for a long time
		
00:46:22 --> 00:46:46
			very successful mutual fund and is using this criteria. And the scholars who are taking care of this
monitoring this, this investment company, or some of them from Canada, some some of them from the
state now in Canada, okay. So my point tonight is that if Muslims want to invest, this is the only
option they have.
		
00:46:47 --> 00:47:05
			Because you cannot just invest by yourself because you don't have knowledge about the financial
structure of the company. And you don't know their numbers how much of Haram is there even if it is
an oil company and oil company could be investing money in entertainment business could be investing
money in casinos and gambling,
		
00:47:06 --> 00:47:25
			you know, business. So the InVEST companies invest their money in different investments. So but when
you have a scholars monitoring, you know, these companies that at least they are responsible in
front of Allah subhana wa tahan. I had some names here, but they are in the document. Jani is okay,
that's fine.
		
00:47:27 --> 00:47:31
			We can talk about it on a different occasion. But I wanted to you to show some.
		
00:47:34 --> 00:47:45
			You know, the one that we have here in Canada, the 60 Sharia index plus the the hikma capital, they
are using the 500 s&p 500 from the state
		
00:47:47 --> 00:47:57
			system they told me s&p 500, s&p, 60s and Canada. Yeah, but the Hikmah capital, they're using s&p
500 from the state.
		
00:48:01 --> 00:48:15
			Yeah, but the point is all these indexes are similar. They're using the same method. And, you know,
in the opinion of both groups, you're out about this methodology.
		
00:48:17 --> 00:48:45
			Or these products that are found in the market. Now the Sharia indexes, the two opinions that I
mentioned the first group of scholars and the second group of scholars. So if when it comes to your
RRSP investing the money for your children for education or within an RSP UK that this could be an
option with Allahu Taala because the other option is using a savings account, saving account you
just purify it you take the interest and take it away give it
		
00:48:48 --> 00:49:09
			you take the Riba because the money coming from the government is halal if we're talking about
education savings account for your children. Any the money coming from the government is halal, your
money is halal. The only Haram is the person to you forever. The other option is to invest your
money, the money of your children through these vehicles will allow to Allah.
		
00:49:10 --> 00:49:13
			So if you have any question anything to be clarified,
		
00:49:15 --> 00:49:18
			Canada actually ISNA is in Toronto.
		
00:49:19 --> 00:49:22
			They have some entrepreneurship and
		
00:49:24 --> 00:49:27
			business and invest money there. So I don't know homeless.
		
00:49:30 --> 00:49:31
			Housing. Yeah. How
		
00:49:33 --> 00:49:53
			they I don't know if they have this kind of investment. I'm not sure. Some of the scholars have is
not involved with a man or mutual fund. They might have a branch in in Toronto. I'm not sure but but
they may their main product is housing. Isn't a housing cooperative. Yes.
		
00:49:55 --> 00:49:56
			You mentioned it
		
00:49:58 --> 00:50:00
			what is it for
		
00:50:00 --> 00:50:00
			If I didn't catch
		
00:50:02 --> 00:50:13
			the Hadith from the Hadith tactical thing yeah the said any cosmos and it has to be less than 33%
cash within the company
		
00:50:16 --> 00:50:25
			Yeah, but I wanted to we can scope is NO NO NO NO NO NO NO I just want to explain a few things.
That's okay, that's fine
		
00:50:26 --> 00:50:31
			yeah do you have any other question? Yes, brother
		
00:50:33 --> 00:50:35
			one hedge funds
		
00:50:36 --> 00:50:37
			to parks
		
00:50:38 --> 00:50:39
			second one
		
00:50:43 --> 00:50:44
			is Forex trading
		
00:50:53 --> 00:50:56
			Southern Maryland millennia, you her brother
		
00:50:57 --> 00:50:58
			was the first man
		
00:51:00 --> 00:51:16
			the Forex we had we had the lecture here and it is available on YouTube. Explain the way they do
Forex in a hedge fund. I don't know, I don't have enough enough knowledge about these kind of, you
know, activities.
		
