Knowing the dealings of a company before investing in it
Machine translationRead the Arabic original
The second question of Fatwa No. ( 15088 )
Q2: From time to time, some companies or Islamic banks announce their readiness to accept funds from those who wish to invest, to be employed in investment projects in accordance with the Islamic Shari'ah. The ordinary person usually cannot verify this with certainty, and the most he can usually do is read the brochures issued by Islamic companies to introduce themselves. Sometimes these brochures mention the names of well-known Islamic figures as participating members in the founding, or as a fatwa committee supervising
the permissibility of the investment operations carried out by the company. My question is: To what extent must a Muslim investigate this in order for it to be permissible for him to participate in such companies, if he is certain that they actually deal in accordance with the Islamic Shari'ah? What are the practical methods of investigation in the present time—if you are aware of them? Also, I am attaching a brochure from one of these institutions to my letter, so could you issue a ruling on the permissibility of my investment in it? May Allah reward you with good.
A2: If it is your predominant belief that it is free from what contradicts the pure Shari'ah, then there is no blame on you in participating in it, provided you exert your best effort to know the truth before dealing with it; for Allah Mighty and Majestic said:[At-Taghabun 64:16] . And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: From time to time, some companies or Islamic banks announce their readiness to accept funds from those who wish to invest, to be employed in investment projects in accordance with the Islamic Shari'ah. The ordinary person usually cannot verify this with certainty, and the most he can usually do is read the brochures issued by Islamic companies to introduce themselves. Sometimes these brochures mention the names of well-known Islamic figures as participating members in the founding, or as a fatwa committee supervising
the permissibility of the investment operations carried out by the company. My question is: To what extent must a Muslim investigate this in order for it to be permissible for him to participate in such companies, if he is certain that they actually deal in accordance with the Islamic Shari'ah? What are the practical methods of investigation in the present time—if you are aware of them? Also, I am attaching a brochure from one of these institutions to my letter, so could you issue a ruling on the permissibility of my investment in it? May Allah reward you with good.
A2: If it is your predominant belief that it is free from what contradicts the pure Shari'ah, then there is no blame on you in participating in it, provided you exert your best effort to know the truth before dealing with it; for Allah Mighty and Majestic said:
So fear Allah as much as you are able
فَاتَّقُوا اللَّهَ مَا اسْتَطَعْتُمْ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.