Is Zakat Due on a Government Pension Fund That Cannot Be Accessed Until Retirement? QuestionAssalamu alaikum shaikh, I work for the government. A portion is deducted from my monthly salary and contributed to my pension fund, and my employer contributes an equal amount. The total is invested and grows over time. There are three components: … Read more
What Is the Sharia Ruling on Investing in Real Estate Investment Trusts (REITs)? QuestionAssalam alaykum Sheikh. Please we need a fatwa stand on the following business related question. Real estate investment trusts (REITs) are companies that own, operate, or finance income producing real estate across a wide range of property sectors. They raise capital by … Read more
Is General Forex Trading Haram, and Does Trading Gold, Silver, or Platinum Change the Ruling? QuestionSalam alaykum. Is general forex trading haram? What if it is used only for buying earth minerals like gold, silver, and platinum? Would it be permissible in this case? Jazakum Allah khair. AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi … Read more
What Is the Sharia Ruling on Money Earned from Bank Interest (Riba al-Bunuk)? QuestionSalamu alaykum, I hope you are well.I would like to ask about money kept in the bank when a person receives extra money from the bank, known as riba al-bunuk (bank interest). What is the Sharia ruling in this case? Is the … Read more
Is It Permissible to Keep, Use, or Donate Profits from a Shariah-Screened Investment ETF? QuestionSalaam alaikum warahmatullah wabarakaatu. I invested some money into an investment that claims to be halal and that it “complies with Shariah law and excludes companies deriving more than 5% of their income from alcohol, tobacco, pork-related products, weapons, conventional banking … Read more
Is a Contractor Required to Credit the Fair Market Value of a Deleted Item, or Only What He Actually Budgeted? QuestionSalam. A person submits a quote for a construction project based on a set of drawings. The drawings include item X. Later the client decides to cancel item X from the scope. He asks for … Read more
Is It Permissible to Purchase Company Shares When the Company Provides Supply-Chain Analytics? QuestionAs Salam U Alaikum,i wanna ask you about the permissibility of buying stock/equity that my company is offering me. Below is a simple explanation of what my company does. Everstream Analytics provides supply-chain risk forecasting for companies (weather risk, shipping delays, political … Read more
What Is the Ruling on Interest Earned from Everyday Savings Accounts in Banks Like TD? QuestionWhat is the ruling on interest from Everyday Savings Accounts with banks such as TD?I recently opened a savings account to keep my money organized, but I do not want to deposit anything until I know the ruling. The bank … Read more
Is Lead Generation for Mortgage Agents Permissible, and What Should Be Done With Past Income? QuestionIn the Name of Allah, the Most Gracious, the Most Merciful.Peace, mercy, and blessings of Allah be upon you. My name is Abdul Samad. I live in Pakistan but run an online lead-generation and marketing business in Canada. My work … Read more
Is a Builder Allowed to Take on a Construction Project When the Client Is Financing It Through an Interest-Based Bank Loan? QuestionA brother in construction is asking: if he knows or is almost certain that his client is obtaining an interest-based loan from a conventional bank to finance the construction, is it permissible for him … Read more
Is a TFSA (Tax-Free Savings Account) Permissible in Islam? QuestionIs a TFSA account haram? I read that it helps you avoid paying taxes on your savings, but since the bank invests that money and adds interest to it, is it still permissible to use? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajma‘in. … Read more
Is It Permissible to Take a Conventional Mortgage in Cases of Severe Hardship? Questionبسم الله الرحمن الرحيمAs-salamu alaykum wa rahmatullahi wa barakatuh, I have always tried to avoid interest and refused to apply for a conventional mortgage, as riba is prohibited in Islam. I applied for an Islamic mortgage, but I was only approved for … Read more
QuestionIs Servus Halal, which has started launching in Alberta, a Murabaha or Musharakah product? What are the terms? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain. What Servus Halal Is Key Terms of Servus Halal Mortgage Product Compliance with AAOIFI Standards Servus Halal has been structured in compliance with the standards of … Read more
QuestionWhat is the ruling on investing in stocks? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain. The General Principle The usul principle is: “Al-asl fi al-mu‘amalat al-ibahah” the default ruling in financial transactions is permissibility, unless there is clear evidence of prohibition. Therefore, investing in stocks is permissible in principle, provided the … Read more
QuestionSalam, I would like to know if working as a salesman at a car dealership is haram? Please let me know. Jazakallahu khayran. AnswerAlhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in. The ruling depends on the type of sales and financing that the dealership uses. Islamic jurisprudence distinguishes between permissible trade and … Read more
QuestionCan interest earned be used to pay off debt? AnswerAlhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in. Earning interest (riba) is haram, and a Muslim should avoid placing his wealth where it accrues interest whenever possible. The Prophet ﷺ cursed the one who consumes riba, the one who pays it, the one … Read more
The rulings of day trading, short selling, options and gold trading. Praise be to Allah. 1. Day Trading (Cash Equities) 2. Day Trading with Margin 3. Short Selling 4. Options 5. Gold Trading Forms in the West: And Allah knows best.