00:51:17 --> 00:51:28
			Allahu Allah. Because when sha Allah who we will when we have, you know, if we do some research
about it, we'll let you know about it. But for us, it was a lecture and it's available on YouTube.
		
00:51:29 --> 00:51:29
			Yeah.
		
00:51:31 --> 00:51:38
			Your questions. One is day trading. So what is considered day trading? Islamically? Because I was
told that it's not allowed.
		
00:51:39 --> 00:51:45
			Second one was ETFs if you're allowed to invest in an ETF? Yeah.
		
00:51:46 --> 00:52:13
			Yeah, I'll just go slowly. ETFs are like mutual funds, but they are sold, they are traded in the
market, like mutual fund is an investment in company people. It's a pooled investment, you get
money, people contribute to this method, an investment pool, and then it's divided into units,
people buy these units and the manager of this company mutual funds will invest the money in
different you know, different
		
00:52:15 --> 00:52:50
			stocks, bonds, different operations. And then when we make a profit, they have a ratio of profit to
be given to their investors. So ETF is the same thing. But it mutual funds are not invested by
themselves in the they are not traded in the market. ETFs are actually like mutual funds where
they're trying to the same thing applies if their companies are Halon. Investment is halal following
for example, this criteria, then it is accepted based on the criteria of this group of scholars in
our Jamie so to tell you about pure ETF
		
00:52:51 --> 00:53:00
			eczema, we don't have enough in North America, we don't have in the West. Anything that is purely
halal and fully fully compliant.
		
00:53:01 --> 00:53:13
			Should shooting a video we're talking about some purely Halal ETF from Singapore from Singapore. Not
from here Singapore, right. Yeah. So we don't have in the West anything. That Yeah.
		
00:53:17 --> 00:53:21
			What is considered day trading Islamic do trading is a journey.
		
00:53:24 --> 00:54:07
			It's a controversial matter. Yeah. And I and I, I there are two opinions about it. There are some
real emotion is not is not permissible, those who exaggerate about speculation, and they don't like
speculate if, you know, activities. And we don't feel comfortable with speculation, the concept of
speculation at all. But it's very controversial, but the element of speculation is found in any
business activity. And, you know, to me, so it's very there is a thin line between what is halal,
what is halal in speculation, what is halal and what is haram. So this whole drama, they said, you
know, this, this call these people who are investing doing being involved in day trading, they are
		
00:54:07 --> 00:54:29
			not actually they don't mean to own these shares, and they don't add any value to the economy. And
they are just speculating about the prices of these shares. And they try to sell them on the same
day. And so they have their own arguments, but I couldn't reach any conclusion about it. I don't
want to give you a fatwa on our own fate. We're now about it allowed to Alana. Yes.
		
00:54:30 --> 00:54:31
			The first opinions,
		
00:54:33 --> 00:54:36
			arguments debate was a necessity or
		
00:54:38 --> 00:54:59
			therefore an effort but by just to continue by principle, if you buy something, you own it, you own
it, and you sell it after you own it is Harlan, whether it is an hour, whatever it is a day with,
whether it is a month, it doesn't matter. This is the main principle in Islam, that you don't sell
what you don't own. If you own it
		
00:55:00 --> 00:55:02
			then you can sell it will allow to Allah.
		
00:55:04 --> 00:55:34
			I know. I know, I know. But there is there is constructive possession. And there is real possession
perspective, some early on when they looked at the Al caboodle helped me constructive possession,
they said when it is registered in your name. So it is a type of ownership. But I didn't want to go
into that now. But this is a basic principle. And that could be one of the main reasons of their
disagreement about these kinds of activities without Allah. Yes, the first meal, you mentioned
		
00:55:36 --> 00:56:13
			that money, the Muslims, as a consensus here need to do something with it. Correct, we can find it
one of the have money. One of the other necessity or money alone, which we mentioned, to do
something with or not keep it with yourself. They said the need, yeah, it's not a necessity. They
say that the people need to invest their savings, because they don't have the ability to establish
their own business and everything. And also the state needs to encourage people to invest their
savings to support the economy. Because if people keep their savings, they don't invest them, then
the economy will
		
00:56:14 --> 00:56:23
			will not will be weak he and he will lead the country will not have a strong economy because money
is not is not used in the business.
		
