Can We Invest in Stocks in Islam – Ask Shaykh YQ #130

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Yasir Qadhi

Channel: Yasir Qadhi

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This person is asking if investing in s&p 500 stocks is allowed in Islam

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107 me Baba Nika in Region No, he him first Earl blue.

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June let

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the question cannot be answered that simplistically, they should he doesn't care whether it's s&p 500 or not, that's irrelevant. There are other factors that make a stock Highlander heroine. So the question should be that can one invest in stocks? And the response is that, yes, if certain conditions are met, and what those conditions are, varies from committee to committee, but there are two or three broad conditions are pretty much are unanimously agreed upon, first and foremost that the product itself overall be highlighted. So obviously, you cannot invest in Budweiser. You cannot invest in an unethical or illegal by or by an unethical I mean, like an arms company that's going to

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be bombing people, you don't want to as a Muslim, how can you invest in a company whose primary product is going to kill millions of people? I mean, you can't do that. So the product has to be halaal. Okay, of them as well, is that the, the the notion of interest and interest loans need to be taken into account, how much is the liquid assets available? And how much is loaned from the company as well? And that's something that again, there's different ratios, some say 30%, or what not. So as long as and there's actually something called the Islamic Dow Jones index, if you can look that up the Islamic Dow Jones index. Also there are corporations and companies that do the homework for you,

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right? So there's wired investment and amount of mutual funds and whatnot, and they've done a little bit of homework and they have a portfolio of stocks that are that are permissible, so you are allowed to invest in stocks that are overall halaal. What those stocks are, the easiest thing to do is to go through a third party and then you know, ask them are these stocks meeting the standards or not. And the primary standard body is called the eo fe ni, fi. It is a International Association of Islamic finance. It is like the premier or the gold standard of Islamic finance. And they have lots of people that have done their certificate program across the globe. And their conditions are the

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ones that are considered to be the most reasonable and the most global, and that these are the ones that are followed by these mutual funds. So bottom line, yes, if the conditions are met, and generally speaking, the ones that we're familiar with the larger companies that their products are held on and their overall doing that which has had that generally speaking, it is permissible to invest in those companies and Allah knows best