What is the ruling on trading the shares of companies whose activities are permissible and lawful, but which borrow through riba (usury or interest)?
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The questioner:
May Allah reward you, Honorable Shaykh. This questioner says: What is the ruling on trading the shares of companies whose activities are permissible and lawful, but which borrow through riba and deposit their funds in riba?
The Shaykh:
Borrowing through riba, that is it. If it borrows a riba loan, it is using riba. And if it deposits its funds for investment and takes interest on them, this is riba dealing. So this is a riba company, and it is not permissible to deal with it. Yes.
The presenter:
May Allah reward you, Honorable Shaykh.
The Shaykh:
The one that has riba shares. Yes. However, if the company is honest and has no riba dealing, it does not take riba and does not give riba, then there is nothing wrong with investing in it or buying its shares. Yes.
May Allah reward you, Honorable Shaykh. This questioner says: What is the ruling on trading the shares of companies whose activities are permissible and lawful, but which borrow through riba and deposit their funds in riba?
The Shaykh:
Borrowing through riba, that is it. If it borrows a riba loan, it is using riba. And if it deposits its funds for investment and takes interest on them, this is riba dealing. So this is a riba company, and it is not permissible to deal with it. Yes.
The presenter:
May Allah reward you, Honorable Shaykh.
The Shaykh:
The one that has riba shares. Yes. However, if the company is honest and has no riba dealing, it does not take riba and does not give riba, then there is nothing wrong with investing in it or buying its shares. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، [736 -954] ما حكم تداول أسهم الشركات ذات النشاط المباح المشروع، لكنها تقترض الربا؟ - صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.