00:56:24 --> 00:56:26
			My question this question is
		
00:56:28 --> 00:56:30
			recommended. So it's not recommended to
		
00:56:32 --> 00:57:07
			save money in the sense that, okay, you need to fulfill. And this is not your saving for a
particular reason. You don't see, what I mentioned is here, we are saving more money in the banks.
And banks is using our money to finance interest based operations, right. And things that were not
pleased with, but your money is used, your money is used. So I'm saying maybe it could be better for
you as a Muslim to use your money in these kinds of activities. Maybe it's better is the is the
lesser of two evils.
		
00:57:09 --> 00:57:10
			Now,
		
00:57:11 --> 00:57:23
			slamming back we don't have an Islamic ban. We're talking about Canada and the worst. No, my point
is not that my point is that okay, assume that keeping the bank is totally safe because the
investment is permissible. Yeah, it is. What the *
		
00:57:25 --> 00:57:31
			is it? Terms of recommendation I'm saying is recommended as a Muslim if you have extra money, okay.
		
00:57:34 --> 00:58:14
			The Allahu Anhu had a recommendation for Muslims or for the properties of the orphans. He said the
Steph middle fee and worry Laietana letter Kudo has a cat. He said invest the money of the orphans.
Because the orphans have to pay the cat. They have to pay as a Catholic even if they are not
Micallef. Even if they are young. They have to pay because it is a hacker right on the money on the
property not had happened. They are not Micallef because he could be 10 years old. And he's a
billionaire. His dad passed away and he left for him billions of dollars. So we tell him like you
don't have to pay zakat until you become an adult you reach the age of puberty. You know, all the
		
00:58:14 --> 00:58:21
			scholars This is an agreement that he has to pay Zakat is insane, is he's not
		
00:58:22 --> 00:58:36
			supposed to pray, he cannot pray it doesn't fast. Allah subhanaw taala will not take into account
because insane, he's most known crazy. But if he's rich, wealthy, then his guardian has to pay zakat
on his money. Right. So
		
00:58:37 --> 00:59:01
			they allow us to encourage people to invest the properties of the orphans. He said otherwise the cat
will eat it away will allow to Allah so the general concept would be encouraged to keep the general
concept is good to to invest your money to save money for your family. And so Allah says seldom used
to save for the for the whole year, save money or food for the whole year for one year.
		
00:59:02 --> 00:59:12
			More than that, if you have more than that, then it's better to invest is better to invest money to
make more money it is Islam encourages people to invest their money.
		
00:59:16 --> 00:59:27
			Question on the resource companies like oil and gas companies, and their activity itself is Hello, I
guess my main activity but most of the oil and gas is sold through futures.
		
00:59:29 --> 00:59:40
			So here comes the job of the scholars to monitor these companies and monitor their activities.
That's why they don't look only at the product. They look at the financial structures,
		
00:59:41 --> 00:59:53
			different ratios and they say math and they look at the balance sheet of the company. And the they
know how to read these numbers and and come up with a conclusion about company if it is included
should be included in this indexes or not.
		
