What is the ruling on the zakah of shares in a company whose purpose is supervising modern factories?
Machine translationRead the Arabic original
The Shaykh: Yes.
The questioner : There is a company in Jeddah called SABIC. Its purpose is to supervise the factories that were recently established in the industrial city of Jeddah.
The Shaykh : Yes.
The questioner : Saudi citizens and citizens of the Gulf Cooperation Council countries in the Gulf buy shares in this company. I mean, to help you, let me clarify the picture. This company operates in factories; steel factories, petrochemical factories, fertilizer factories. So, is there zakah on these shares?
The student : Sir, what is that noise?
The Shaykh : I thought the question would be different, but my assumption was wrong.
The questioner : Perhaps it will follow.
The Shaykh : So I thought you would ask: Is it permissible to participate by buying shares in these companies? My answer is: It is not permissible. Because all the companies existing today in the world—I do not exclude the Islamic world from this world—because the Islamic world today deals in all its companies with systems other than the Islamic system. Among these is that the company's funds, like all companies, are placed in banks, and they take from them what is called, unjustly and oppressively, interest, which is riba itself. One dirham of it is more severe and more dangerous in the sight of Allah than thirty-six acts of zina. One dirham! Therefore, it is not permissible to deal with these companies. And in that case, it is understood implicitly that the Muslim who asks about what is haram and what is halal will not fall into such a matter. Because he will not have shares in such a company. Is that clear?
The questioner : Is that clear?
The Shaykh : But I say, adding from my own side, that not everything Al-Albani says is revelation from the sky, naturally. This is the opinion of a man, a student of knowledge, who testifies about himself, and perhaps others testify about him, meaning more than that is not the case. So he is subject to error and forgetfulness. If he says that buying shares in these companies is not permissible, he may find dozens of scholars who issue fatwas permitting it. In that case, the questioner will be forced to insist on the previous question. Okay, "Barki" is one person who was not convinced by your point of view. Barki is actually a shareholder, and let him withdraw to the end. We say: This is our opinion. And naturally, every person is like this, every scholar is like this. Some things people like, and some things they do not like. So my previous answer to the first question, of course, they will not like. Because in its meaning, in modern terms, it is the suspension of the economy, praise be to Allah! Suspension of the economy. But they will like it when you tell them: The Shaykh does not see zakah on trade funds, but rather sees zakah on the two currencies (gold and silver). And now, these shares have a moral value, or what are they? Working labor.
Yes?
The questioner : They are traded, they moved.
The Shaykh: Yes.
The questioner : Like trade goods.
The Shaykh : For example, a steel factory means they buy raw steel in it, and so on. That is, the funds have been converted into goods. And I say: There is no zakah on goods, no zakah on trade goods. So whoever Allah tests and does not guide to withdraw his shareholding in these companies, he owes no zakah. Because he does not have the two currencies in his hands, and what passes? The condition of zakah, which are two conditions: reaching the nisab, and the completion of the lunar year. I say this while there are those who follow the present age and issue fatwas—for example—that singing is halal. Because people are using television and radio, and make things easy, do not make them hard. Singing is not haram, yes. And finally, one of them said: If you go to such-and-such country and find them dancing and singing, do not be strict with them, do not declare it haram for them. Because this prohibition has no decisive text in the Shari'ah, and so on. Also, among following the present age is that we be close to communism. And if we are not close to communism, at least socialism. And if we say the funds that employees take every month have no zakah until we store them in the vault, and they reach the nisab, and the lunar year passes over them, it means we have opened the door for communism to take over our countries. Therefore, we block this door, and we obligate people what Allah and His Messenger did not obligate, from the door of—brother—realizing the public benefit. The public benefit requires this. So every employee must do what? Deduct two and a half percent from his salary, even if the condition of reaching the nisab and the completion of the lunar year is not met. And I fear that the respected Saudi state is working with this fatwa or this theory.
The questioner : A tax...
The Shaykh : Yes?
The questioner : ...a tax, the income tax in Saudi Arabia.
The Shaykh : No, there is also a zakah tax on the funds of teachers.
The questioner : Salaries, I mean.
The Shaykh : Yes?
The questioner : Salaries of employees.
The Shaykh : That is it.
The questioner : A period for the brother Muhammad.
The Shaykh: Yes.
The questioner : Professor Muhammad... in Medina.
The Shaykh : Excuse me, are we finished with your question?
