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 using buy-now-pay-later (BNPL) services Islamically permissible if paid off within the grace period? Answer: 1. What are BNPL (Buy-Now-Pay-Later) Services? BNPL services allow customers to purchase goods immediately while delaying full payment. Typically, they offer: 2. Scholarly Consensus (Ijma‘) and Established Opinions Contemporary Islamic jurisprudential bodies, including AAOIFI and the International Islamic Fiqh Academy, … 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:Is it halal to lease a car if the owner is not financing it? Since I’m not owning the vehicle and I don’t plan to buy it at the end, can I consider it as renting a car? Is it permissible to have full insurance coverage for the leased car? And who is supposed to … 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:If someone lends money in Lebanese lira, and at the time of the loan it was worth a certain amount in US dollars, but the currency later collapses — can the lender request repayment in Lebanese lira equal to the original dollar value? Answer:Bismillahir Rahmanir Rahim In cases of economic collapse or severe devaluation, Islamic … Read more
Question: Are cashback and rewards from credit cards considered ribā (interest)? 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. Conventional credit card agreements usually include a clause allowing the issuer to charge interest (ribā) on late … 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
QuestionDoes in-house financing for vehicles always comply with Shariah? Or are there any specific requirements we should follow? Answer: Praise be to Allah. Firstly: The principle of financing in Islam Financing in Islam must comply with the principles of Shariah, which forbid riba (interest) and emphasize valid contracts, clear terms, and ownership of goods before … Read more
QuestionCan I contribute to the Employee Investment Program that the company I work for offers?Salamu Alaikum. My company offers a program where I can invest money into the company and receive a guaranteed return of at least 10%, with the possibility of earning more depending on the company’s performance. Earnings are calculated monthly based on … Read more
Question: Can you explain what Halal financing through a Murabaha agreement is, and how it differs from conventional financing? Answer : Murabaha is one of the most straightforward contracts in the Islamic finance industry. Simply put, it is a cost-plus-profit sale. But it must meet several key conditions (cornerstones): 1. Ownership:The financial institution (in this … Read more
Question: Is it allowed to work for MasterCard or Visa? Answer:It depends on the nature of the work. MasterCard and Visa primarily operate in the financial sector, offering services that are largely based on interest-bearing (riba) contracts, which are not considered halal in Islamic finance. Therefore, it is not permissible to be directly involved in … Read more
Question: Do I have to pay zakat on my watch collection? Answer: It depends on your intention behind owning the watches. If you bought the watches as an investment, with the intention of selling them later to make a profit, then zakat is due on their current market value. In this case, they are considered … Read more
Do Women Pay Zakat on Their Personal Gold Jewelry? How to Understand the Hadiths and the Different Opinions 1. The Hadith About the Gold Bangles This is one of the key hadiths used as evidence by the Hanafi school: A woman came to the Prophet ﷺ with her daughter wearing two thick gold bangles.He asked, … Read more
Question: How to live in western society without a credit card? Ex- rent, travel, credit score, etc. And how to discuss with family that wants you to get a credit card. Answer: According to the Assembly of Muslim Jurists of America (AMJA), in today’s Western society, especially in North America, having a credit card has … Read more
Question: What Is the Ruling on Pitching Phone Warranties and Late Payment Fees When Working at a Telecom Company? QuestionIf someone works at a phone company (such as Telus) and is required to pitch warranties on the phones they sell, what is the ruling on that? Also, what is the ruling on late payment fees … Read more
Are pawn shops allowed in Islam? There are two situations to consider when it comes to pawn shops in Islam: 1. Selling Your Item with No Strings Attached:If you sell your item to the pawn shop for a fixed price, and there’s no agreement to buy it back or change your mind later, this is … Read more
Question: When in-house financing a car through Toyota, you can go through their own Toyota Financial Services . They still charge interest on the loan provided, why is this halal and how is it different then getting a mortgage through a bank? Answer: Buying a Car through Islamic Financing: What’s Allowed and What’s Not When … Read more
There is a difference between a halal Murabaha mortgage and a conventional mortgage, both in structure and underlying principles. 1. Fundamental BasisConventional Mortgage: Involves a loan with interest (riba). The bank lends you money to buy a house, and you repay it with interest over time. Murabaha Mortgage: Based on Islamic finance principles that prohibit … Read more
Buying a Car through Islamic Financing: What’s Allowed and What’s Not Question: When financing a car through Toyota, you can go through their own Toyota Financial Services . They still charge interest on the loan provided, why is this halal and how is it different then getting a mortgage through a bank? Answer: When you … Read more
Zakah on lent money Q: Do I have to pay zakah on money I lent to someone else?A: It depends on the financial status of the borrower: Scenario: The borrower is wealthy and capable of repaying Example:If you lent $20,000 and you have $1,000,000 in your account: Scenario: The borrower is struggling or refuses to … Read more
How to calculate zakah on Inheritance Q: How do heirs calculate zakah on inheritance?A: Each heir must: Example:If a person has $70,000 in personal wealth and their share of inheritance is $20,000, they will: Q: What if the inheritance hasn’t been distributed yet?A: If the inheritance remains undivided for a full year, then zakah is … Read more
Zakah on Inherited wealth Q: Does zakah apply to inherited wealth or wealth that has reached the nisab and a full year has passed?A: Yes, zakah is due on inherited wealth as long as it: Wallahu Alam