00:59:54 --> 00:59:59
			And here are the differences. There is a big difference between someone who is going to the market
by himself
		
01:00:00 --> 01:00:26
			As an individual, a Muslim investor, say I'll deal with my broker or just buy oil and gas. But you
don't know what kind of involvement business they are involved in? Or what are the their? What is
their situation, their financial situation? What are their financial conditions, you don't know
them. So these scholars are monitoring this, these indexes on a regular basis. And then Yanni it's
better than
		
01:00:28 --> 01:01:08
			then other other things. So Allah, Allah and I'm in the market, that's why I did my footwork, if I
have to give a fatwa tonight, by yourself, you go and invest in the in the in the market, you cannot
do it. Because you don't know you don't know you don't have knowledge about these companies. You
cannot do a research by yourself and and look for these numbers by yourself. And because this is the
only criteria that is available in the Muslim world, either It's haram, or it's halal through this
methodology. This is what we have, we're not talking about the Arab countries or Muslim countries,
they have their Islamic banks, they have Islamic financial investment companies. I'm talking about
		
01:01:08 --> 01:01:17
			people Muslims living in the West, in Canada and North America and Europe. And that's it, you get my
point, right?
		
01:01:18 --> 01:01:20
			Do you raise your hand for
		
01:01:21 --> 01:01:21
			I'm sorry.
		
01:01:23 --> 01:01:39
			We have two websites. So on say alpha SAE Alpha comm they can go on that page, we have designed a
program which values about 2000 companies on tscm, new New York Stock Exchange and NASDAQ
		
01:01:42 --> 01:01:43
			combined.
		
01:01:45 --> 01:01:49
			Okay, and capsule.com. And it's a local company.
		
01:01:52 --> 01:02:18
			But others who hate we'll be here, we'll be here who move here this month or early next month. Okay,
I'll be available to discuss this. Okay. There is one thing I would like to tell you. There are some
banks that came up with this Islamic investments, they established the Islamic investment
department, or conventional banks, one of them was in Canada.
		
01:02:19 --> 01:02:23
			And he mentioned the scholars mentioned the scholars who
		
01:02:24 --> 01:02:44
			you know who approved these criteria. The problem is a problem is sometimes they give the impression
that these collars are monitoring this investment, you only the scholars approved the index, the
criteria, the methodology, we cannot give the impression to the public that these collars are on a
regular basis,
		
01:02:45 --> 01:02:55
			monitoring the decisions and the operations of this investment department in the bank. They have
nothing to do with it, you know, to me, but they approve this methodology.
		
01:02:56 --> 01:03:39
			So if you strictly follow this methodology, then you will be in the safe side following their
methodology. If you use it as just there, put it on the website, but you don't follow the criteria,
you make your own decisions, then you are not really following there. So you have to be careful
about it. It's a matter of advertising. The other thing is that I don't like in the market now, in
this industry, Islamic finance industry. Some people like to always use fully compliant, fully
compliant with Sharia strictly compliant. So they shouldn't say this, where I mean it's better for
them, people will respect them Inshallah, we'll deal with them, if they are honest. And they say
		
01:03:39 --> 01:04:05
			this criteria or this investment was approved by this scholars group of scholars or Sharia bots, so
people will know. And the decision believed the decision to the customers and the investors. I think
it's better than telling people No, these are strictly Sharia, you know, compliant products fully
implied, we don't have something fully compliant in the West. So
		
01:04:06 --> 01:04:09
			that money in the bank does not take interest.
		
01:04:11 --> 01:04:12
			Your money is used
		
01:04:14 --> 01:04:21
			their money, combined money, they are using a earning interest the bank is earning interest on your
money.
		
01:04:22 --> 01:04:24
			But other than that what people can do.
		
01:04:27 --> 01:04:30
			Here we have limited limited options.
		
01:04:32 --> 01:04:48
			I tell you something, I don't want we I don't want you to blame Islam for this hardship that we face
in the West. Why? I'll tell you something. Why? The reason is because this financial system was not
built based on our values.
		
01:04:49 --> 01:04:51
			We live in a different culture.
		
01:04:54 --> 01:04:59
			It's impossible. It's a different culture is a different financial system.
		
