What if the company in which a person is going to invest is dealing with capital interest.
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What if the company in which a person is going to invest is dealing with capital interest as of today no business runs without the help of banks or if the owner of the company is a kafir. Please answer, Jazakallahkhair
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Working kaafir company
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Your Question: ..or if the owner of the company is a kafir.
Provided the work or job one does is not of an unlawful nature in its essence, the belief of the owner of the company is absolutely immaterial.for a believer is at absolute liberty to work for (or employ) a believer or a non-believer in Islam.
Your Question: ..What if the company in which a person is going to invest is dealing with capital interest as of today no business runs without the help of banks
According to the view of most contemporary scholars in Islam, investment in shares and/or the stock market in its essence is permissible in Islam, provided the following guideless are honored:
The three main factors that make an investment in shares and stocks haraam according to the scholars is as follows:
1. The company should not deal exclusively in a product which is declared haraam in its essence in Islam. Eg. alchohol, prostitution, usury, pork, etc.
2. The company should not deal in a product which is used to harm a muslim country. Eg. Arms manufacturing in a pagan country, etc.
3. Only the pure buying, holding, and selling of stocks is termed halaal by the scholars. All types of other derivative transactions like shorting the stock, buying calls, selling calls, buying puts, selling puts, straddles, or any other variations and derivatives are not lawful.
If one wishes to invest in an individual or private company, it would obviously be best that one do so only on the condition that the company shall not indulge in anything which has been specifically declares as haraam or unlawful in Islam.
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