Bismillah Ar -Rahman Ar-Raheem, Question:Can crowdfunding for a halal startup or business idea be considered acceptable under Islamic investment rules? Answer:Crowdfunding refers to raising small amounts of capital from a large number of people, typically via an online platform, to fund a project, startup, or business. The concept itself is not inherently prohibited in Islam … Read more
The Prophet ﷺ said regarding partnerships: “The hand of Allah is with the two partners as long as they do not betray each other.”(Narrated by Abu Dawud, 3383; classed as hasan) Musharakah: Islamic Partnership Contracts and Their Modern Applications Definition:Mushārakah (مشـاركة) is an Islamic partnership contract in which two or more parties contribute capital to … Read more
Question:Is reverse mortgage (home equity release) permitted for Muslim homeowners to fund retirement needs? Answer: 1. Understanding Reverse Mortgage (Home Equity Release) A reverse mortgage allows elderly homeowners to borrow money against the equity in their home. Repayment usually occurs upon the homeowner’s death, sale of the property, or permanent relocation. The loan typically accumulates … Read more
Question:Can Muslims invest in ESG funds if they include companies with minor interest-based income? Answer: 1. Definition and Nature of ESG Funds What are ESG Funds? ESG funds are investment funds prioritizing companies that meet specific criteria related to: However, these ESG funds may include companies that, although primarily ethical in business practices, generate a … Read more
1. Understanding Digital Assets in Islamic Terms Before calculating Zakah, it’s essential to classify digital assets according to traditional Islamic jurisprudential categories. Contemporary scholars generally categorize digital assets as follows: Zakah calculation differs based on these categories. 2. Conditions for Zakh Obligation Zakah is obligatory when these general conditions are met: 3. Calculating Zakah by … Read more
Question: Can a Muslim invest in conventional stock markets or ETFs? Answer: بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيمِ، الْـحَمْدُ لِلَّهِ رَبِّ الْعَالَمِينَ، وَالصَّلَاةُ وَالسَّلَامُ عَلَى أَشْرَفِ الْأَنْبِيَاءِ وَالْمُرْسَلِينَ، نَبِيِّنَا مُحَمَّدٍ، وَعَلَى آلِهِ وَصَحْبِهِ أَجْمَعِينَ، وَمَنْ تَبِعَهُمْ بِإِحْسَانٍ إِلَى يَوْمِ الدِّينِ. Investment and business ownership are generally permissible in Islam, provided they are free from prohibited elements such … Read more
Question: What is the ruling on cryptocurrencies in Islamic finance? Answer: بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيمِ، الْـحَمْدُ لِلَّهِ رَبِّ الْعَالَمِينَ، وَالصَّلَاةُ وَالسَّلَامُ عَلَى أَشْرَفِ الْأَنْبِيَاءِ وَالْمُرْسَلِينَ، نَبِيِّنَا مُحَمَّدٍ، وَعَلَى آلِهِ وَصَحْبِهِ أَجْمَعِينَ، وَمَنْ تَبِعَهُمْ بِإِحْسَانٍ إِلَى يَوْمِ الدِّينِ. Cryptocurrencies are a modern financial phenomenon not explicitly addressed in classical fiqh texts. However, their permissibility is assessed … Read more