01:05:00 --> 01:05:29
			They don't care about Reba. Reba is pay is part of their daily operations is riba interest is
included in everything. And this is their financial system. Now to come and say, Whoa, everything is
haram. So Islam is a very difficult to religion. You started blaming Islam, no, don't blame Islam,
Islam gave you the alternatives, alternatives. These are not found in the system. Because this
system is not Islamic.
		
01:05:30 --> 01:05:53
			But our fathers, our forefathers have established their own Islamic system. And it worked for
centuries. It worked for centuries, when before Europeans established their banks, we had a system
in the Muslim world, and Muslim trader will sign a check, I will tell you a check in the city of
Basra in Iraq, and it will be cashed in Morocco.
		
01:05:54 --> 01:05:59
			In the Middle Ages, we call them Middle Ages in Europe.
		
01:06:01 --> 01:06:18
			That was admitted by Western scholars. They said they had a very sophisticated system in the Middle
Ages, Muslims. But this is history. This is history. We don't want to live on the glories and the
achievements of our
		
01:06:19 --> 01:06:40
			our forefathers, we have to look at our conditions. Now the challenges that we are facing, and the
problems that are facing, even with Islamic finance, the people who are taking care of this industry
are trying to make it easy to people. But sometimes, whenever we see, you know, whenever we see
something that is not fully
		
01:06:41 --> 01:06:47
			compliant, usually people most of the people think right away about lack of honesty,
		
01:06:48 --> 01:07:11
			and lack of lack of integrity, and that Muslims themselves are not willing to provide fully Sharia
compliant products. Is this not the case, sometimes the face many challenges their competition in
the market. The regulations, regulators are not Muslims. Every country has a financial,
		
01:07:12 --> 01:07:51
			you know, regulation, body, regulatory body body that regulates all financial activities, including
Islamic investment companies. And sometimes they don't accept some of their terms. They come up with
a plan, they tell them, This is how we're going to do business. The regulator will tell them no, you
cannot do this in Canada, you cannot do this in the UK. So they have their own challenges and
problems too. So I want you to think about all these things. We don't we don't want to jump into
conclusions. When you see something that is not pure that is not complete. We always think about
lack of honesty and, you know, within our circles, this is not the case all the time. Well, lo to
		
01:07:51 --> 01:08:02
			Anna, yes. One question. So in conventional finance, interest and inflation are quite interrelated.
Right? So what is the Islamic concept on inflation?
		
01:08:04 --> 01:08:30
			What do you mean Islamic concept? How does Islam define inflation? Because creation of money you
mean inflation of money and things becoming more expensive with time, right. So $20 per day is not
worth and yet, there are issues that we will discuss regarding this, this problem. When it comes to
paying debts, for example, or paying mod or paying back the money the value of money is different.
And the owner
		
01:08:32 --> 01:08:37
			of the Islamic faith Academy is both Islamic physically we have two Islamic academies.
		
01:08:39 --> 01:08:41
			These are the most actually
		
01:08:42 --> 01:09:16
			they are the best in the in the Muslim world. One of them belongs to ies, or IC Organization of
Islamic countries. headquarter is headquartered in Jeddah, the other one it belongs to the Muslim
worldly, Robert Lanham, Islam and their headquarter is in Makkah. So the group big group of
scholars, they come together every three months every four months, and they get together and the
invited specialist people who are specialized in different fields, sometimes the discussed medical
issues, financial issues, different issues.
		