The questioner : We are finished.
The Shaykh : Yes, please go ahead.
The questioner : There is a company in Jeddah called SABIC. Its purpose is to supervise the factories that were recently established in the industrial city of Jeddah.
The Shaykh : Yes.
The questioner : Saudi citizens and citizens of the Gulf Cooperation Council countries in the Gulf buy shares in this company. I mean, to help you, let me clarify the picture. This company operates in factories; steel factories, petrochemical factories, fertilizer factories. So, is there zakah on these shares?
The student : Sir, what is that noise?
The Shaykh : I thought the question would be different, but my assumption was wrong.
The questioner : Perhaps it will follow.
The Shaykh : So I thought you would ask: Is it permissible to participate by buying shares in these companies? My answer is: It is not permissible. Because all the companies existing today in the world—I do not exclude the Islamic world from this world—because the Islamic world today deals in all its companies with systems other than the Islamic system. Among these is that the company's funds, like all companies, are placed in banks, and they take from them what is called, unjustly and oppressively, interest, which is riba itself. One dirham of it is more severe and more dangerous in the sight of Allah than thirty-six acts of zina. One dirham! Therefore, it is not permissible to deal with these companies. And in that case, it is understood implicitly that the Muslim who asks about what is haram and what is halal will not fall into such a matter. Because he will not have shares in such a company. Is that clear?
The questioner : Is that clear?
The Shaykh : But I say, adding from my own side, that not everything Al-Albani says is revelation from the sky, naturally. This is the opinion of a man, a student of knowledge, who testifies about himself, and perhaps others testify about him, meaning more than that is not the case. So he is subject to error and forgetfulness. If he says that buying shares in these companies is not permissible, he may find dozens of scholars who issue fatwas permitting it. In that case, the questioner will be forced to insist on the previous question. Okay, "Barki" is one person who was not convinced by your point of view. Barki is actually a shareholder, and let him withdraw to the end. We say: This is our opinion. And naturally, every person is like this, every scholar is like this. Some things people like, and some things they do not like. So my previous answer to the first question, of course, they will not like. Because in its meaning, in modern terms, it is the suspension of the economy, praise be to Allah! Suspension of the economy. But they will like it when you tell them: The Shaykh does not see zakah on trade funds, but rather sees zakah on the two currencies (gold and silver). And now, these shares have a moral value, or what are they? Working labor.
Yes?
The questioner : They are traded, they moved.
The Shaykh: Yes.
The questioner : Like trade goods.
The Shaykh : For example, a steel factory means they buy raw steel in it, and so on. That is, the funds have been converted into goods. And I say: There is no zakah on goods, no zakah on trade goods. So whoever Allah tests and does not guide to withdraw his shareholding in these companies, he owes no zakah. Because he does not have the two currencies in his hands, and what passes? The condition of zakah, which are two conditions: reaching the nisab, and the completion of the lunar year. I say this while there are those who follow the present age and issue fatwas—for example—that singing is halal. Because people are using television and radio, and make things easy, do not make them hard. Singing is not haram, yes. And finally, one of them said: If you go to such-and-such country and find them dancing and singing, do not be strict with them, do not declare it haram for them. Because this prohibition has no decisive text in the Shari'ah, and so on. Also, among following the present age is that we be close to communism. And if we are not close to communism, at least socialism. And if we say the funds that employees take every month have no zakah until we store them in the vault, and they reach the nisab, and the lunar year passes over them, it means we have opened the door for communism to take over our countries. Therefore, we block this door, and we obligate people what Allah and His Messenger did not obligate, from the door of—brother—realizing the public benefit. The public benefit requires this. So every employee must do what? Deduct two and a half percent from his salary, even if the condition of reaching the nisab and the completion of the lunar year is not met. And I fear that the respected Saudi state is working with this fatwa or this theory.
The questioner : A tax...
The Shaykh : Yes?
The questioner : ...a tax, the income tax in Saudi Arabia.
The Shaykh : No, there is also a zakah tax on the funds of teachers.
The questioner : Salaries, I mean.
The Shaykh : Yes?
The questioner : Salaries of employees.
The Shaykh : That is it.
The questioner : A period for the brother Muhammad.
The Shaykh: Yes.
The questioner : Professor Muhammad... in Medina.
The Shaykh : Excuse me, are we finished with your question?
The questioner : We are finished.
The Shaykh : Yes, please go ahead.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.