Frequently Asked Questions

What is an investment?

Investment is the act of acquiring an asset in exchange of your available resources. This includes your money and time. There are two types of investments:

What is a halal investment?

Halal investment, or shari'ah compliant investment is an investment which does not violate Islamic law. More specifically, those investments that do not involve the following:

Shari'ah Compliance Methodology

Since the capital markets (made up of stocks) are, for the most part, the only viable avenue of investment for the masses as it requires a minimal ticket size, and has a regulatory framework to prevent counter-party risk. Shari'ah scholars have allowed for some degree of tolerance of certain non-halal elements up to a certain restrictive limit to allow for Muslims to participate in the capital market while not blatantly violating the religion. Even after such an investment is made, the faithful investor is required to give a percentage (purging) of his profits to charity to further cleanse his earnings.

Should all restaurants and cafes serving non-vegetarian food products be considered questionable in their shari'ah compliance ?

If a restaurant chain is serving pork and / or alcohol, then they should be clearly considered non-compliant. For a chain serving chicken, mutton, beef, etc. with a halal certification, they can be considered shari'ah compliant. If the halal certification is not found, or can not be verified then the restaurant chain will be considered non-compliant. Stocks of Hotels are often screened out for the same reason as above. Serving alcohol and pork is a part of their regular offerings.