01:09:17 --> 01:09:40
			We collected the questions and problems that they have one of the questions is this the discussed
method, when it comes to paying debts? They said no, you have to pay the same amount, unless there
is there are some exceptions. If at times of calamities or if the economy the whole financial system
collapses and the value of money is like him or her has decreased
		
01:09:42 --> 01:09:59
			it's totally different to the method of $1 used to be equivalent to within let's say, three, three
Riyadh, Saudi riyals and huge financial crisis took place, and then the value of money became
totally different. $1 is equal
		
01:10:00 --> 01:10:37
			To 40 reels or 50 reels with method and Saudia money here has no value when compared with American
money, if there was a problem, like financial crisis, or an earthquake or a big disaster here, he
said they said the debtor might might make a claim in a court of law and ask for the equivalent of
his, the amount of his debt in this case, so there are no isolated cases where the person might ask
for the equivalent amount of money otherwise they said inflation should not
		
01:10:38 --> 01:11:23
			affect the payment of loans and the payment of debts and everything should be the same with the same
value with the fiat currency that that doesn't happen. Because I know gold or silver dinar Yeah,
that makes sense. But it has to do it has to do with the nature of money in Islam. In Islam, we
accepted anything that was accepted by the public or accepted in the state. If it is accepted by the
state by the government or the public as a tool as a money, then it it should be accepted. They
looked at the Sunnah of Rasulullah Sallam he used to you deal with golden dinars minted in in the
Roman Empire and silver Durham's minted in the Persian Empire, and Rasul Allah, as I said them did
		
01:11:23 --> 01:11:37
			not say, these are Roman dinars and Persian Durham's, we should change them. We should have our own
sunnah money, or Islamic money hidden say that. And the whole of Russia doing did not make this
decision.
		
01:11:39 --> 01:11:43
			Does it? Does it click anything in your mind? Is this?
		
01:11:45 --> 01:11:48
			People who are thinking about using gold and silver again,
		
01:11:50 --> 01:11:51
			it didn't you're not following the news. Okay.
		
01:11:52 --> 01:12:24
			So can I just comment on that for a second. I mean, one of the biggest problems that people have is
that when they deal with loans, they don't understand the nature of Islamic contracts. In Islam, we
have contracts for profit, and we have contracts which are done out of kindness. And the loan is a
contract that is done out of kindness. So it's understood that you're making some sacrifice already
by giving a loan. And if there are further sacrifices made due to inflation, then you know, that's
part of the contract that you understand that your budget is with Allah subhanaw taala, even if
someone is lost it circle ownership. But this concept does not apply only to loans method and credit
		
01:12:24 --> 01:12:34
			sales. It's not a loan. But there is a credit so he has to pay within a within five years or six
years. So the value of money could be different. Mark, for example, is not a loan.
		
01:12:35 --> 01:12:43
			It's a hack. It's a right, that has to be paid by the husband to his wife. So it applies to all
these kinds of arrangement
		
01:12:46 --> 01:13:00
			might not be enough for ya. But she said what he said is true. Yanni alone is the act of Sn
swayamsevak Hasson card has any don't charge Riba and Islam does not exist these days anyway.
Anyway, but
		
01:13:01 --> 01:13:22
			so my point is, you know, when it comes to inflation, yes, there is a problem with fiat money. But
when you look at the concept of money in Islam, we we don't have problem dealing with this kind of
money. You know what I mean? Even though we know there is a problem, there are people who said no,
so now is to use golden silver.
		
01:13:23 --> 01:14:04
			No, it is sooner we have to go to this minute but this look at what Allah says Islam did not say
this. He didn't make this statement. He never thought about changing money. Because if he changed
it, it will be very difficult for us to be difficult. Imagine if Rasulullah sysm said we have to
have our own Islamic dinar and Islamic money. What will happen nowadays, what will happen? People
will not be able to use this money this paper money so no, we can't. Because Allah says him said we
have to use our Omen Subhan Allah, this is a Rama of Islam. So Allah says Allah knew that people
will be different dealing with different types of money. Even our Hatha they were thought about
		
01:14:04 --> 01:14:06
			making money out of the skin of camels.
		
01:14:07 --> 01:14:09
			For kala kala who isn't,
		
01:14:11 --> 01:14:14
			you know, all camels will perish. And then he changed his mind.
		
01:14:16 --> 01:14:45
			Why did he did he because he didn't look at the nature of money itself by itself. You know, he
looked at it as a tool, if people accept it to be a tool and money made of skin of camels then let
it be anyway. But I know the problem is there is with the financial system, you know, with central
banks and with interest is very complicated. Sometimes when you try to read about it. You get some
headache. Tyler knows.
		
01:14:47 --> 01:14:53
			There's not It's not easy. There is not easy but but we have to study these things and understand
them. Yes.
		
01:14:56 --> 01:14:59
			Sharia industries that you are talking about, there are
		
01:15:00 --> 01:15:22
			Many of them Dow Jones, Sharia index SMP one of them in Canada s&p TSX 60 Sharia in Canada in the
state s&p 500 in the UK footsie in Malaysia MSCI different there are many HS go to Google progeria
indexes, Islamic indexes, you will find many.
		
01:15:25 --> 01:15:36
			Pardon my customers procedure on how can we go investing or buying these industries? I think you
need to go through a broker, you cannot do it by yourself or through investment companies.
		
01:15:39 --> 01:15:42
			How about the 60? Sharia? That's losing money?
		
01:15:46 --> 01:15:49
			I don't know. I mean, if you deal with your broker
		
01:15:54 --> 01:16:22
			and what I know, Allah who I am, to the best of my knowledge, it could be good news, if it happened
in the future. There are some companies in the Gulf area, they're trying to provide platform
universal Pro or international platforms for international investors to invest even in Islamic banks
and companies found in Qatar, Dubai, in many countries. One Bank is already doing boubyan Bobby and
from koi trade that and then also I will be standing bank literally at the beginning of this year.
		
01:16:23 --> 01:16:52
			Yeah. So there could be some progress in the future, you could be trading with your machine, if you
want have an iPhone? Well, as you can see, through different platforms that are found, the problem
is with the fees, the fees, if you're doing dealing with local companies, the fees are very small.
If you buy shares of international companies from Singapore, Malaysia, maybe other countries in the
in the airport, the fees could be very expensive, I think Milan, right.
		
01:16:54 --> 01:16:55
			They have to list
		
01:16:57 --> 01:16:58
			products
		
01:17:02 --> 01:17:04
			because all of the companies
		
01:17:06 --> 01:17:08
			or companies listed on New York, and
		
01:17:09 --> 01:17:11
			so if we can replace companies here.
		
01:17:16 --> 01:17:18
			Somebody could contact them at the very
		
01:17:21 --> 01:17:30
			moment. These banks don't deal with individuals, we deal with companies. And they that's it, you
don't have questions. One more.
		
01:17:32 --> 01:17:39
			And I hope I understood this correctly. But you said that right now, just as retail investors, we
can't go out and do our own trades.
		
01:17:41 --> 01:18:05
			And I understand that, right? Yes. So is it possible that we can, in a sense, cherry pick from these
indices, these indexes, and then buy those countries the winning come? What I understood is that you
don't have as individual you cannot have access to them, you have to go through financial investment
company or a broker is what they understand.
		
01:18:07 --> 01:18:17
			I was told I'm not sure about this information. So I guess my question would be say, you say you
find company XYZ in this amount of indexes.
		
01:18:18 --> 01:18:21
			And you as a retail investor quantify that company?
		
01:18:22 --> 01:19:08
			Is that Is that okay? Or is that still? Is that playing around? If you know that it is a index is an
imaginary portfolio. Yeah. And it's not a company by itself. It's just a list of companies that you
can consider in in your investment. But but i my i don't know why I could be wrong about it. I was
told that as an individual you don't have access to this index. You need to go through a broker or
an investment company who allow to Atlanta because even if you look for the list of these companies,
the index method 60 Sharia Marysia one if you looked for the you look for the list, the updated
list, you don't find it I think online, what Allah Allah, you don't find it online. So you have to
		
01:19:08 --> 01:19:09
			go through
		
01:19:10 --> 01:19:11
			what says,
		
01:19:12 --> 01:19:19
			a broker or investment company will this what I know Allahu Taala teach me if I'm wrong.
		
01:19:20 --> 01:19:20
			Yes.
		
01:19:23 --> 01:19:23
			Now
		
01:19:25 --> 01:19:45
			RRSP that's a different discussion. But I said it could be your funds in the RSP could be invested
through these vehicles. Instead of allowing the company to invest in on your behalf and thinks that
you are not aware you don't know the nature of this investment. So you can go through these options
belong to Alan Yes.
		
01:19:46 --> 01:19:53
			Yeah, who are either Yeah, keep quiet please because we need to continue with just two questions,
three questions and then we'll allow you to go shall
		
01:19:55 --> 01:19:57
			consider checking you
		
01:19:58 --> 01:19:59
			know, checking account what
		
01:20:00 --> 01:20:01
			Do you mean checking out
		
01:20:04 --> 01:20:07
			all your money that is deposited in the bank is used by the bank
		
01:20:10 --> 01:20:11
			now
		
01:20:13 --> 01:20:15
			we don't have Yeah, we don't have an Islamic bank.
		
01:20:16 --> 01:20:41
			So, if you invest your money in a different investment, you don't keep them in the bank it could be
better whether it is a Hallel investment you open a store or you or you buy a property real estate
or or you go through this you know, use this criteria look for these companies and invest your money
with them it could be better than keeping your money in the bank will allow Tada.
		
01:20:56 --> 01:20:59
			A credit cards Brother is asking a different question.
		
01:21:00 --> 01:21:00
			While
		
01:21:03 --> 01:21:06
			this is the last question shall credit cards
		
01:21:07 --> 01:21:35
			there are some rules, who said people living in the West because they are used, you know, people use
them on a daily basis. And some of the people who live in the state who live in the west they cannot
carry cash and they looked at these conditions of life. And they said we could be handled with this
condition that you pay within that period of time. You don't pay interest. But this photo to my
understanding or to the best of my understanding
		
01:21:37 --> 01:21:40
			is not valid anymore. Because Mithuna and if you look at
		
01:21:41 --> 01:22:28
			BMO Bank of Montreal, they have a prepaid travel MasterCard, and it is prepaid it has no interest in
it. So it has all the features of credit card you can use it it's like a debit right but it is
credit card. You have to put money before you use it. Okay, so you don't benefit from any loans.
They are not giving you loans and that's why you don't pay interest, it's your money. But if you go
to the hotel, they accept it as you rent a car they accept it as a credit card. So this is an
alternative. A good alternative because BMO is a well established company. It's not like the other
companies who have prepaid credit cards there are some small companies or some stores they have you
		
01:22:28 --> 01:22:31
			know their they have their own prepaid cricket
		
01:22:32 --> 01:22:36
			but BMO is a well established company and this card is held to us
		
01:22:38 --> 01:22:41
			so this is an alternative you don't need to use credit card
		
01:22:42 --> 01:22:47
			now he told me I don't have money and don't have cash to pay for my expenses that's a different
story.
		
01:22:49 --> 01:23:34
			Then you should look for other alternatives Hello loans from friends or family members if you can't,
then you can use a credit card to pay for your expenses but with one condition there you you have a
little bit Allah VM Nick, you have to make sure that you will be able to pay insha Allah the bill
before the end of the period. This is in case you don't have resources financial you know means you
don't have the financial means you don't have enough income you have a family to spend on so you can
go for this option as a last resort, a last resort otherwise the HELOC credit cards are available.
These are prepaid credit cards without Alan has a debit card now which is approved by Visa Yeah, but
		
01:23:34 --> 01:23:42
			they don't accept it in some hotels and they don't. They still look at it. Look at it as a debit
card. Yeah, she's like, Nah,
		
01:23:44 --> 01:23:50
			you can use it everywhere. Jazak Allah Subhana Allah Hunnic Shittu Allah Allah Allah the sufferer,
we're going to believe it.